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Insurance Appraisal: Common Questions

Straight answers about how the property insurance appraisal process works in Texas, what an appraiser and an umpire actually do, and where the line sits between the amount of a loss and coverage.

What is insurance appraisal?

Insurance appraisal is a process built into most property insurance policies for settling a disagreement about the amount of a loss without a lawsuit. Each side names an appraiser, the two appraisers select an umpire, and when any two of the three agree on a number, that number generally binds both sides as to the amount of the loss. There is a fuller walkthrough on what insurance appraisal is.

What is the appraisal clause?

The appraisal clause, sometimes called the appraisal condition, is the part of the policy that creates this process. Most Texas property policies contain one. Under most policy language, either side can invoke it: your carrier can invoke it on you, and you can invoke it on your carrier.

Does appraisal decide whether my claim is covered?

No. Appraisal decides the amount of a loss, not whether the policy covers it. Coverage questions stay between you and your carrier, and where they are disputed, with your attorney. Appraisal is built for the common situation where both sides agree there is a covered loss but disagree on what it costs to repair.

Is an appraiser the same as a public adjuster or an attorney?

No. A public adjuster represents the policyholder in the claim itself. An attorney gives legal advice. An appraiser is named to value the loss inside the appraisal process. We serve as appraiser and as umpire. We are not public adjusters and we are not attorneys.

What does an umpire do?

When the two appraisers cannot agree on the amount, the umpire reviews both positions and sets the number. When any two of the three agree, that amount generally binds both sides as to the amount of the loss. The umpire decides the amount, not whether the claim is covered. More on umpire services.

I received an appraisal demand letter. What should I do?

A demand letter usually means appraisal is being invoked, and a response may be expected within a time set by your policy. Read it closely, do not ignore it, and get advice before that window closes. Our appraisal demand letter guide walks through it.

What does it cost to hire an appraiser or umpire?

The fee depends on the matter, the property, and the scope of the work. We provide the fee in writing before any engagement. The first conversation costs nothing.

What kinds of losses and property do you handle?

Residential and commercial property, across wind, hail, hurricane, water, and fire losses.

What areas do you serve?

All of Texas, from a home base in the Rio Grande Valley.

How do I get started?

Call or email with the basics of your situation. If appraisal is not the right fit, we will tell you.

Still Have a Question?

The first conversation costs nothing. Call or email and we will give you a straight answer.

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