Appraisal and Umpire Demand (Policyholder)

APPRAISAL AND UMPIRE DEMAND — POLICYHOLDER TEMPLATE

TABLE OF CONTENTS

1. Formal Demand for Appraisal
2. Identification of Policy and Loss
3. Statement of Valuation Dispute
4. Nomination of Insured's Appraiser
5. Request for Carrier's Appraiser
6. Umpire Selection Framework
7. Scope of Appraisal
8. Timeline and Deadlines
9. Preservation of Bad Faith and Extra-Contractual Claims
10. Reservation of Rights
11. Demand for Response
12. Petition to Compel Appraisal
13. Appraisal Award Form
14. Practice Notes — Appraisal Fundamentals
15. Sources and References

PART I: FORMAL DEMAND FOR APPRAISAL

[Send via certified mail, return receipt requested, and email]

Date: [__/__/____]

VIA CERTIFIED MAIL AND EMAIL

To:
[________________________________]
[________________________________]
[________________________________]
[________________________________]
(Carrier name, Claims Department, address, and email)

From:
[________________________________]
[________________________________]
[________________________________]
[________________________________]
(Insured name or Counsel for Insured, address, and contact information)

Re: Formal Demand for Appraisal Under Policy Appraisal Clause
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
Insured Property: [________________________________]

1. FORMAL DEMAND FOR APPRAISAL

Dear [________________________________] (Claims Adjuster / Claims Manager):

This letter constitutes the formal written demand of [________________________________] ("Insured") for appraisal of the above-referenced loss pursuant to the appraisal clause contained in Section [________________________________] of Policy No. [________________________________] ("the Policy") issued by [________________________________] ("the Carrier").

The Insured and the Carrier have been unable to agree on the actual cash value and/or the amount of loss arising from the [________________________________] (describe peril — e.g., fire, windstorm, hail, water damage, theft) that occurred on or about [__/__/____] at the insured property located at [________________________________].

Pursuant to the Policy's appraisal provision, either party may demand that the dispute over the amount of loss be submitted to appraisal. The Insured hereby exercises that right and demands that the appraisal process commence immediately.

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

The Insured and the Carrier disagree on the amount of loss as follows:

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

The dispute involves the following specific items or categories of damage:

☐ Scope of repair/replacement needed
☐ Unit pricing of labor and/or materials
☐ Actual cash value depreciation calculations
☐ Replacement cost value calculations
☐ Additional living expense / loss of use amounts
☐ Contents / personal property valuation
☐ Code upgrade costs
☐ Overhead and profit
☐ Other: [________________________________]

4. NOMINATION OF INSURED'S APPRAISER

Pursuant to the Policy's appraisal clause, the Insured hereby nominates and appoints the following individual as its competent and disinterested appraiser:

The Insured's appraiser is competent and disinterested within the meaning of the Policy's appraisal clause. [He/She] has no financial interest in the outcome of this claim beyond the appraiser's fee and has no prior relationship with the Insured that would compromise independence.

5. REQUEST FOR CARRIER'S APPRAISER

The Insured requests that the Carrier promptly appoint its own competent and disinterested appraiser and notify the Insured of the appointment within twenty (20) days of receipt of this demand, or within such shorter time as the Policy or applicable state law requires.

Please provide the following information for the Carrier's appraiser:

☐ Full name
☐ Professional qualifications and licensing
☐ Firm affiliation
☐ Mailing address, telephone, and email
☐ Statement of disinterestedness

NOTE: The Carrier's appraiser must be truly "competent and disinterested." An appraiser who is employed by, retained by, or regularly engaged by the Carrier may not meet this standard. The Insured reserves the right to challenge the Carrier's appraiser selection on competency or partiality grounds.

6. UMPIRE SELECTION FRAMEWORK

Once both appraisers have been appointed, they shall attempt to agree on a competent and disinterested umpire within fifteen (15) days (or such time as the Policy provides).

Proposed Umpire Candidates (optional — Insured may propose candidates):

1. [________________________________] — [________________________________] (qualifications)
2. [________________________________] — [________________________________] (qualifications)
3. [________________________________] — [________________________________] (qualifications)

If the Appraisers Cannot Agree on an Umpire:

The standard fire policy provision — adopted in most jurisdictions — provides that if the two appraisers cannot agree on an umpire within fifteen (15) days, either party may request that a judge of a court of record in the state where the property is located select the umpire.

