APPRAISAL AND UMPIRE DEMAND — ALABAMA

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. Carrier's Appraiser Request
6. Umpire Selection Framework
7. Scope of Appraisal Under Alabama Law
8. Timeline and Deadlines
9. Preservation of Bad Faith and Statutory Claims
10. Reservation of Rights
11. Demand for Response
12. Petition for Writ of Mandamus to Compel Appraisal
13. Appraisal Award Form
14. Alabama-Specific Practice Notes
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 amount of loss arising from the [________________________________] (describe peril — e.g., tornado, windstorm, hail, fire) that occurred on or about [__/__/____] at the insured property located at [________________________________].

The dispute between the parties is a valuation dispute — not a coverage dispute. The Carrier has [acknowledged coverage for this loss / has not denied coverage for this loss], and the disagreement pertains solely to the extent and value of the covered damage. This is precisely the type of dispute that the Policy's appraisal clause is designed to resolve. See Cole v. Owners Ins. Co., 277 So. 3d 898 (Ala. 2018) (appraisal appropriate where parties agree loss is covered but disagree about extent and value).

Pursuant to the Policy's appraisal provision, either party may demand that the valuation dispute be submitted to appraisal. The Insured hereby exercises that contractual right.

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

The parties agree that a [________________________________] (e.g., tornado, fire, windstorm) occurred and that the resulting damage is [covered / potentially covered] under the Policy. The dispute pertains solely to the extent and value of the loss:

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

Specific disputed items:

☐ Scope of structural damage and repair needed
☐ Unit pricing of labor and materials
☐ Actual cash value depreciation calculations
☐ Replacement cost value calculations
☐ Contents / personal property valuation
☐ Additional living expense / loss of use
☐ 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 above-named appraiser is competent and disinterested within the meaning of the Policy. [He/She] has no ownership interest in, financial relationship with, or employment by the Insured and has no financial interest in the outcome of this claim beyond the appraiser's fee.

5. CARRIER'S APPRAISER REQUEST

The Insured requests that the Carrier appoint its own competent and disinterested appraiser and provide written notification to the Insured within twenty (20) days of receipt of this demand (or such shorter period as the Policy requires).

Please provide:

☐ Full name of the Carrier's appraiser
☐ Professional qualifications and licensing
☐ Firm affiliation
☐ Mailing address, telephone, and email
☐ Statement confirming the appraiser is competent and disinterested

ALABAMA PRACTICE NOTE: An appraiser who is a regular employee or retained consultant of the Carrier may lack the independence required by the "disinterested" standard. Alabama courts may scrutinize the Carrier's appraiser selection for actual or apparent bias.

6. UMPIRE SELECTION FRAMEWORK

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

Proposed Umpire Candidates:

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

If the Appraisers Cannot Agree on an Umpire:

Under the standard fire policy appraisal clause, if the appraisers cannot agree on an umpire within fifteen days, either party may request that a judge of a court of record select the umpire. In Alabama, this would be a Circuit Court judge in the county where the property is located.

The Insured proposes:

☐ Each appraiser submits a list of three (3) qualified umpire candidates; they alternate strikes until one remains
☐ Either party petitions the Circuit Court of [________________________________] County, Alabama, for umpire appointment
☐ Other: [________________________________]

7. SCOPE OF APPRAISAL UNDER ALABAMA LAW

Alabama courts have drawn a clear line between what appraisers may and may not decide:

Within the Scope of Appraisal (Amount/Value Questions):

☐ The extent of physical damage to the property
☐ The cost to repair or replace each damaged item
☐ The actual cash value of damaged property
☐ The replacement cost value
☐ Depreciation amounts
☐ Total amount of loss

Outside the Scope of Appraisal (Coverage/Liability Questions):

☐ Whether the loss is covered under the Policy
☐ Whether the damage was caused by a covered peril
☐ Interpretation of Policy terms, conditions, or exclusions
☐ Liability questions of any kind
☐ Bad faith or claims handling conduct

KEY ALABAMA CASE LAW:

Rogers v. State Farm Fire & Cas. Co., 984 So. 2d 382 (Ala. 2007): The Alabama Supreme Court held that "appraisers are not vested with the authority to decide questions of coverage and liability." The appraisal "sets only the amount of loss; it does not resolve issues of causation or coverage." Disputes about what caused certain damage (e.g., whether damage to brick veneer was caused by the tornado or by pre-existing conditions) are "within the exclusive purview of the courts, not the appraisers."

Cole v. Owners Ins. Co., 277 So. 3d 898 (Ala. 2018): The court permitted appraisal where "the parties agree that a fire occurred and that things damaged by the fire would be covered under the Policy" and they only disagreed about "the extent and value of the loss."

PRACTICAL IMPACT: If the Carrier claims that some items of damage were not caused by the covered peril, that is a coverage dispute for the courts, not a valuation question for appraisers. Structure the appraisal demand to isolate the valuation dispute from any causation/coverage arguments.

