Appraisal and Umpire Demand (Policyholder) — Colorado

APPRAISAL AND UMPIRE DEMAND — COLORADO

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 Colorado Law
8. Timeline and Deadlines
9. Preservation of Claims Under CRS 10-3-1115/1116 and Bad Faith
10. Reservation of Rights
11. Demand for Response
12. Petition to Compel Appraisal
13. Appraisal Award Form
14. Colorado-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 actual cash value and/or the amount of loss arising from the [________________________________] (describe peril — e.g., hailstorm, windstorm, fire, water damage) that occurred on or about [__/__/____] at the insured property located at [________________________________].

The Policy contains an appraisal clause that entitles either party to demand appraisal when a valuation dispute exists. The Insured hereby exercises that contractual right.

The Insured further notes that the Colorado Division of Insurance has addressed appraisal procedures in Bulletin B-5.26, which provides guidance regarding the conduct of appraisals in property and casualty insurance claims. The Insured expects both parties to conduct the appraisal process consistent with this guidance and with the Carrier's obligations under C.R.S. §§ 10-3-1115 and 10-3-1116.

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

Specific disputed items:

☐ Scope of hail/wind damage to roofing
☐ Scope of structural damage
☐ Unit pricing for labor and materials
☐ Actual cash value and depreciation calculations
☐ Replacement cost value calculations
☐ Contents / personal property valuation
☐ Additional living expense / loss of use
☐ Code upgrade costs
☐ Overhead and profit
☐ Matching of undamaged adjacent materials
☐ Other: [________________________________]

4. NOMINATION OF INSURED'S APPRAISER

The Insured nominates the following competent and disinterested appraiser:

The appraiser is competent and disinterested, with no financial interest in the outcome beyond the appraiser's fee.

COLORADO NOTE — INDEPENDENT APPRAISERS: Colorado Division of Insurance Bulletin B-5.26 addresses the independence of appraisers. Neither party should take actions to control or direct their appraiser during the appraisal process. The appraisers must exercise independent judgment.

5. CARRIER'S APPRAISER REQUEST

The Insured requests that the Carrier appoint a competent and disinterested appraiser within twenty (20) days of this demand (or as the Policy provides).

Please provide:

☐ Full name
☐ Professional qualifications and licensing
☐ Firm affiliation
☐ Contact information
☐ Confirmation of disinterestedness

6. UMPIRE SELECTION FRAMEWORK

The appraisers shall select a competent and disinterested umpire within fifteen (15) days (or as the Policy provides).

Proposed Umpire Candidates:

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

If the Appraisers Cannot Agree:

☐ Each appraiser submits a list of three (3) candidates; alternate strikes
☐ Either party petitions the District Court of [________________________________] County, Colorado, for umpire appointment
☐ Other: [________________________________]

7. SCOPE OF APPRAISAL UNDER COLORADO LAW

The appraisal is limited to determining the amount of loss and the actual cash value/replacement cost value of the damaged property:

Within Scope:

☐ Amount of physical damage
☐ Cost to repair or replace each damaged item
☐ Actual cash value at time of loss
☐ Replacement cost value
☐ Depreciation
☐ Total amount of loss

Outside Scope:

☐ Whether the loss is covered under the Policy
☐ Policy interpretation and exclusion application
☐ Causation of the loss
☐ Bad faith or claims handling conduct
☐ Application of deductibles, sublimits, or coinsurance

COLORADO PRACTICE NOTE: Colorado courts follow the general rule that appraisal determines the amount of loss, while coverage and liability questions remain for judicial determination. Where the carrier disputes causation (e.g., hail damage vs. wear and tear), the practitioner should assess whether the dispute is truly a valuation question or a coverage/causation question that must be resolved before appraisal.

