Appraisal and Umpire Demand (Policyholder) — California

APPRAISAL AND UMPIRE DEMAND — CALIFORNIA

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 — 20-Day Statutory Deadline
6. Umpire Selection Framework
7. Scope of Appraisal Under California Law
8. Informal Nature of Proceedings
9. Timeline and Statutory Deadlines
10. Preservation of Bad Faith and Statutory Claims
11. Reservation of Rights
12. Demand for Response
13. Petition to Compel Appraisal
14. Appraisal Award Form
15. California-Specific Practice Notes
16. 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 Pursuant to California Insurance Code § 2071
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 California Insurance Code § 2071 and the appraisal clause contained in the Policy.

California Insurance Code § 2071 sets forth the California Standard Form Fire Insurance Policy, which includes the following appraisal provision:

"In case the insured and this Company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand."

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

The Insured hereby makes written demand for appraisal and requires the Carrier to select a competent and disinterested appraiser and notify the Insured within twenty (20) days of this demand, as mandated by CIC § 2071.

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

The parties disagree on the actual cash value and/or amount of loss:

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

Specific disputed items:

☐ Scope of structural damage and repair/replacement
☐ Actual cash value calculations under CIC § 2051
☐ Replacement cost value under CIC § 2051.5
☐ Depreciation methodology and amounts
☐ Contents / personal property valuation
☐ Additional living expense (ALE)
☐ Code upgrade / ordinance or law costs
☐ Landscaping and hardscaping
☐ Overhead and profit
☐ Smoke, ash, or soot damage extent
☐ Other: [________________________________]

4. NOMINATION OF INSURED'S APPRAISER

Pursuant to CIC § 2071, the Insured hereby selects the following competent and disinterested appraiser:

The above-named appraiser is competent and disinterested within the meaning of CIC § 2071. The appraiser has no financial interest in the outcome of this claim beyond the appraiser's fee.

5. CARRIER'S APPRAISER — 20-DAY STATUTORY DEADLINE

Under CIC § 2071, the Carrier must select a competent and disinterested appraiser and notify the Insured within TWENTY (20) DAYS of this written demand.

The statutory deadline for the Carrier to notify the Insured of its appraiser selection is: [__/__/____] (20 days from date of demand).

Please provide:

☐ Full name of the Carrier's appraiser
☐ Professional qualifications
☐ Statement that the appraiser is competent and disinterested
☐ Contact information

NOTE: CIC § 2071 requires that the appraiser be "competent and disinterested." A staff adjuster, regular vendor, or appraiser with a financial relationship to the Carrier may not satisfy this standard. The Insured reserves the right to challenge any appointment that does not meet the statutory requirement.

6. UMPIRE SELECTION FRAMEWORK

Under CIC § 2071, the two appraisers shall first select a competent and disinterested umpire. If the appraisers fail to agree on an umpire within fifteen (15) days, either party may request that a judge of a court of record in the state in which the property covered is located select the umpire.

Proposed Umpire Candidates:

1. [________________________________] — [________________________________]
2. [________________________________] — [________________________________]
3. [________________________________] — [________________________________]

If the Appraisers Cannot Agree on an Umpire Within 15 Days:

The Insured will petition the Superior Court of California, County of [________________________________], for appointment of an umpire pursuant to CIC § 2071.

The Insured proposes the following pre-petition procedure:

☐ Each appraiser submits a list of three (3) qualified umpire candidates
☐ The appraisers alternate strikes until one remains
☐ If this process fails, either party may petition the Superior Court

7. SCOPE OF APPRAISAL UNDER CALIFORNIA LAW

California law strictly limits the scope of appraisal. Under CIC § 2071, the appraisers' role is to appraise "the loss, stating separately actual cash value and loss to each item." The seminal case is Kirkwood v. California State Auto. Ass'n, 193 Cal. App. 4th 49 (2011).

