How to Invoke the Insurance Appraisal Clause

A step-by-step guide for policyholders in a claim dispute who need to invoke appraisal to resolve the value of their loss. For a broader overview of what happens next, see our insurance appraisal process guide. If you need a licensed professional before sending a demand, start with the Texas insurance appraisers directory.

What Invoking Appraisal Means

The appraisal clause is a dispute-resolution mechanism in your insurance policy. When invoked, it brings in neutral professionals to determine the value of your claim—without going to court.

Key point: Appraisal resolves disputes about the value of a loss, not whether the claim is covered. Coverage disputes typically go to insurance appraisal vs. litigation analysis instead.

When You Can Invoke Appraisal

You may want to invoke appraisal when:

  • Your insurer's estimate is significantly lower than your contractor's estimate
  • There is disagreement about the scope of repairs needed
  • The insurer has delayed payment or denied items you believe are covered
  • You have exhausted negotiations and need a binding resolution, including common storm losses like a hail damage insurance claim dispute

Step-by-Step Process

  1. Review the appraisal clause in your policy — Find the specific language about appraisal timelines, how to invoke it, and what costs you may be responsible for. For a state example, our Texas appraisal clause guide shows how policyholders often analyze clause language in practice, and readers in other states can compare the Florida appraisal clause guide and Louisiana appraisal clause guide.
  2. Send a written demand for appraisal — Notify your insurer in writing that you are invoking the appraisal clause. Send this by certified mail and email.
  3. Each party selects an appraiser — You hire your own appraiser; the insurer hires theirs. Each pays their own appraiser. If you are unsure about selection rights, see can I choose my own insurance appraiser, and if the appraisers later deadlock, our guide to finding a qualified insurance umpire explains the next stage.
  4. Appraisers attempt agreement — Both appraisers inspect the property and negotiate to reach agreement on the loss value.
  5. If they disagree, an umpire is selected — The two appraisers jointly select a neutral umpire. If they cannot agree, the court or policy language may determine the umpire.
  6. The umpire resolves disputed items — The umpire reviews both estimates and issues a binding award for the items the appraisers could not agree on.

Sample Appraisal Demand Letter

Below is a simple template you can use to invoke appraisal. Customize it with your specific policy and claim details.

RE: Appraisal Demand — [Your Name]
Policy #: [Your Policy Number]
Claim #: [Your Claim Number]
Date: [Today's Date]

Dear [Insurance Company Name],

This letter serves as formal notice that I am invoking the appraisal clause under Section [X] of my insurance policy, Policy # [Policy Number], regarding the above-referenced claim.

There exists a disagreement between us as to the amount of loss covered under the policy. In accordance with the policy terms, I demand that the appraisal process be initiated immediately.

I have selected the following appraiser to represent my interest:

[Your Appraiser's Name]
[Phone Number]
[Email Address]

Please provide the name and contact information of your appraiser within [10] days of this letter.

Sincerely,
[Your Name]
[Your Address]
[Your Phone]
[Your Email]

Note: This is a sample template for informational purposes. Consult with a licensed attorney or public adjuster in your state for advice specific to your situation.

What Happens After Appraisal Is Invoked

Once appraisal is invoked, the process typically proceeds as follows:

  • Inspection — Both appraisers schedule inspections of the damaged property.
  • Estimate comparisons — Each party prepares a detailed estimate of damages.
  • Umpire involvement — If appraisers cannot agree, the umpire reviews both positions and makes a determination.
  • Binding award — The umpire's decision is binding on both parties (in most states), though limited court review may be available in some jurisdictions.

How to Choose an Appraiser or Umpire

Choosing the right professional matters. Look for someone with:

  • Active license in your state
  • Experience with your type of loss (residential, commercial, storm, fire, etc.)
  • Strong reputation and references
  • Clear fee structure

Find licensed professionals in your state:

Related Guides

Once the process is underway, you may need to understand what happens if the two appraisers cannot agree — see our FAQ on what happens when appraisers disagree. For typical fee ranges before you hire, review our insurance appraiser cost FAQ. If your dispute involves a specific loss type, our guides on roof damage, water damage, and hurricane damage insurance claim disputes explain how appraisal applies to each. You can also browse the full guides hub and return to the frequently asked questions index for related appraisal topics.