8. TIMELINE AND DEADLINES

9. PRESERVATION OF CLAIMS UNDER CRS 10-3-1115/1116 AND BAD FAITH

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

Colorado provides powerful statutory remedies for unreasonable delay or denial of insurance claims. The Insured's participation in appraisal does not waive:

A. Statutory Claims Under CRS §§ 10-3-1115 and 10-3-1116:

☐ C.R.S. § 10-3-1115 — prohibits unreasonable delay or denial of payment of a claim for benefits owed to or on behalf of a first-party claimant
☐ C.R.S. § 10-3-1116 — remedies include:

• Two times the covered benefit (doubled damages)
• Reasonable attorney's fees and court costs
• These remedies are available when the insurer's delay or denial was unreasonable

CRITICAL COLORADO STATUTE: C.R.S. § 10-3-1116 provides that a first-party claimant who demonstrates that the insurer delayed or denied payment unreasonably may recover two times the covered benefit plus reasonable attorney's fees and court costs. This is one of the most powerful statutory penalties in the country. The appraisal process does not insulate the Carrier from these statutory remedies.

B. Common Law Bad Faith:

☐ Breach of the implied duty of good faith and fair dealing — Farmers Group, Inc. v. Trimble, 691 P.2d 1138 (Colo. 1984)
☐ Compensatory damages, including economic and emotional distress damages
☐ Punitive damages in appropriate cases
☐ Attorney's fees

C. Other Preserved Claims:

☐ Violation of Colorado Unfair Claims Settlement Practices Act — C.R.S. § 10-3-1104
☐ Colorado Consumer Protection Act claims — C.R.S. § 6-1-105
☐ Breach of contract
☐ Any other available remedies

COLORADO PRACTICE NOTE: In Colorado, the liability of the insurer "was not reasonably clear for the purposes of bad faith prior to the time that appraisal had taken place." However, an appraisal award that significantly exceeds the carrier's pre-appraisal estimate may establish that the delay or denial was unreasonable, triggering the double-damages remedy under § 10-3-1116.

10. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights and remedies under the Policy
• All rights under C.R.S. §§ 10-3-1115, 10-3-1116, and 10-3-1104
• All bad faith claims under Colorado common law
• The right to challenge the appraisal award on appropriate grounds
• The right to recover two times the covered benefit, attorney's fees, and costs
• All rights not expressly waived herein

11. DEMAND FOR RESPONSE

The Insured demands a written response within twenty (20) days confirming:

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

Failure to participate may constitute:

• Unreasonable delay under C.R.S. § 10-3-1115
• Evidence of bad faith
• Grounds for judicial intervention
• A violation of unfair claims settlement practices

Please direct all correspondence to:

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

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL — COLORADO DISTRICT COURT

IN THE DISTRICT COURT, [________________________________] COUNTY, COLORADO

MOTION TO COMPEL APPRAISAL

COMES NOW [________________________________] ("Petitioner"), by and through undersigned counsel, and moves this Court to compel [________________________________] ("Respondent") to participate in the appraisal process as provided in the parties' insurance policy.

I. INTRODUCTION

1. This Motion seeks to enforce the appraisal clause in a property insurance policy. The appraisal clause is a valid, enforceable contractual provision designed to resolve valuation disputes without full-scale litigation.

II. FACTS

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

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

4. The parties disagree on the amount of loss. Petitioner's estimate: $[________________________________]. Respondent's estimate: $[________________________________].

5. On [__/__/____], Petitioner demanded appraisal and nominated its appraiser.

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

III. LEGAL ARGUMENT

7. The appraisal clause is a valid contractual provision. Colorado courts enforce appraisal clauses when a genuine valuation dispute exists and a proper demand has been made.

8. The dispute between the parties concerns the amount of loss — a matter within the scope of appraisal. The Petitioner does not seek to have the appraisers determine coverage.

9. Respondent's refusal to participate violates the contractual appraisal provision and may constitute unreasonable delay under C.R.S. § 10-3-1115.

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner requests:

A. An Order compelling Respondent to participate in appraisal;

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

C. If Respondent fails, the Court appoint an appraiser on Respondent's behalf;

D. Appointment of an umpire if the appraisers cannot agree;

E. Attorney's fees and costs under C.R.S. § 10-3-1116;

F. 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 was served upon:

[________________________________]

by [________________________________].

Signature: ____________________________________

PART III: APPRAISAL AWARD FORM — COLORADO

APPRAISAL AWARD

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

SIGNATURES

☐ Both appraisers agree ☐ One appraiser and the umpire agree

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. COLORADO-SPECIFIC PRACTICE NOTES

A. No Standalone Appraisal Statute

Colorado does not have a standalone statutory appraisal framework. Appraisal rights arise from the policy language. The Colorado Division of Insurance addressed appraisal procedures in Bulletin B-5.26, but attempts to codify this guidance (HB 18-1153, 2018) were killed in committee.