The Insured proposes the following procedure if the appraisers cannot agree:

☐ Each appraiser submits a list of three (3) qualified umpire candidates; the appraisers alternate strikes until one remains
☐ The appraisers jointly petition a judge of a court of record for umpire appointment
☐ The parties submit the umpire dispute to [________________________________] (name of ADR organization, if applicable)
☐ Other: [________________________________]

7. SCOPE OF APPRAISAL

The appraisal process is limited to determining the amount of loss and the actual cash value (or replacement cost value, if applicable) of the damaged property. The appraisal panel shall determine:

☐ The actual cash value of the damaged property at the time of loss
☐ The replacement cost value of the damaged property
☐ The cost to repair or replace each damaged item
☐ The amount of loss for each category of damage
☐ Depreciation amounts (if actual cash value basis applies)

The following matters are NOT within the scope of appraisal (and are reserved for judicial determination):

☐ Whether the loss is covered under the Policy
☐ Interpretation of Policy terms, conditions, or exclusions
☐ Whether the Carrier has acted in bad faith
☐ Whether the Carrier has violated applicable insurance regulations
☐ Application of Policy sublimits, deductibles, or coinsurance provisions (may be disputed — varies by jurisdiction)
☐ Causation of the loss (in most jurisdictions — some states allow limited causation inquiry)

PRACTICE NOTE: The scope of appraisal varies by jurisdiction. Some states (e.g., Florida, under Johnson v. Nationwide) allow appraisers to determine causation when the insurer admits some covered loss exists but disputes amount. Other states strictly limit appraisal to valuation only. Check your state's law.

8. TIMELINE AND DEADLINES

The Insured proposes the following timeline for the appraisal process:

NOTE: The Policy and/or applicable state law may specify deadlines. Where the Policy or statute is silent, the Insured proposes that the process be completed within sixty (60) days of the Carrier's appointment of its appraiser, absent agreement of the parties to extend.

9. PRESERVATION OF BAD FAITH AND EXTRA-CONTRACTUAL CLAIMS

THE INSURED EXPRESSLY PRESERVES ALL BAD FAITH AND EXTRA-CONTRACTUAL CLAIMS.

The Insured's invocation of the appraisal process does not waive, release, or compromise any claims the Insured may have against the Carrier for:

☐ Bad faith denial, delay, or underpayment of the claim
☐ Violation of state unfair claims settlement practices statutes
☐ Violation of state prompt payment of claims statutes
☐ Breach of the implied covenant of good faith and fair dealing
☐ Unfair or deceptive trade practices
☐ Penalties, interest, and attorney's fees under applicable state law
☐ Any other extra-contractual or statutory remedies

The Insured specifically does not waive the right to pursue litigation against the Carrier on any basis, including but not limited to the Carrier's handling of this claim prior to, during, and after the appraisal process.

PRACTICE NOTE: In Texas, Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019) confirmed that payment of an appraisal award does not insulate an insurer from TPPCA damages under Chapter 542 of the Texas Insurance Code. Similar principles apply in other states. Always preserve these rights expressly.

10. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights and remedies under the Policy, including but not limited to the right to dispute the Carrier's coverage position
• All rights and remedies under applicable state insurance law
• The right to challenge the appraisal process or award on grounds of fraud, mistake, misconduct, partiality, or failure to follow the Policy's appraisal provisions
• The right to seek judicial review of the appraisal award
• The right to recover attorney's fees, costs, and interest as provided by applicable law
• All rights not expressly waived herein

11. DEMAND FOR RESPONSE

The Insured demands that the Carrier respond to this demand in writing within twenty (20) days of receipt, confirming:

1. The Carrier's agreement to proceed with appraisal
2. The name and contact information of the Carrier's appointed appraiser
3. The Carrier's proposed timeline for the appraisal process

Failure to timely respond or to participate in the appraisal process in good faith may constitute:

