Insurance Appraisal FAQ
What is insurance appraisal?
Many property policies contain an appraisal provision. We start by reading yours. Appraisal is the policy process used to determine the amount of a covered loss when the parties disagree on value. Under a typical provision, each party selects an appraiser, the appraisers select an umpire, and a written award signed by two panel members sets the amount determined through appraisal. Your policy controls.
When should I consider appraisal?
Consider appraisal when the insurer has accepted coverage for at least part of the loss and the disagreement is about the amount. The fight may be over scope, repair method, quantities, or price. If the dispute is purely about whether the policy covers the loss at all, that question sits outside the panel. Send the file for review and we will tell you which side of that line it falls on.
Does appraisal decide coverage?
For a Florida claim, the working rule is this: appraisal primarily determines the amount of a covered loss, including disputed scope and repair valuation when those issues fall within the policy's appraisal provision. Pure coverage disputes remain outside the panel's authority.
Can appraisal address disputed repair scope?
Yes, when the scope dispute falls within the policy's appraisal provision. Scope and repair method are part of the amount of loss. The panel does not just compare prices. It decides what work the loss actually requires and what that work costs.
Can one party demand appraisal?
Whether appraisal can be demanded by one party or requires agreement from both sides depends on the policy. We start every review by reading the appraisal provision itself.
What happens if the insurer refuses appraisal?
A refusal does not end the question. The policy language controls whether appraisal can be demanded and what follows a refusal. Courts can be asked to compel appraisal under the provision. That step needs legal review, and the demand record matters, so keep every letter.
How much time do we have to name an appraiser?
The policy sets the selection period and the event that starts it. Some provisions use a specified period after a written demand. Read the clause and the demand letter together, and calendar the earlier risk until the correct deadline is confirmed.
How long does appraisal take?
No fixed clock applies to every file. Timing turns on the size of the loss, the inspection schedule, the document exchange, and the panel's work on each disputed item. The policy sets the deadlines that start the process, including the period to name an appraiser after a demand. The review calendars those dates first so the process starts on time.
What does the appraiser do?
Nathan serves as the appraiser you select. His job is to approach the loss with an open mind, independently evaluate the amount of loss, and support the valuation with evidence, construction knowledge, documentation, and professional judgment.
The work includes inspection, measurement, repair methodology, quantities, pricing, document review, and item-by-item work with the other appraiser.
Do both appraisers inspect the property?
Each appraiser independently evaluates the amount of loss. An evaluation built on the property itself requires an inspection of it. Expect both appraisers to inspect, measure, and document the damage rather than work only from the other side's paper.
What happens during the inspection?
The appraiser walks the damaged property and builds the physical record. That includes measurements, photographs, moisture readings where relevant, and an inventory of the systems involved. The appraiser also studies how the repair must actually happen: access, demolition, protection of undamaged areas, and the order of the work. Bring the insurer's estimate and any contractor estimate you have.
Must every appraiser meet the same independence rule?
No universal rule should be assumed. Check whether your policy requires a competent, independent, impartial, or disinterested appraiser, and apply the exact policy language. Disclose relationships and prior roles that may matter under that language.
What does the umpire do?
The umpire is the third panel member. If the appraisers cannot resolve an item, they present the remaining difference and evidence to the umpire. Under a two-signature award rule, the umpire does not decide alone. Two of the three panel members sign the final award, subject to the policy language.
What if the appraisers cannot agree on an umpire?
If the appraisers cannot agree on an umpire, some policies provide a mechanism for court appointment. The actual process depends on your policy.
How are appraisal fees structured?
Loss Recovery Experts bills by the hour. The fee reflects the hours the assignment takes, travel time, and any experts the file requires. We confirm the billing terms in writing after reviewing the file. The total cannot be known until the appraisal is complete. No one can honestly quote it in advance, because no one knows at the start how long the assignment will take.
The umpire expense is separate from the appraiser's fee. A typical provision requires each party to share the umpire's expense, but your policy controls the allocation.
Who pays each appraiser?
A typical provision requires each party to pay the appraiser that party selected. Your policy controls. Loss Recovery Experts bills by the hour. The billing terms are provided in writing after the file review. The total reflects the hours the assignment takes and cannot be known until the appraisal is complete.
Does a small dispute belong in appraisal?
Not always. Not every disagreement belongs in appraisal. The disputed amount needs to justify the time and expense of the process. The initial review tests economic fit as well as policy fit.
When is appraisal not economically sensible?
When the amount in dispute is smaller than the cost of running the process. Appraisal takes appraiser time, an umpire if the panel needs one, and document work. If the gap cannot carry those costs, the review will say so. That test runs before the firm accepts an assignment, not after.
Can appraisal help after a partial payment?
It may. A partial payment does not by itself answer the total amount of loss. The review must consider the policy, payment letters, releases or agreements, and the current claim status.
Can appraisal help after a denial?
If the denial rests on a pure coverage dispute, that issue remains outside the panel's authority. Send the letter for review anyway. Some files mix a coverage position with disputed scope or valuation that may fall within the appraisal provision.
Is an appraisal award binding?
The effect of an award depends on the policy and applicable law. Many provisions treat a properly issued award as the amount determined through appraisal, but the result is not identical for every issue or every policy. Keep the award with the full panel record.
When does the insurer pay after an award?
The written award establishes the amount determined through appraisal. Any payment due after the award remains subject to the policy, prior payments, deductibles, limits, and any issues reserved outside appraisal.
Can an award be challenged?
A challenge is limited and fact specific. The available grounds and procedure depend on the policy and applicable law. A disagreement with the amount alone may not be enough. Preserve the record and get legal review if a procedural or authority problem appears.
What is the difference between ACV and RCV?
Replacement cost value concerns the cost to repair or replace damaged property with like kind and quality under the policy. Actual cash value is a separate valuation measure defined by the policy and applicable law. Depreciation, deductibles, and prior payments must be kept separate from the amount of loss.
ACV, RCV, and the appraisal award
Is appraisal the same as arbitration or mediation?
No. Appraisal uses a policy panel to determine amount of loss. Arbitration submits disputes to an arbitrator for a decision. Mediation is a facilitated negotiation and produces a decision only if the parties settle. Litigation asks a court to decide legal issues.
Compare appraisal, lawsuit, arbitration, and mediation
What is the difference between a public adjuster and an appraiser?
A public adjuster represents the policyholder in the claim. An appraiser serves in one defined role on the appraisal panel: independently evaluate the amount of loss and support that valuation with evidence. The duties are different, and the roles are not interchangeable.
Can Nathan be my public adjuster and appraiser on the same claim?
No. At Loss Recovery Experts, Nathan does not hold both roles on the same claim. That is the firm's rule. The engagement states the role in writing before work begins.
What documents should I provide?
Start with the policy and the insurer's estimate. Add payment letters, your contractor's estimate, photographs, expert reports, and the appraisal demand if one has been sent. Send what you have. The review identifies what is missing and whether the gap matters.
What happens after I request a review?
We typically respond by the next business day. We read the appraisal provision, review the estimates and status, and tell you whether appraisal fits the dispute and the economics.