The Property Insurance Appraisal Clause
Already in your policy, binding on amount, and far faster and cheaper than a lawsuit. Appraisal is the most under-used tool a property owner has - and the most misunderstood.
Most property policies contain a clause that hardly anyone reads, and it is one of the most useful things in the document. It looks roughly like this:
Three people, a defined process, and a binding number - without filing suit.
What appraisal is for, and what it is not for
It resolves the AMOUNT of loss. How much damage there is, and what it costs to repair or replace it.
It does not resolve COVERAGE. Whether the peril is covered, whether an exclusion applies, whether the policy was in force, whether a condition was breached - none of that is an appraisal question.
That distinction decides whether appraisal is your route. If the carrier says "this is hail damage and it is worth $40,000" and you say "it is hail damage and it is worth $120,000," appraisal is designed precisely for you. If they say "this is wear and tear and nothing is owed," it is not - that is a coverage fight, and it needs a rebuttal or a lawyer.
In practice the line blurs, because causation arguments sit close to the boundary and carriers sometimes reframe an amount dispute as a coverage one to avoid appraisal. That is worth pushing back on.
How it actually runs
1. Written demand. Either side can invoke it. It must be in writing and it should identify the claim, the disputed items and the fact that coverage is not in dispute.
2. Each side names an appraiser - typically within 20 days. Yours should be independent, competent and genuinely familiar with your type of property. How to choose one.
3. The two appraisers select an umpire. If they cannot agree - often within 15 days - either side may ask a district court judge in the judicial district where the loss occurred to appoint one.
4. The appraisers inspect and exchange positions. Frequently this is where it ends: two competent appraisers looking at the same roof with the same documentation often land close enough to agree, and the umpire is never needed.
5. Where they disagree, the umpire decides. An award signed by any two of the three is binding on the amount.
6. The award is itemised, separating actual cash value and replacement cost by item, so the carrier can apply depreciation, the deductible and any policy limits.
7. The carrier pays according to the award, applying its policy terms - deductible, depreciation holdback, limits - and preserving any coverage defences it reserved.
Why it is worth using
Speed. Months rather than years.
Cost. Each side pays its own appraiser, and the umpire's fee is normally shared. Compare that with litigation.
Expertise. The decision is made by people who assess property damage for a living, not by a jury.
It is already yours. No new agreement required. It is in the contract you already have.
What to do before you invoke it
- Confirm coverage is genuinely agreed. Get it in writing if you can.
- Have your scope finished. Appraisal is not a place to start building your case; it is where you present it. Line items, photographs, code citations, real local bids.
- Read your own clause - the deadlines and the fee arrangement vary, and some policies have been amended by endorsement.
- Understand what you are giving up. An award is binding on amount. If your scope is weak, you are binding yourself to a weak number.
Who we are in this
Bellator does both sides of this work. We represent policyholders as their appraiser, and we serve as umpire where an impartial third is needed. Those are genuinely different roles - the umpire is neutral and belongs to neither party - and the distinction matters to how an appraisal is run properly.
If you have a claim where the carrier agrees it is covered and the number is simply wrong, tell us about it. Whether appraisal is your best route is a short conversation, and there are claims where the answer is no.
The rest of this guide
Keep reading
Appraisal Or Lawsuit?
One question decides it: are you arguing about whether it is covered, or about how much it is worth? Get that wrong and you spend a year in the wrong process.
AppraisalChoosing Your Appraiser, And What The Umpire Does
Your appraiser is your advocate on the amount. The umpire is nobody's. Confusing the two is the most common way an appraisal goes badly for a property owner.
Hail And StormColorado Hail Damage Roof Insurance Claims
Colorado is hit by more damaging hail than almost anywhere in the country. This is the whole claim, start to finish - what the adjuster is looking at, what gets missed, what your policy actually owes, and where owners lose money without realising it.