Key features of Bulletin B-5.26:

• The appraisal process should follow the policy terms
• Appraisers must exercise independent judgment — neither party should control or direct the appraiser
• The appraisal determines the "fair value" of the covered loss
• The process should be completed within a reasonable time

B. The CRS 10-3-1115/1116 Powerhouse

Colorado's unreasonable delay/denial statutes are among the strongest in the country:

C.R.S. § 10-3-1115: An insurer shall not unreasonably delay or deny payment of a claim for benefits owed to or on behalf of any first-party claimant.

C.R.S. § 10-3-1116: If the insurer's delay or denial was unreasonable:

• The claimant may recover two times the covered benefit (i.e., doubled damages)
• Plus reasonable attorney's fees and court costs

Relationship to appraisal: Payment of an appraisal award may not insulate the insurer from § 10-3-1116 liability if the delay in reaching the appraisal was itself unreasonable. The question is whether the insurer acted reasonably throughout the claims process.

C. Bad Faith Under Trimble

Farmers Group, Inc. v. Trimble, 691 P.2d 1138 (Colo. 1984) established that an insurer has an implied duty of good faith and fair dealing. Breach of this duty gives rise to tort liability, including:

• Compensatory damages
• Emotional distress damages
• Punitive damages (in appropriate cases)

D. Hail and Wind Claims — Colorado's Reality

Colorado experiences significant hail and windstorm losses, particularly along the Front Range. Common appraisal issues include:

• Whether roof damage requires full replacement or partial repair
• "Matching" disputes — whether undamaged portions of the roof must be replaced to match repaired areas
• Whether the Carrier's preferred vendor pricing reflects fair market rates
• Overhead and profit — whether general contractor overhead and profit should be included in the loss estimate

E. Appraiser Independence

Bulletin B-5.26 emphasized that appraisers must exercise independent judgment. This means:

• The carrier should not coach, direct, or pressure its appraiser to reach a particular outcome
• The insured should also respect the independence of its appraiser
• Evidence that either party improperly influenced its appraiser may be grounds to challenge the award

F. C.R.S. § 10-4-110.8 — Homeowner's Insurance Practices

C.R.S. § 10-4-110.8 addresses prohibited and required practices in homeowner's insurance, including requirements related to estimates of replacement value and other policyholder protections. While not specifically an appraisal statute, violations of this section may be relevant to bad faith and unreasonable delay claims.

15. SOURCES AND REFERENCES

Colorado Statutes

• C.R.S. § 10-3-1115 — Unreasonable Delay or Denial — https://colorado.public.law/statutes/crs_title_10,_property_and_casualty_insurance
• C.R.S. § 10-3-1116 — Remedies (Two Times Covered Benefit)
• C.R.S. § 10-3-1104 — Unfair Claims Settlement Practices
• C.R.S. § 10-4-110.8 — Homeowner's Insurance Practices — https://law.justia.com/codes/colorado/title-10/property-and-casualty-insurance/article-4/part-1/section-10-4-110-8/

Colorado Case Law

• Farmers Group, Inc. v. Trimble, 691 P.2d 1138 (Colo. 1984) — Bad faith

Colorado Division of Insurance

• Bulletin B-5.26 — Appraisal Procedures
• Colorado Insurance Bulletins — https://doi.colorado.gov/statutes-regulations-bulletins/colorado-insurance-bulletins
• Colorado Division of Insurance — https://doi.colorado.gov/

Legal Commentary

• Merlin Law Group, "Calculation of Damages Under Colorado's Insurance Prompt Payment Statutes" — https://www.propertyinsurancecoveragelaw.com/blog/calculation-of-damages-under-colorados-insurance-prompt-payment-statutes-crs-1031115-and-1031116-part-iii/
• ALFA International, "Colorado Insurance Law Compendium" — https://www.alfainternational.com/compendium/insurance-law/colorado/

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. Colorado insurance appraisal procedures are governed by the policy language, Division of Insurance bulletins, and Colorado statutes. An attorney licensed in Colorado 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