Within Scope:

☐ The actual cash value of the damaged property at the time of loss
☐ The amount of loss to each item of damaged property
☐ The replacement cost value (if applicable)
☐ Depreciation amounts
☐ Cost to repair or replace

Outside Scope:

☐ Interpretation of CIC § 2051 (what "actual cash value" means as a legal matter)
☐ Interpretation of CIC § 2051.5 (replacement cost provisions)
☐ Whether the loss is covered under the Policy
☐ Application of Policy exclusions
☐ Causation of the loss
☐ Bad faith or claims handling conduct
☐ Any question of law or statutory interpretation

KEY CALIFORNIA CASE — KIRKWOOD v. CSAA:

Kirkwood v. California State Auto. Ass'n, 193 Cal. App. 4th 49 (2011) is the leading California case on the scope of appraisal. The court held:

• "Section 2071 constrains the role of the appraiser to that of appraising 'the loss, stating separately actual cash value and loss to each item.'"
• "Appraisers have no power to interpret the insurance contract or applicable statutes."
• "Their sole function is to determine the damage resulting to various items submitted for their consideration."
• "The appraisal panel may not decide questions of law, interpret the policy or determine coverage, or decide questions of causation."
• The trial court properly bifurcated the case, ruling on the statutory interpretation question (CIC § 2051) first, then having that ruling "inform the appraisal when it goes forward."

PRACTICAL IMPACT: If the parties dispute what "actual cash value" means under CIC § 2051 (e.g., whether to apply a broad evidence rule or the statutory cost-less-depreciation formula), the court must resolve that legal question FIRST. Then the appraisers apply the court's legal determination to calculate the specific dollar amounts.

8. INFORMAL NATURE OF PROCEEDINGS

CIC § 2071 provides that appraisal proceedings are informal unless the insured and the company mutually agree otherwise:

• No formal discovery is conducted during the appraisal
• No formal rules of evidence apply
• No court reporter is used
• The appraisers conduct their own inspection, review documentation, and reach their determination through deliberation

PRACTICE NOTE: Despite the informal nature of the proceedings, the appraisers should maintain a written record of their inspection, the documents reviewed, and the basis for their determination. This record may be important if the award is later challenged.

9. TIMELINE AND STATUTORY DEADLINES

CIC § 2071 sets the following deadlines:

Proposed Supplemental Timeline:

10. PRESERVATION OF BAD FAITH AND STATUTORY CLAIMS

THE INSURED EXPRESSLY PRESERVES ALL BAD FAITH AND STATUTORY CLAIMS UNDER CALIFORNIA LAW.

California recognizes the tort of bad faith breach of the implied covenant of good faith and fair dealing in the insurance context. The Insured's participation in appraisal does not waive:

☐ Bad faith denial, delay, or underpayment — Gruenberg v. Aetna Ins. Co., 9 Cal. 3d 566 (1973); Egan v. Mutual of Omaha Ins. Co., 24 Cal. 3d 809 (1979)
☐ Violation of Cal. Ins. Code § 790.03(h) — Unfair Claims Settlement Practices
☐ Violation of the Fair Claims Settlement Practices Regulations (Cal. Code Regs., tit. 10, § 2695.1 et seq.)
☐ Breach of the implied covenant of good faith and fair dealing
☐ Punitive damages under Neal v. Farmers Ins. Exchange, 21 Cal. 3d 910 (1978) (punitive damages for bad faith available in California)
☐ Breach of contract for failure to pay covered benefits
☐ Unfair business practices under Bus. & Prof. Code § 17200
☐ Attorney's fees under Brandt v. Superior Court, 37 Cal. 3d 813 (1985) (fees incurred to recover policy benefits due to bad faith)
☐ Any other statutory or common law remedies

CALIFORNIA PRACTICE NOTE — BRANDT FEES: Under Brandt v. Superior Court, an insured can recover attorney's fees incurred to obtain the policy benefits that were wrongfully withheld due to bad faith. This means fees incurred in the appraisal process itself may be recoverable if the insurer's conduct preceding the appraisal constituted bad faith.

11. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights and remedies under the Policy
• All rights under the California Insurance Code, including CIC §§ 2051, 2051.5, 2071, and 790.03
• The right to judicial determination of any question of law, statutory interpretation, or coverage before or after appraisal
• The right to challenge the appraisal award on grounds of fraud, misconduct, or exceeding scope
• The right to recover Brandt fees, punitive damages, and other remedies
• All rights not expressly waived herein

12. DEMAND FOR RESPONSE

The Insured demands that the Carrier respond within twenty (20) days as required by CIC § 2071, confirming:

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

Failure to comply with the statutory appraisal process may constitute:

• A violation of the Carrier's obligations under CIC § 2071
• Evidence of bad faith claim handling
• An unfair claims settlement practice under CIC § 790.03(h)
• Grounds for judicial intervention

Please direct all correspondence to:

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

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL — CALIFORNIA SUPERIOR COURT

SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF [________________________________]

MOTION TO COMPEL APPRAISAL PURSUANT TO CALIFORNIA INSURANCE CODE § 2071

COMES NOW [________________________________] ("Petitioner"), by and through undersigned counsel, and moves this Court for an Order compelling [________________________________] ("Respondent") to participate in the appraisal process as mandated by California Insurance Code § 2071.

