Short answer
Appraisal is a process in many homeowners policies for settling disagreements about the amount of a loss. You and the insurer each pick an appraiser, and an umpire breaks ties. It usually doesn't settle whether something is covered, only how much the damage is worth.
How appraisal works
- One side sends a written demand for appraisal.
- Each side hires its own independent appraiser.
- The two appraisers try to agree on the amount of loss.
- If they can't, an umpire decides, and agreement by any two of the three sets the amount.
When it makes sense
- The insurer agrees the damage is covered, but you're far apart on the price.
- You've already sent a contractor's estimate and evidence, and talks have stalled.
When it doesn't
- The dispute is about whether the loss is covered at all. That usually isn't decided by appraisal.
- The gap is small compared with the cost of hiring an appraiser and splitting the umpire's fee.
Costs
Each side usually pays its own appraiser and half of the umpire. Fees vary, so ask up front.
Read your policy
Find the "Appraisal" section for the exact steps and deadlines. Some states have their own rules too.
Common questions
Is appraisal binding?
The amount set by appraisal is usually binding on both sides, but coverage questions can still be disputed. Check your policy and state law.
Can the insurer demand appraisal?
Usually either side can.
Do I need a lawyer for appraisal?
Not necessarily, but for large or complicated claims, advice can help.