How does the appraisal clause in homeowners insurance work?
Short answer. The appraisal clause lets you or your insurer demand an outside process when you agree a loss is covered but disagree on how much it is worth. Each side picks an appraiser, the two appraisers choose an umpire, and an amount agreed to by any two of the three sets the amount of loss, with each side paying its own appraiser and splitting the umpire's cost.
How it works on a roof claim
- A disagreement on amount. For example, the insurer prices a repair of two slopes and your roofer documents damage on all four.
- Written demand. Either side sends a written request for appraisal under the policy.
- Appraisers chosen. Under common policy wording, each side names a competent and impartial appraiser within 20 days.
- Umpire chosen. The two appraisers pick an umpire. If they cannot agree within the time the policy allows, a judge can appoint one.
- Inspection and negotiation. The appraisers inspect, compare estimates and try to agree.
- Award. An amount signed by any two of the three becomes the amount of loss.
What it costs
You pay your appraiser, the insurer pays its appraiser, and the umpire's fees and other appraisal expenses are usually split equally. Appraiser fees vary, so get the fee arrangement in writing before you hire one.
What appraisal does and does not decide
Appraisal is built to settle the amount of loss. Whether the policy covers the damage at all is usually a coverage question for the insurer and, if needed, the courts. Policy wording varies, so read your own.
When to consider it
- You have solid documentation and the gap is large enough to justify appraiser fees.
- Supplements and a reinspection have not closed the gap.
- The disagreement is about price, scope or measurements, not about whether the damage is covered.
For a roof-specific walk-through, see the appraisal clause on roof claims. If the insurer denied the claim outright, start with what to do after a denial.