The appraisal clause, in one paragraph
Most Texas property policies contain an appraisal clause. It exists for one specific situation: you and your insurance company disagree about HOW MUCH it will take to make you whole. Instead of a lawsuit, the clause creates a structured way to settle the number. Each side hires its own appraiser. The two appraisers pick a neutral umpire. When two of the three agree on the amount, that amount generally becomes binding on both sides.
It works in both directions
This is the part that surprises people. Appraisal is not just something you do to your insurance company. It can be done to you.
You invoke it on the carrier
Their estimate will not cover the actual repair, the adjuster will not move, and negotiations have stalled. You send written notice invoking the appraisal clause and name your appraiser. If the demand is proper under your policy, the carrier names its appraiser and the process moves forward.
The carrier invokes it on you
You get a letter saying appraisal has been demanded and you have a limited time to name your own appraiser. Carriers are allowed to do this under the policy. If this is you, the clock matters: read the demand letter guide before anything else.
What appraisal decides, and what it does not
Appraisal sets the AMOUNT of the loss. It does not decide whether a loss is covered, whether a deadline was missed, or whether anyone acted in bad faith. Those are coverage and legal questions that stay outside the process, and a court decides them if they have to be decided. Appraisers can still end up looking at what caused the damage, because setting the amount often means separating damage from the event you are claiming from damage that was already there or that the policy excludes. If you have a coverage dispute as well as a disagreement about the number, talk to your attorney about how the two fit together.
The three people in the room
- Your appraiser. Named by you and paid by you. Policies typically require an appraiser to be competent and to be impartial or disinterested. Their job is building and defending an honest valuation of your loss.
- The carrier's appraiser. Named and paid by the insurance company, same job from their side.
- The umpire. A neutral third selected by the two appraisers (or appointed by a court if they cannot agree). The umpire typically decides only what the two appraisers cannot agree on.
How the process runs
- One side invokes appraisal in writing.
- Both sides name their appraisers within the time the policy sets.
- The appraisers exchange documentation, inspect the property, and each build their valuation.
- They compare numbers and resolve what they can between themselves. Honest appraisers agree on more than you would expect.
- Whatever remains in dispute goes to the umpire. When any two of the three sign the award, the amount is set.
Timelines vary with schedules, the size of the loss, and how far apart the numbers start. Many appraisals resolve in weeks to a few months, and in our experience appraisal is usually faster than litigation, but no one can promise you a date.
What it costs
Each side pays its own appraiser, and the two sides typically split the umpire's fee. Any appraiser worth hiring will put their fee in writing before you commit to anything. We do.
Common questions
Generally yes, as to the amount. Only a court can set an appraisal award aside, and courts do that only in narrow circumstances. Coverage disputes remain separate and are not decided by the award.
Appraisal is a policy process, not a court process, and policyholders often go through it without a lawyer. Whether you need one depends on your situation, and if coverage, a missed deadline, or bad faith is in dispute, that is a question for an attorney. If you already have an attorney or public adjuster, they will usually coordinate the appraisal. If you do not, you can invoke appraisal and name an appraiser yourself.
Policies typically require appraisers to be impartial or disinterested, and the practical bar is competence: your number only holds up if the person behind it can defend every line of it. Look for construction knowledge, real estimating experience on Texas losses, and insurance industry credentials.
Last reviewed: September 2, 2026.