What is an appraisal clause?
Policies include an appraisal clause because disagreements about price are common and lawsuits are slow and expensive. Appraisal is a contract-based shortcut that focuses only on what the damage is worth.
Key features
- Either side can start it with a written demand once you disagree about the amount of loss.
- Two appraisers and an umpire. Each side chooses its own appraiser, and the appraisers choose an umpire to break ties.
- Two of three decide. An amount signed by any two of the three sets the amount of loss.
- Shared costs. Each side pays its own appraiser and splits the umpire's fees and other appraisal expenses.
- Amount, not coverage. Appraisal sets what the loss is worth. Whether the policy covers it is generally a separate question.
Not the same as a home appraisal
In real estate, an appraisal estimates a home's market value for a sale or loan. An insurance appraisal values a specific loss, like a hail-damaged roof, under the terms of your policy. The words overlap, but the processes are unrelated.
How it shows up on roof claims
Homeowners most often use appraisal when the insurer agrees there is storm damage but pays for less than the roof needs: a repair instead of a replacement, missing line items, or prices that are too low. Most homeowners first try a supplement and a reinspection, because those are faster and cost nothing.
Check before you rely on it
- The exact wording and deadlines in your policy's conditions and any state endorsements.
- Whether the size of the dispute justifies appraiser fees.
- Whether the real disagreement is about coverage, which appraisal may not resolve.
Read the appraisal clause on roof claims for the step by step process.