8. TIMELINE AND DEADLINES

Alabama does not have a statute prescribing appraisal deadlines — the Policy controls:

9. PRESERVATION OF BAD FAITH AND STATUTORY CLAIMS

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

Alabama recognizes the tort of bad faith refusal to pay an insurance claim. The Insured's participation in appraisal does not waive any claims for:

☐ Bad faith failure to investigate, delay, or underpayment — National Savings Life Ins. Co. v. Dutton, 419 So. 2d 1357 (Ala. 1982) (establishing the normal bad faith test in Alabama)
☐ Bad faith refusal to settle — an insurer may act in bad faith by failing to properly investigate a claim, failing to subject a claim to a cognitive evaluation, or by otherwise lowballing the claim
☐ Violations of Alabama insurance regulations, including Ala. Admin. Code R. 482-1-125 (Unfair Claim Settlement Practices)
☐ Breach of contract
☐ Consequential damages, punitive damages, and attorney's fees as provided by Alabama law

ALABAMA PRACTICE NOTE: Under Alabama's bad faith framework, the Insured must generally show that the insurer had no legitimate or arguable reason for denying or underpaying the claim. The appraisal award itself may become evidence that the Carrier's pre-appraisal valuation was unreasonable, supporting a bad faith claim.

10. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights and remedies under the Policy
• All rights and remedies under Alabama insurance law
• The right to challenge the appraisal award on grounds of fraud, mistake, misconduct, or partiality
• The right to seek judicial review of the appraisal award
• The right to pursue bad faith and extra-contractual claims
• The right to recover punitive damages, attorney's fees, and costs as provided by Alabama law
• All rights not expressly waived herein

11. DEMAND FOR RESPONSE

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

1. The Carrier's agreement to proceed with appraisal
2. The name and qualifications of the Carrier's appraiser
3. The Carrier's proposed timeline

Failure to timely respond or participate may constitute:

• Waiver of the Carrier's appraisal rights
• Evidence of bad faith claim handling
• Grounds for a petition for writ of mandamus compelling appraisal

Please direct all correspondence to:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION FOR WRIT OF MANDAMUS TO COMPEL APPRAISAL

[In Alabama, mandamus is the established procedural vehicle for compelling appraisal]

IN THE CIRCUIT COURT OF [________________________________] COUNTY, ALABAMA

PETITION FOR WRIT OF MANDAMUS TO COMPEL APPRAISAL

COMES NOW [________________________________] ("Petitioner"), by and through undersigned counsel, and petitions this Court for a writ of mandamus compelling [________________________________] ("Respondent") to participate in the appraisal process provided in the parties' insurance policy, and states:

I. INTRODUCTION

1. This Petition seeks to enforce the appraisal clause in a [________________________________] insurance policy. The Alabama Supreme Court has consistently recognized that appraisal clauses are valid and enforceable contractual provisions. When a genuine dispute exists over the amount of loss, and a party has properly invoked the appraisal clause, mandamus is the appropriate remedy to compel the recalcitrant party's compliance.

II. FACTS

2. Petitioner is the named insured under Policy No. [________________________________] issued by Respondent.

3. On or about [__/__/____], Petitioner's property at [________________________________] sustained damage from [________________________________].

4. Respondent acknowledged the claim and valued the loss at $[________________________________]. Petitioner estimates the loss at $[________________________________].

5. The dispute is about the amount of loss, not coverage. [The Carrier has acknowledged that the loss is covered / The Carrier has not denied coverage.]

6. On [__/__/____], Petitioner made written demand for appraisal and appointed [________________________________] as its competent and disinterested appraiser.

7. Respondent has [refused to participate / failed to appoint an appraiser / failed to respond].

III. LEGAL STANDARD

8. The Alabama Supreme Court has held that mandamus is an appropriate remedy to compel appraisal under an insurance policy appraisal clause. The standard requires: (a) a clear legal right to the relief sought; (b) an imperative duty on the respondent to act; (c) no adequate remedy at law; and (d) the proper court in which to file.

9. Appraisal is not arbitration in Alabama. Alabama courts have "never held that 'appraisal' is the same procedure as 'arbitration.'" Accordingly, the Alabama Arbitration Act does not apply, and the court reviews the matter under contract law principles.

10. Appraisal is appropriate here because the dispute concerns the extent and value of the loss — not coverage or causation. Cole v. Owners Ins. Co., 277 So. 3d 898 (Ala. 2018).

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that this Court:

A. Issue a writ of mandamus compelling Respondent to participate in appraisal;

B. Require Respondent to appoint a competent and disinterested appraiser within [____] days;

C. If Respondent fails to comply, appoint an appraiser on Respondent's behalf;

D. Appoint an umpire if the appraisers cannot agree within fifteen (15) days;

E. Award Petitioner attorney's fees and costs;

F. Grant such other relief as the Court deems just.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Bar Number: [________________________________]

Firm: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on [__/__/____], a true and correct copy of the foregoing Petition was served upon:

[________________________________]
[________________________________]
[________________________________]

by [________________________________] (method of service).

