Insurance Appraisal and the Umpire Process
Your carrier says the repair costs one figure. Your contractor says another. Neither side is moving, and litigation would cost more than the gap between them.
There's a provision in most property policies written for exactly this, and most policyholders have never heard of it.
We're Insurance Claims Consultants. This page explains how appraisal works, when it helps, and when it doesn't.
Call (864) 497-2151. First conversation is free.
What the Appraisal Clause Does
Most property policies contain an appraisal provision. Where the dispute is about the amount of a loss — not whether it's covered — either party can invoke it.
The mechanism is straightforward:
- Each side appoints its own competent, impartial appraiser
- The two appraisers select an umpire between them
- Each appraiser assesses the loss and states a figure
- Where they agree, that's the award
- Where they don't, the umpire decides, and agreement between any two of the three binds everyone
It's binding on the amount, and it removes the dispute from the carrier's own claims department.
What Appraisal Cannot Resolve
This is where the process is most often misunderstood.
Appraisal determines the value of a loss. It does not determine coverage.
If the carrier says the peril is excluded, that the damage predates the policy, or that a condition was breached, appraisal will not help — those are coverage questions and they go elsewhere.
Where the carrier accepts the loss and disagrees only about the number, appraisal is often the most direct route available.
In practice claims are frequently mixed: partly a coverage argument and partly a valuation one. Establishing which is which comes first, because it determines whether appraisal is even the right tool.
What an Umpire Is
The umpire is the neutral third party who decides between two appraisers who can't agree.
They should be genuinely impartial and competent in the type of loss at issue — a commercial building fire and a residential hail claim call for different knowledge. Where the appraisers can't agree on an umpire, a court will usually appoint one on application.
The umpire doesn't run a hearing in the way a court would. They review both appraisers' positions, generally inspect the property, and reach a determination. It's a valuation exercise rather than a trial.
An award signed by any two of the three — either appraiser plus the umpire — binds the parties as to amount.
When It's Worth Invoking
Appraisal tends to make sense when:
- Coverage is accepted and only the amount is disputed
- The gap between the two estimates is substantial enough to justify the cost
- Negotiation has genuinely stalled rather than merely slowed
- You have a properly documented estimate to put forward
It tends not to when:
- The dispute is about coverage or causation
- The gap is small relative to the cost of the process
- Your own scope isn't yet fully documented — appraisal will assess what you can evidence, not what you believe
- The claim raises bad-faith questions, which need a different route entirely
Both sides bear their own appraiser's cost and share the umpire's. It isn't free, but it is considerably cheaper than litigation.
How It's Invoked
- Check the clause. Wording varies, and some policies impose conditions or time limits on invoking it.
- Demand appraisal in writing, referencing the provision and the claim number.
- Appoint your appraiser. They need to be competent in the type of loss and independent — this is not a formality.
- Have your documentation ready. The appraisal will turn on the scope and estimate you can evidence.
- Agree an umpire, or apply to a court if the appraisers can't.
The carrier can invoke it too, and sometimes does — occasionally to slow a claim down. Whether that's to your advantage depends on how well documented your position is.
How We Help
When you hire us, we take the claim off your hands. We establish whether your dispute is genuinely about amount rather than coverage, document the scope so it stands up in appraisal, and tell you plainly when the process isn't the right tool.
Appraisal is a valuation exercise. It's won on documentation rather than argument, which is what we do.
No hourly billing. No upfront cost.
Our fee is a percentage of what you recover.
We work for you, not for the insurance company.
Anywhere in North Carolina, South Carolina or Georgia, call (864) 497-2151.
