Coverage may be accepted while the payment remains far below the documented cost of restoration. Underpayment analysis separates disagreements about scope, price, valuation, limits and policy conditions.
Where the numbers diverge
- Missing rooms, components, finishes or code-required work
- Repair versus replacement and matching questions
- Labor, material, overhead and profit assumptions
- Depreciation, actual cash value and recoverable holdback
- Contents quantity, ownership, condition and valuation
- Deductibles, sublimits, coinsurance and prior payments
Compare like with like
A contractor's reconstruction estimate and a carrier estimate may use different scopes, measurements and assumptions. A useful comparison aligns line items, quantities and pricing before focusing on the total difference.
Appraisal may not answer every question
Appraisal can be relevant to amount-of-loss disputes where the policy permits it, but coverage, causation and legal interpretation may remain outside the panel's authority. The dispute should be classified before demanding or accepting appraisal.
General information only. Last reviewed July 29, 2026. A case-specific answer requires the complete policy, facts and applicable deadlines.