Why Carriers Sometimes Prefer Appraisal Over Litigation

Browse the full Resources Index

Insurance carriers sometimes prefer appraisal over litigation for resolving a disputed claim amount, and understanding the general reasons behind this preference can provide useful context on the process.

Appraisal is typically faster than litigation, which can help carriers resolve disputes and close claims more efficiently, without the extended timelines often associated with formal court proceedings.

Costs associated with appraisal, generally limited to appraiser and umpire fees, are often lower than the cumulative costs of litigation, including attorney fees and other court related expenses.

Appraisal is also narrowly focused on the disputed dollar amount, which can make it a more predictable and contained process compared to litigation, which can sometimes expand to address a broader range of legal issues.

These practical advantages, speed, cost, and a narrow focus on valuation, are often cited as reasons carriers, like many policyholders, may see appraisal as a reasonable path forward for resolving a genuine dollar amount disagreement.

The material above is general education about how property insurance appraisal commonly works, not legal advice; specific procedures differ by state and policy. If you have questions about a specific claim, review your policy language and talk with the insurance company or an attorney familiar with your state’s laws.

Russ Lis works nationwide as a property insurance appraiser and umpire, based in Minnesota. Have a question about your own claim? Contact Appraisal Resolution.