Signature: ____________________________________

PART III: APPRAISAL AWARD FORM — ALABAMA

APPRAISAL AWARD

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

The undersigned, having been duly appointed, having inspected the property, reviewed documentation, and deliberated, hereby award the amount of loss. This award determines only the amount of loss and does not resolve any coverage, liability, or causation questions. Rogers v. State Farm Fire & Cas. Co., 984 So. 2d 382 (Ala. 2007).

SIGNATURES

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

Insured's Appraiser:

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

Printed Name: [________________________________]

☐ Agrees ☐ Dissents

Carrier's Appraiser:

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

Printed Name: [________________________________]

☐ Agrees ☐ Dissents

Umpire (if applicable):

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

Printed Name: [________________________________]

☐ Agrees

14. ALABAMA-SPECIFIC PRACTICE NOTES

A. No Standalone Appraisal Statute

Unlike Alaska (which mandates appraisal by statute), Alabama does not have a standalone appraisal statute. Appraisal rights in Alabama arise from the policy language itself, typically tracking the standard fire policy appraisal clause. Practitioners must review the specific policy's appraisal provision carefully.

B. The Rogers Framework: Valuation vs. Coverage

Rogers v. State Farm Fire & Cas. Co., 984 So. 2d 382 (Ala. 2007) is the foundational case. Key principles:

• Appraisers determine amount of loss — courts determine coverage and causation
• If the dispute is over whether damage was caused by a covered peril (e.g., tornado vs. pre-existing settlement), that is a coverage/causation question for the courts
• If the parties agree on coverage but disagree on how much the covered damage costs to repair, that is a valuation question for appraisers

C. Appraisal Is Not Arbitration

Alabama courts consistently distinguish appraisal from arbitration. The Alabama Arbitration Act does not apply to appraisal proceedings. This matters because:
- Arbitration awards enjoy broad immunity from judicial review
- Appraisal awards may be challenged more readily on grounds of fraud, mistake, or exceeding scope
- Procedural requirements for arbitration (e.g., discovery rights, hearing procedures) do not apply to appraisal

D. Mandamus as the Enforcement Vehicle

In Alabama, the established procedural vehicle for compelling appraisal is a petition for writ of mandamus, typically filed in Circuit Court. The petitioner must show a clear legal right to appraisal and that the respondent has an imperative duty to participate.

E. Bad Faith Considerations

Alabama bad faith law (Dutton test) requires the insured to show:
1. An insurance contract between the parties and a breach by the insurer
2. An intentional refusal to pay the insured's claim
3. The refusal was not based on a debatable reason — i.e., directed verdict would be proper on the contract claim
4. The insurer's intentional failure to determine the existence of any lawful basis for its refusal

An appraisal award that significantly exceeds the Carrier's pre-appraisal estimate may serve as evidence that the Carrier's original valuation was not based on a reasonable investigation or legitimate assessment.

F. Potential Waiver Issues

An insurer may waive its right to demand appraisal by:
- Unreasonable delay after the dispute arises
- Filing suit or engaging in litigation conduct inconsistent with appraisal
- Conduct showing an intent to abandon the contractual appraisal process

15. SOURCES AND REFERENCES

Alabama Case Law

• Rogers v. State Farm Fire & Cas. Co., 984 So. 2d 382 (Ala. 2007) — https://caselaw.findlaw.com/court/al-supreme-court/1438820.html
• Cole v. Owners Ins. Co., 277 So. 3d 898 (Ala. 2018)
• National Savings Life Ins. Co. v. Dutton, 419 So. 2d 1357 (Ala. 1982) — Bad faith standard
• State Farm Fire & Cas. Co. v. Slade, 747 So. 2d 293 (Ala. 1999)

Alabama Regulations

• Ala. Admin. Code R. 482-1-125 — Unfair Claim Settlement Practices — https://aldoi.gov/pdf/legal/125r-2014.pdf
• Alabama Department of Insurance — https://aldoi.gov/

Legal Commentary

• Swift Currie, "The First Party Report: The Appraisal Clause in Alabama" (Winter 2022) — https://www.swiftcurrie.com/the-first-party-report-winter-2022-brandon-clapp
• Merlin Law Group, "Is Appraisal Limited to a Dispute About the Value of Agreed Damage? What Is the Rule In Alabama?" — https://www.propertyinsurancecoveragelaw.com/blog/is-appraisal-limited-to-a-dispute-about-the-value-of-agreed-damage-what-is-the-rule-in-alabama/

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. Alabama insurance appraisal procedures are governed by the specific policy language and Alabama case law. An attorney licensed in Alabama 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