How to Trigger the Appraisal Clause: A Step-by-Step Guide for Contractors Helping Clients

Your clients have a right written into their policy that most carriers will never mention. It’s called the appraisal clause. Here’s how to use it.

• The appraisal clause allows policyholders to demand a formal, binding dispute resolution process when they disagree with a carrier’s claim valuation.
• It must be invoked in writing, within any applicable deadlines, and after a genuine dispute has been established.
• The process requires selecting a qualified appraiser—the most important decision your client will make in the entire dispute.
• JustClaims serves as the policyholder’s appraiser and manages the full appraisal process from demand through award.

What the Appraisal Clause Says

While specific policy language varies, the standard appraisal clause follows a common structure: if the policyholder and carrier disagree on the amount of loss, either party may demand appraisal in writing. Each side appoints a competent, independent appraiser. The two appraisers attempt to agree on the amount of loss. If they can’t, they select a neutral umpire. Agreement of any two of the three (the two appraisers, or one appraiser and the umpire) constitutes a binding award

The critical phrase is “amount of loss.” Appraisal doesn’t resolve coverage disputes—it resolves valuation disputes. If the carrier has denied coverage entirely, appraisal may not be available until coverage is established. But for the vast majority of underpaid hail and wind claims, coverage isn’t in question. The dispute is about how much the loss is worth. That’s exactly what appraisal resolves.

Step-by-Step: How to Invoke Appraisal

Step 1: Confirm the dispute is ripe. Appraisal requires that a genuine dispute about the amount of loss has been established. Typically, this means the carrier has issued an estimate or denial and the policyholder disagrees. Document the disagreement clearly—in writing—before invoking.

Step 2: Check the policy for appraisal language and deadlines. Locate the appraisal provision in the policy (typically in the “Conditions” section). Note any deadlines for invoking the clause—some states and some policies impose time limits. In Texas, for example, case law has addressed timeliness extensively. When in doubt, invoke sooner rather than later.

Step 3: Send the written demand. The demand for appraisal must be in writing. It should be sent to the carrier’s designated claims contact via certified mail (return receipt requested) or email (just make sure to confirm receipt), or via any other method the policy specifies. Keep a copy and record the delivery confirmation. The demand should state: that the policyholder disputes the amount of loss, that they are invoking the appraisal provision, and that they are naming their appraiser. Most appraisal provisions require the carrier to name their appraiser or respond within 20 days of receipt of a written demand.

Step 4: Name your appraiser. Your demand letter should include the name and contact information of the policyholder’s chosen appraiser. This is the most consequential decision in the process. Select someone with documented expertise in the type of loss at issue—not a general contractor, not a friend with industry experience. A data-backed, experienced public adjuster or claims expert who knows how to build and defend an appraisal award.

Step 5: The umpire selection process. Once both appraisers are named, they attempt to agree on a neutral umpire. If they can’t agree, either party can petition the court to appoint one. JustClaims has an established network of qualified umpires and a clear protocol for this step—it rarely requires court involvement when both sides act in good faith.

What Happens After You Invoke It

After the demand is sent and both appraisers are named, the process moves to review and documentation. Each appraiser independently evaluates the loss—reviewing the property, the carrier’s estimate, the contractor’s documentation, and any supporting data. JustClaims brings our full storm intelligence and estimate analysis platform to every appraisal we handle.

The two appraisers then attempt to reach an agreed amount of loss. When they agree, the award is signed and submitted to the carrier for payment. When they can’t agree, the umpire steps in. An award signed by any two of the three participants is binding. Carriers must pay binding appraisal awards—and in most states, failure to pay a binding award exposes the carrier to bad faith liability.

“Invoking appraisal is not picking a fight. It’s using a legal right that your client’s policy guarantees them. The fight was started when the carrier wrote an estimate that doesn’t reflect the actual loss.”

In Summary

The appraisal clause is the most powerful tool available to property owners with underpaid claims—and it’s already in their policy. Most never use it because no one tells them it exists. As a contractor, being the person who knows this and can connect clients with the right help is a service that goes far beyond the roof.

💬 Ready to invoke appraisal on a client’s claim? JustClaims manages the full process. Contact us to discuss the claim.