I. STATUTORY FRAMEWORK

1. California Insurance Code § 2071 codifies the California Standard Form Fire Insurance Policy, which includes a mandatory appraisal provision. This provision requires that when the insured and the insurer "fail to agree as to the actual cash value or the amount of loss," either party may demand appraisal.

2. The appraisal provision is a statutorily prescribed component of California fire insurance policies. CIC § 2070 provides that the standard form "shall be" used for fire insurance.

3. Courts routinely enforce the appraisal clause as a valid, expedient method for resolving valuation disputes. See Alexander v. Farmers Ins. Co., 219 Cal. App. 4th 1183 (2013).

II. FACTS

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

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

6. The parties dispute the actual cash value and/or amount of loss. Petitioner's estimate: $[________________________________]. Respondent's estimate: $[________________________________].

7. On [__/__/____], Petitioner made written demand for appraisal pursuant to CIC § 2071 and notified Respondent of its selected appraiser.

8. Respondent has [refused to participate / failed to appoint an appraiser within 20 days / failed to respond].

III. THE DISPUTE IS WITHIN APPRAISAL SCOPE

9. The dispute between the parties concerns the amount of loss and/or actual cash value — matters squarely within the scope of appraisal under CIC § 2071. The Insured does not seek to have the appraisers resolve coverage questions, interpret the Policy, or determine causation.

10. To the extent any legal question (such as the proper interpretation of CIC § 2051) must be resolved before the appraisers can proceed, the Insured requests that this Court resolve that question and then order the appraisal to proceed. See Kirkwood v. California State Auto. Ass'n, 193 Cal. App. 4th 49 (2011) (trial court properly resolved statutory interpretation issue first, then ordered appraisal).

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner requests:

A. An Order compelling Respondent to participate in appraisal under CIC § 2071;

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

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

D. An Order appointing an umpire if the appraisers cannot agree within 15 days;

E. A determination of any threshold legal questions (e.g., CIC § 2051 interpretation) that must be resolved before the appraisal can proceed;

F. Attorney's fees as recoverable under applicable law;

G. Such other relief as the Court deems just.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

State Bar No.: [________________________________]

Firm: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

PART III: APPRAISAL AWARD FORM — CALIFORNIA

APPRAISAL AWARD PURSUANT TO CALIFORNIA INSURANCE CODE § 2071

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

Pursuant to CIC § 2071, the undersigned have inspected the property, reviewed documentation, and appraised the loss, stating separately actual cash value and loss to each item:

Total Replacement Cost Value: $[________________________________]

Total Depreciation: $[________________________________]

Total Actual Cash Value: $[________________________________]

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

15. CALIFORNIA-SPECIFIC PRACTICE NOTES

A. The Standard Fire Policy — CIC § 2071

California codifies the appraisal clause in the standard fire insurance policy at CIC § 2071. Key features:

• Written demand triggers the process
• 20 days to appoint appraisers
• 15 days for appraisers to select umpire
• Judge of court of record selects umpire if appraisers can't agree
• Appraisal proceedings are informal
• The award of the appraisers, or any two, binds the parties when filed with the company

B. CIC § 2051 — Actual Cash Value

CIC § 2051(b) defines actual cash value for open policies as "the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less."

Critical distinction: Whether CIC § 2051 requires a particular depreciation methodology is a legal question for the court, not a factual question for appraisers. Kirkwood established that the court resolves the legal standard first, then the appraisers apply it.

C. CIC § 2051.5 — Replacement Cost

CIC § 2051.5 governs replacement cost coverage. Under this section, the insured is entitled to recover the amount it actually and necessarily spends to repair, rebuild, or replace the damaged property, without deduction for depreciation, up to the policy limit.

