What the letter means
Your policy contains an appraisal clause. Either you or your insurance company can invoke it when there is a disagreement about the AMOUNT of your loss. The letter means the appraisal process has formally started. Each side now names its own appraiser, and the two appraisers choose an umpire. When two of the three agree on a number, that number generally binds both sides as the amount of the loss.
The deadline
Standard Texas policy language gives each side a limited window, commonly 20 days from receipt of the written demand, to name its own appraiser. Your specific deadline comes from YOUR policy language and the letter itself. Read both.
What to do, in order
- Find the deadline in the letter and in your policy's appraisal clause. Write it down.
- Review your policy's appraisal clause alongside the letter. If you already have an attorney or public adjuster, loop them in now.
- Choose your appraiser. This person is named by you, and policies typically require an appraiser to be competent and to be impartial or disinterested. Look for construction knowledge, real estimating experience on Texas losses, and insurance industry credentials.
- Name your appraiser in writing before the deadline, the way the letter instructs.
- Gather your documentation: photos, contractor estimates, receipts, the carrier's estimate, and all correspondence.
Common questions
If the clause has been properly invoked, not naming an appraiser can affect your rights and how the amount gets decided, and what happens next depends on your policy language and the facts. Talk to an attorney about your specific situation before you decide not to participate.
No. Appraisal resolves the amount of the loss. Coverage questions stay separate.
Typically each side pays its own appraiser and splits the umpire's fee. Ask any appraiser for their fee structure up front. We put ours in writing before you commit.
The award generally binds both sides on the amount of the loss. Only a court can set an award aside, and courts do that only in narrow circumstances. It does not decide coverage disputes.
If you already have one, they will usually coordinate the appraisal and may have appraisers they work with. If you have one, call them before doing anything else.
Last reviewed: September 2, 2026.
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