Texas Appraisal Clause Guide
Most Texas homeowner and commercial property policies contain an appraisal clause — a contractual mechanism that lets you and your insurer each hire an independent appraiser when you disagree on the value of a covered loss. If those two appraisers can't agree, they jointly select a neutral umpire whose decision on disputed items is binding. If you are ready to start, see our step-by-step guide to invoking appraisal and our insurance appraisal process guide. You can alsobrowse all guides or review the frequently asked questions for related appraisal topics.
When Can You Invoke It?
You can demand appraisal any time you and your insurer disagree on the amount of the loss — not on whether coverage applies. Typical triggers:
- The insurer's estimate is lower than contractor quotes you've received
- The insurer denies line items you believe are covered (scope disputes)
- The insurer's adjuster and your contractor can't agree on unit costs
In Texas, one of the most common examples is a hail damage insurance claim dispute, where the carrier and contractor disagree on roof scope and pricing.
How the Process Works
- Demand appraisal in writing. Review your policy for the specific language — typically found in the "Conditions" section. Send written demand to the insurer's claims address.
- Each party selects a competent, independent appraiser. Texas courts have interpreted "independent" to mean the appraiser has no financial stake in the outcome beyond their fee.
- The two appraisers attempt to agree. They inspect the property, review documentation, and try to reach a joint award.
- If they disagree, they select an umpire. The umpire reviews the two appraisers' positions and issues a written award on disputed items. Agreement of any two of the three (both appraisers, or one appraiser + umpire) is binding.
- The insurer pays the award. The process is binding on both parties for the amount of loss — it does not waive any coverage defenses.
Policyholder-Side vs. Insurer-Side Appraisers
Your insurer will hire an appraiser who works for them routinely. You should hire someone who works exclusively for policyholders — someone with no ongoing relationship with the insurance company and no incentive to undervalue your claim.
Every professional in this directory works policyholder-side only. If you are weighing appraisal against going to court, our insurance appraisal vs. litigation guide compares the two paths. If your claim also involves carrier delay issues, review our Texas insurance claim deadlines and timelines guide. Coastal readers may also need our TWIA insurance dispute appraisal guide, and roof-specific disputes often start with a roof damage insurance claim appraisal guide. North Texas readers may also compare the Dallas hail damage insurance claim appraisal guide, while Central Texas readers can review the Austin hail damage insurance claim appraisal guide.