Appraisal is a policy-based process for resolving certain amount-of-loss disagreements. Whether it is useful depends on what the parties actually dispute.
Amount of loss or coverage?
Appraisal is often directed to valuation. A dispute about whether a loss is covered, whether an exclusion applies or whether the insured complied with a policy condition may require legal resolution instead. Some disputes contain both types of questions.
Issues to address before demanding appraisal
- The wording of the appraisal condition
- Whether coverage has been accepted for the disputed items
- The competing scopes and estimates
- Appraiser qualifications, impartiality and disclosures
- Umpire selection, process, fees and documentation
- Deadlines, reservations and interaction with litigation
A defined record improves the process
The parties should understand which property, damage and valuation questions are being submitted. An unclear or incomplete scope can carry the original disagreement into the appraisal.
General information only. Last reviewed July 29, 2026. A case-specific answer requires the complete policy, facts and applicable deadlines.