D. The Kirkwood Bifurcation Approach

Kirkwood v. CSAA, 193 Cal. App. 4th 49 (2011) established a bifurcation approach:

1. Step 1: The court resolves any questions of law — such as how to interpret CIC § 2051 or whether the Carrier's depreciation methodology is proper
2. Step 2: The court's legal ruling then "informs the appraisal when it goes forward" — the appraisers apply the court's ruling to calculate specific dollar amounts

This is important because it means appraisal need not be an all-or-nothing proposition. Even where there is a legal dispute embedded in the valuation disagreement, the court can resolve the legal issue and then send the remaining factual questions to appraisal.

E. Informal Proceedings — CIC § 2071

Appraisal under CIC § 2071 is informal by default:

• No discovery
• No formal rules of evidence
• No court reporter
• The parties can mutually agree to add formality

This informality makes appraisal faster and less expensive than litigation or arbitration, but it also means less procedural protection. Practitioners should consider whether specific procedural safeguards (e.g., a written record of the inspection) should be agreed upon in advance.

F. Wildfire Claims — Special Considerations

Given California's wildfire exposure, practitioners should be aware:

• CIC § 2051.5 provides that insureds do not need to actually rebuild at the same location to recover replacement cost — they can rebuild at a different location
• CIC § 10101 provides extended replacement cost coverage requirements
• Appraisal may be appropriate for the amount of loss but not for coverage disputes related to fire perimeter mapping, evacuation orders, or smoke damage causation

G. Bad Faith and Brandt Fees

California permits recovery of attorney's fees incurred to recover policy benefits wrongfully withheld. Brandt v. Superior Court, 37 Cal. 3d 813 (1985). If the insurer's pre-appraisal conduct constituted bad faith (e.g., unreasonable delay, lowball estimates without adequate investigation), the insured may recover Brandt fees even if the appraisal ultimately resolves the valuation dispute.

16. SOURCES AND REFERENCES

California Statutes

• Cal. Ins. Code § 2071 — Standard Form Fire Insurance Policy — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=2071.&lawCode=INS
• Cal. Ins. Code § 2051 — Measure of Recovery (ACV) — https://codes.findlaw.com/ca/insurance-code/ins-sect-2051/
• Cal. Ins. Code § 2051.5 — Replacement Cost Coverage — https://codes.findlaw.com/ca/insurance-code/ins-sect-2051-5.html
• Cal. Ins. Code § 790.03 — Unfair Claims Settlement Practices

California Case Law

• Kirkwood v. California State Auto. Ass'n, 193 Cal. App. 4th 49 (2011) — Appraisal scope and bifurcation — https://caselaw.findlaw.com/ca-court-of-appeal/1644986.html
• Alexander v. Farmers Ins. Co., 219 Cal. App. 4th 1183 (2013)
• Gruenberg v. Aetna Ins. Co., 9 Cal. 3d 566 (1973) — Bad faith
• Brandt v. Superior Court, 37 Cal. 3d 813 (1985) — Attorney's fees for bad faith
• Neal v. Farmers Ins. Exchange, 21 Cal. 3d 910 (1978) — Punitive damages

California Regulatory Materials

• Fair Claims Settlement Practices Regulations — Cal. Code Regs., tit. 10, § 2695.1 et seq.
• California Department of Insurance — https://www.insurance.ca.gov/

Legal Commentary

• Advocate Magazine, "A Primer on Fire Insurance Coverage in California" (Feb. 2025) — https://www.advocatemagazine.com/article/2025-february/a-primer-on-fire-insurance-coverage-in-california
• Advocate Magazine, "First-Party Insurance Appraisals" (Nov. 2022) — https://www.advocatemagazine.com/article/2022-november/first-party-insurance-appraisals
• Gordon Rees, "Kirkwood v. CSAA" — https://www.gordonrees.com/publications/2011/em-kirkwood-v-california-state-automobile-association-em-insured-entitled-to-seek-declaratory-relief-on-claim-that-insurer-misapplied-statutory-guidelines-for-conducting-appraisals
• Lawpipe, "Insurance Appraisals Law and Landmark California Cases" — https://www.lawpipe.com/California/Insurance_Appraisals_Law_and_Landmark_California_Cases.html

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. California insurance appraisal procedures are governed by CIC § 2071 and related statutes. An attorney licensed in California 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