Glossary

Appraisal clause

A policy condition that lets either side demand a neutral panel to set the dollar amount of a loss when you and the insurer cannot agree on its value.

Also called: appraisal provision, appraisal process, invoking appraisal

The appraisal clause gives either you or the insurer a way to settle a disagreement over the amount of a loss without going to court. Under the standard ISO homeowners form, one side makes a written demand. Each side then names a competent, impartial appraiser within 20 days, and the two appraisers choose an umpire. If they cannot agree on one within 15 days, a judge of a court of record in the state where the home is located picks. If the appraisers agree on the amount, that is the award. If not, they submit their differences to the umpire, and agreement by any two of the three sets the amount. Each side pays its own appraiser and shares other costs.

Appraisal decides how much, not whether. Questions about coverage, such as whether a leak was sudden or an exclusion applies, are generally for the insurer or a court, although states differ on how far appraisers may go on causation.

The award is usually binding, so read your policy and any state amendatory endorsement before demanding it. Invoking appraisal does not automatically stop the clock on the suit limitation clause in every state. Consider a public adjuster or an attorney first; the guide on settling a claim value dispute covers when appraisal helps and when it does not.

Last reviewed October 10, 2026

In the index now

Related terms

Umpire The neutral third person who breaks the tie when the two appraisers in a claim appraisal cannot agree on the amount of a loss. Scope of loss The written list of damaged areas and repairs an adjuster decides are needed and covered, which becomes the basis for the estimate and the payment. Public adjuster A licensed claims professional hired by the policyholder, not the insurer, who documents and negotiates the claim for a fee, usually a share of the payout. Suit limitation clause The policy condition that sets a deadline, often one or two years from the date of loss, for filing a lawsuit against the insurer over a claim. Xactimate Estimating software from Verisk that adjusters and contractors use to price repairs line by line from regional unit-cost price lists.

Related guides

The appraisal clause: settling a claim value dispute How the appraisal clause works in a homeowners policy, what a panel can and cannot decide, what it costs, how state rules differ and when to demand it. Attorney fees and insurance litigation reform Who pays the lawyer in a home claim suit: the American rule, state fee-shifting statutes, Florida's repeal of one-way fees, and what changed for policyholders. Bad faith claim handling: what it means and what it doesn't What bad faith means in a home claim, how it differs from a low estimate or slow adjuster, what you must prove, how states differ and which evidence matters. Class actions against home insurers How class actions against homeowners insurers work, the labor depreciation cases that shaped them, what a settlement notice means, and when you should opt out. Deadlines to sue over a home insurance claim The ISO policy allows two years from the date of loss to sue. State law can cut that to 12 months or stretch it to five, and talks rarely stop the clock. Engineering reports and causation disputes When insurers and homeowners hire engineers, what causation reports contain, how to challenge one, and how to commission your own in a disputed home claim.

Related disasters

Hurricane Milton (2024) Milton hit Siesta Key, Florida, as a Category 3 on Oct. 9, 2024: 385,146 Florida claims, $20 billion insured (Aon). Notice windows closed; suits run 5 years.