Insurance Appraisal Clause Explained: How Appraisal Works in a Property Claim

The short answer

Appraisal is a process in most property policies for settling disagreements over the amount of a loss. Each side picks an appraiser, the two pick an umpire, and an agreement of any two sets the amount. It usually does not decide whether something is covered.

When appraisal fits, and when it doesn’t

Appraisal fits when you and the insurer agree the damage is covered but disagree about what it costs to repair or replace. It usually doesn’t fit when the fight is about coverage: whether the policy pays at all. Coverage questions often need an attorney. If your claim was denied

How it usually works

1. One side makes a written demand for appraisal, as the policy describes.
2. You and the insurer each choose an appraiser.
3. The two appraisers choose an umpire.
4. The appraisers each estimate the loss. If they agree, that’s the amount. If they don’t, the umpire decides, and an agreement of any two sets the amount.

The Texas Department of Insurance describes the same process and says the result is binding on both you and the company. Your own policy’s wording controls, including any deadline to demand appraisal, so read it before you start.

What it costs

Typically each side pays its own appraiser and half of the umpire’s cost. TDI says the same. Ask any appraiser how they charge before you hire them.

Where a public adjuster or attorney fits

A public adjuster may prepare the claim and the estimate behind it. Some firms, including ours, also provide appraisal and umpire services. An attorney handles coverage and legal disputes. Our appraisal and umpire services · Other options when the estimate is too low.

Sources

• TDI: What if my insurance isn’t paying enough?
• TDI: How to file a home insurance claim (PDF)

Last checked: October 28, 2026. This is general information, not legal advice.