• A waiver of the Carrier's right to invoke appraisal at a later date
• Evidence of bad faith claim handling
• Grounds for judicial intervention, including an order compelling appraisal
• A violation of applicable unfair claims settlement practices statutes

Please direct all correspondence regarding this matter to:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
(Insured or Counsel contact information)

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL

[Use if Carrier refuses to participate in appraisal or fails to timely appoint an appraiser]

IN THE [________________________________] COURT
[________________________________] COUNTY, [________________________________]

MOTION TO COMPEL APPRAISAL

COMES NOW [________________________________] ("Petitioner" / "Insured"), by and through undersigned counsel, and respectfully moves this Court to enter an Order compelling [________________________________] ("Respondent" / "Carrier") to participate in the appraisal process as provided in the parties' insurance policy, and in support thereof states as follows:

I. BACKGROUND

1. Petitioner is the named insured under Policy No. [________________________________], a [________________________________] policy issued by Respondent, effective [__/__/____] through [__/__/____].

2. On or about [__/__/____], Petitioner's property located at [________________________________] sustained damage from [________________________________] (describe peril).

3. Petitioner timely reported the loss and submitted a claim to Respondent, which was assigned Claim No. [________________________________].

4. After investigation, Respondent valued the loss at $[________________________________]. Petitioner's independent estimate of the loss is $[________________________________], a difference of $[________________________________].

5. The Policy contains an appraisal clause at Section [________________________________], which provides, in relevant part:

"[Insert verbatim appraisal clause language from the Policy]"

6. On [__/__/____], Petitioner made written demand for appraisal pursuant to the Policy's appraisal clause.

7. Petitioner nominated [________________________________] as its competent and disinterested appraiser.

8. Despite proper demand, Respondent has:

☐ Failed to appoint an appraiser within the time required by the Policy
☐ Refused to participate in the appraisal process
☐ Appointed an appraiser who is not competent and/or disinterested
☐ Failed to respond to the demand in any manner
☐ Other: [________________________________]

II. LEGAL STANDARD

9. The appraisal clause in the Policy is a valid and enforceable contractual provision. Appraisal clauses have long been recognized as distinct from arbitration agreements and are routinely enforced by courts when a genuine dispute exists regarding the amount of loss.

10. Courts routinely compel appraisal when: (a) the policy contains an appraisal clause; (b) a party has made a written demand for appraisal; (c) a genuine dispute exists regarding the amount of loss; and (d) the opposing party has refused or failed to participate.

11. The dispute between the parties concerns the amount of loss — a matter squarely within the scope of appraisal — and not coverage, liability, or policy interpretation.

III. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that this Court enter an Order:

A. Compelling Respondent to participate in appraisal as provided in the Policy;

B. Requiring Respondent to appoint a competent and disinterested appraiser within [____] days of the Court's Order;

C. Providing that if Respondent fails to appoint an appraiser within [____] days, the Court shall appoint an appraiser on Respondent's behalf;

D. Authorizing the Court to appoint an umpire if the two appraisers cannot agree on one within fifteen (15) days;

E. Awarding Petitioner attorney's fees and costs incurred in bringing this Motion; and

F. Granting such other and further relief as the Court deems just and equitable.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Bar Number: [________________________________]

Firm Name: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on [__/__/____], a true and correct copy of the foregoing Motion to Compel Appraisal was served upon the following by [________________________________] (method of service):

[________________________________]
[________________________________]
[________________________________]
(Opposing counsel or party name and address)

Signature: ____________________________________

PART III: APPRAISAL AWARD FORM

APPRAISAL AWARD

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

The undersigned, having been duly appointed and having inspected the damaged property, reviewed all relevant documentation, and deliberated in good faith, hereby make the following award:

Actual Cash Value / Amount of Loss:

Total Replacement Cost Value: $[________________________________]

Total Depreciation: $[________________________________]

Total Actual Cash Value: $[________________________________]

SIGNATURES

This award is made by agreement of:

☐ Both appraisers (unanimous award)
☐ One appraiser and the umpire (majority award)

Insured's Appraiser:

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award
☐ Dissents from this award

Carrier's Appraiser:

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award
☐ Dissents from this award

Umpire (if applicable):

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award

14. PRACTICE NOTES — APPRAISAL FUNDAMENTALS

A. What Is Appraisal?

Appraisal is a contractual dispute resolution mechanism found in most property insurance policies. It provides a streamlined process for resolving disagreements about the amount of loss without full-scale litigation. Unlike arbitration, appraisal is limited in scope — it determines "how much," not "whether" the loss is covered.

