How the Insurance Appraisal Process Works

Step 1: Confirm that appraisal fits the dispute

Appraisal exists to answer one question: the amount of loss. It works when the carrier has accepted that the loss is covered and the disagreement is about scope, quantities or price. It does not work when the carrier says the damage is excluded, pre-existing or not caused by a covered peril; those are coverage questions for negotiation or, if necessary, a court. Read the carrier's letter carefully. "We have paid the reasonable cost of repair" is an amount dispute. "The damage is the result of wear and tear" is a coverage dispute.

Step 2: Read the appraisal clause

Find the Conditions section of the full policy. The appraisal clause will tell you who may demand appraisal, any time limit, how an umpire is chosen if the appraisers cannot agree, and how costs are split. For residential and personal auto policies issued or renewed on or after March 1, 2027, Texas requires the clause to give both sides a unilateral right to demand appraisal, with no impasse requirement, and to state the deadlines summarized on this page. Commercial and TWIA policies keep their own clauses.

Step 3: Demand appraisal in writing

Send a short letter to the carrier's claims department identifying the claim, invoking the appraisal provision and naming your appraiser. Deliver it in a way you can prove, such as certified mail plus email, and keep a copy. Our demand guide includes a sample letter. Under the 2027 rules the demand generally must be made before the policy's limitations period for filing suit runs, and special timing applies once a pre-suit notice is served or a lawsuit is filed.

Step 4: Both sides appoint appraisers

Each party hires its own appraiser and gives the other side the appraiser's name and contact information. The 2027 Texas rules allow 20 days. Appraisers must be competent for the type of loss, independent of the parties and disinterested in the outcome; on residential dwelling losses they must also be a licensed adjuster or public adjuster with estimating experience, an engineer or architect, or a qualified tradesperson. Ask any appraiser how they are paid. A percentage of the award is a conflict of interest.

Step 5: Inspection and the appraiser conference

The appraisers inspect the property, jointly or separately, and each prepares an itemized estimate. They then compare estimates line by line, agree on what they can and list what remains in dispute. A large share of most gaps closes at this stage. Under the 2027 rules the appraisers have 120 days from the demand to attempt agreement.

Step 6: Umpire selection

If items remain in dispute, the appraisers jointly choose an umpire, within 15 days under the 2027 rules. The umpire must meet the same qualification and independence standards. If the appraisers cannot agree on a person, either party may ask a county or district court where the property is located to appoint an umpire, after 10 days' written notice to the other side. A policy may also allow the policyholder to use an independent umpire-selection vendor, or the parties may agree in writing on another method.

Step 7: The award

Each appraiser submits its position on the disputed items to the umpire, who may inspect and then decides. An award signed by both appraisers, or by one appraiser and the umpire, sets the amount of loss and binds both parties. Under the 2027 rules an umpire award must issue within 240 days of the demand; if it does not, the umpire's engagement ends and a new umpire must be chosen within 15 days. The carrier then pays the award, less the deductible, prior payments and any depreciation the policy allows it to hold until repairs are complete.

What appraisal costs

Each party pays its own appraiser. The umpire's fee is typically split equally. We quote a flat or hourly fee in writing before you appoint us, based on the size and complexity of the loss. For most roof and water disputes the fee is small relative to the gap between the carrier's estimate and the real cost of repair.

Joseph DittmanAppraiser and licensed Texas public adjuster (Texas public adjuster license #3356839). Joseph serves as policyholder-appointed appraiser and as umpire on property losses across Texas. About