What Is an Appraisal Clause?

Standard property policies spell out the steps. One side makes a written demand for appraisal. Each side then selects a competent, disinterested appraiser within the time the policy allows, and the two appraisers select an umpire. The appraisers value the loss separately. If they agree, that figure stands. If not, the umpire reviews the differences, and an award signed by any two of the three sets the amount. Typically each side pays its own appraiser and the two share the umpire’s cost.

Appraisal is the formal path for an underpaid claim where coverage is not in question and the argument is about scope or price: the number of squares, the repair method, the cost of particular line items. A contractor’s estimate, measurements, and photos usually form the backbone of the homeowner’s case. Reps tend to bring it up after a supplement and a reinspection have failed to close the gap, which makes timing and documentation matter.

The limits catch people out. Appraisal normally decides the amount of loss, not whether the policy covers the damage, and courts in different states disagree on whether appraisers may also decide what caused it. Deadlines and rules differ, and the process takes time and costs money. Because an appraiser is supposed to be disinterested, a roofer who profits from the repair may be disqualified from serving as the homeowner’s appraiser. Present appraisal as an option to explore with a licensed professional, not a sure fix.