When policyholders and insurance companies disagree on the amount of damage or the value of a loss, it can lead to frustration, delays, and unnecessary stress. Fortunately, most property insurance policies include a provision known as the Appraisal Clause, which provides a structured and effective way to resolve these disputes—without going to court.

At Caliber Claim Adjusters, we guide our clients through this process to ensure their rights are protected and they receive the full compensation they deserve. Below is a clear breakdown of how the appraisal process works and why it is such a powerful tool for policyholders.

What Is the Insurance Appraisal Process?

The appraisal process is a form of alternative dispute resolution used when the policyholder and the insurance company cannot agree on the value of a loss.

This provision allows each side to appoint an independent appraiser. If the two appraisers cannot reach an agreement, they jointly select a third party—called an umpire—who will help make the final determination.

Important Note:
The appraisal process does not determine coverage or liability. It strictly determines the value of the damage or loss.

When Can You Invoke Appraisal?

Appraisal is typically invoked after coverage has been accepted, but there is a disagreement regarding the amount owed.

Common situations where appraisal may be appropriate include:

• The insurance company undervalues your damages
• Repair estimates are significantly lower than contractor bids
• Necessary repairs are missing from the insurance estimate
• There is disagreement about the scope of damage

How the Appraisal Process Works

1. Demand for Appraisal

Either the policyholder or the insurance company can initiate appraisal by submitting a written demand in accordance with the policy.

2. Selection of Appraisers

Each party selects a qualified and impartial appraiser. Choosing the right appraiser is critical, as experience directly impacts the outcome.

3. Agreement on an Umpire

The two appraisers attempt to agree on a neutral third party—the umpire—who will step in if needed.

4. Evaluation of the Loss

Each appraiser independently inspects the property, reviews documentation, and prepares their valuation.

5. Resolution

• If both appraisers agree → the decision is binding
• If they disagree → the umpire reviews both sides
• Any agreement signed by two of the three parties becomes binding

Pros and Cons of the Appraisal Process

Pros:

• Faster than litigation
• More cost-effective than hiring attorneys
• Objective resolution of valuation disputes
• Often results in a higher and more accurate settlement

Cons:

• Does not resolve coverage disputes
• Appraiser and umpire fees may apply
• Binding decision with limited appeal options

Why You Need a Public Adjuster

While the appraisal process is designed to be impartial, the outcome heavily depends on who represents your interests.

At Caliber Claim Adjusters, we help clients:

• Determine if appraisal is the right strategy
• Select experienced and reputable appraisers
• Prepare strong, well-documented claims
• Negotiate effectively throughout the process

Our goal is simple: protect your interests and maximize your claim recovery.

Final Thoughts

The appraisal process can be one of the most powerful tools available to policyholders when facing a dispute with their insurance company—especially when handled by experienced professionals.

If you’re dealing with an underpaid or disputed claim, don’t settle for less than what you’re entitled to.

Let Caliber Claim Adjusters guide you through the process and fight for the compensation you deserve.