What does it mean to invoke the appraisal clause?
What invoking commits you to
- Naming an appraiser within the policy's deadline and paying that appraiser.
- Sharing the umpire's cost and other appraisal expenses, typically half.
- Accepting a binding amount. Under most policy wording, the award signed by two of the three sets the amount of loss, whether it lands higher or lower than you hoped.
When the insurer invokes it
Insurers sometimes invoke appraisal themselves, often when a homeowner's or contractor's estimate is far above theirs. If you receive a demand, note the policy deadline, choose your appraiser with care, and do not ignore it. A party that refuses to take part can be asked by the other side to go to court to compel appraisal or have an umpire appointed.
When it makes sense to invoke
- Coverage was accepted, but the scope or price is clearly short.
- Supplements and a reinspection did not close the gap.
- The difference is large enough to justify appraiser and umpire fees.
When it does not
If the insurer denied the whole claim as not covered, invoking appraisal usually will not resolve that. A coverage dispute goes through reinspection, a complaint or litigation. See what to do when a roof claim is denied.
Some policies also expect you to have met other duties first, such as submitting a proof of loss, so check before sending the demand. The full roof picture is in the appraisal clause on a roof claim.