B. Appraisal vs. Arbitration

Courts in most jurisdictions distinguish appraisal from arbitration:

• Appraisal resolves valuation disputes (amount of loss, actual cash value)
• Arbitration can resolve legal disputes (coverage, liability, contract interpretation)
• Appraisal awards are generally binding on the amount of loss but do not determine coverage
• Arbitration awards are typically subject to limited judicial review under state arbitration statutes

Key cases:

• In re Allstate County Mutual Ins. Co., 85 S.W.3d 193 (Tex. 2002) — "Appraisal is not arbitration"
• State Farm Fire & Cas. Co. v. Licea, 685 So. 2d 1285 (Fla. 1996) — Appraisal clause not void for lack of mutuality

C. Scope: What Appraisers Can and Cannot Decide

Within scope (most jurisdictions):

• Amount of loss for each covered item
• Actual cash value of damaged property
• Replacement cost value
• Depreciation amounts
• Cost of repair vs. replacement

Outside scope (most jurisdictions):

• Whether loss is covered under the policy
• Policy interpretation and exclusion application
• Whether the insurer acted in bad faith
• Legal questions and contract construction

Gray areas (varies by jurisdiction):

• Causation — some states allow appraisers to allocate damage between covered and uncovered causes; others reserve causation for courts
• Matching — whether undamaged property must be replaced to match repaired areas
• Code upgrades — whether code compliance costs are within the appraisal scope

D. Waiver of Appraisal Rights

An insurer or insured may waive the right to demand appraisal through:

• Unreasonable delay in demanding appraisal after a dispute arises
• Conduct inconsistent with the right to appraisal (e.g., filing suit without first demanding appraisal)
• Express waiver in writing
• Participation in litigation that prejudices the other party

E. Challenging an Appraisal Award

Appraisal awards may be challenged on limited grounds, including:

• Fraud or misconduct by an appraiser or umpire
• Partiality or bias of the umpire
• Material mistake of fact
• The appraisers exceeded the scope of appraisal (e.g., decided coverage questions)
• Failure to follow the Policy's appraisal procedures

F. Appraiser Fees and Costs

Under the standard appraisal clause, each party bears the cost of its own appraiser, and the parties share the cost of the umpire equally. However, check the specific Policy language — some policies allocate costs differently.

15. SOURCES AND REFERENCES

General Appraisal Law

• Standard Fire Policy Appraisal Clause (adopted in most states with variations)
• IRMI, "Appraisal Under the Homeowners Policy" — https://www.irmi.com/articles/expert-commentary/appraisal-under-the-homeowners-policy
• National Law Review, "An Appraisal of the Appraisal Remedy in Property Insurance" — https://natlawreview.com/article/appraisal-appraisal-remedy-property-insurance
• Merlin Law Group, Property Insurance Coverage Law Blog — https://www.propertyinsurancecoveragelaw.com/

Key Cases (Multi-Jurisdictional)

• In re Allstate County Mutual Ins. Co., 85 S.W.3d 193 (Tex. 2002) — Appraisal is not arbitration
• State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009) — Scope of appraisal
• Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019) — Appraisal and TPPCA claims
• State Farm Fire & Cas. Co. v. Licea, 685 So. 2d 1285 (Fla. 1996) — Appraisal clause mutuality
• Johnson v. Nationwide Mutual Ins. Co., 828 So. 2d 1021 (Fla. 2002) — Causation in appraisal
• Rogers v. State Farm Fire & Cas. Co., 984 So. 2d 382 (Ala. 2007) — Coverage vs. valuation
• Kirkwood v. California State Auto. Ass'n, 193 Cal. App. 4th 49 (2011) — Appraisal vs. statutory interpretation

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. Insurance appraisal procedures vary significantly by state. An attorney licensed in the applicable jurisdiction should review and customize this template before use. Laws and procedures may have changed since the last update of this template.

Last updated: 2026-02-26