Appraisal and Umpire Demand (Policyholder) — Florida

APPRAISAL AND UMPIRE DEMAND — FLORIDA

TABLE OF CONTENTS

1. Formal Demand for Appraisal
2. Identification of Policy and Loss
3. Mediation Prerequisite — Fla. Stat. § 627.7015
4. Statement of Valuation Dispute
5. Nomination of Insured's Appraiser
6. Carrier's Appraiser Request
7. Umpire Selection Framework
8. Scope of Appraisal — Johnson v. Nationwide Framework
9. Timeline and Deadlines
10. Preservation of Bad Faith Claims — SB 2-A Considerations
11. Reservation of Rights
12. Demand for Response
13. Petition to Compel Appraisal
14. Appraisal Award Form
15. Florida-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 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., hurricane, tropical storm, water damage, sinkhole activity) that occurred on or about [__/__/____] at the insured property located at [________________________________].

The Policy contains an appraisal clause that provides for resolution of valuation disputes through the appraisal process. The Insured hereby exercises the contractual right to appraisal.

MEDIATION NOTE: The Insured [has completed / is willing to participate in] mediation under Fla. Stat. § 627.7015, if applicable and not already waived by the Carrier. [If mediation has occurred, state: "The parties participated in mediation on [__/__/____], which did not result in resolution."] [If mediation was not offered: "The Carrier failed to offer mediation as required by § 627.7015, thereby waiving the mediation prerequisite."]

2. IDENTIFICATION OF POLICY AND LOSS

3. MEDIATION PREREQUISITE — FLA. STAT. § 627.7015

Florida law provides a mediation process for disputed property insurance claims under Fla. Stat. § 627.7015. Key considerations:

Status of Mediation:

☐ Mediation has been completed and did not result in resolution — appraisal demand is proper
☐ Mediation was offered by the Carrier but rejected by the Insured — Insured is not required to mediate before demanding appraisal
☐ The Carrier failed to notify the Insured of the right to mediation — the Carrier has waived the right to compel appraisal as a precondition to litigation
☐ Mediation is not applicable to this claim (e.g., commercial coverage)
☐ Other: [________________________________]

FLORIDA PRACTICE NOTE: Under § 627.7015, the insurer must notify the policyholder of the right to participate in the mediation program. If the insurer fails to provide this notice, it waives the right to compel appraisal. Additionally, if the insurer requests mediation and the results are rejected by either party, the policyholder is not required to submit to appraisal as a precondition to legal action.

4. STATEMENT OF VALUATION DISPUTE

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

Specific disputed items:

☐ Scope of hurricane/storm damage
☐ Roof damage — full replacement vs. repair
☐ Interior water damage extent
☐ Mold remediation costs
☐ Unit pricing for labor and materials
☐ Actual cash value / depreciation
☐ Replacement cost value
☐ Additional living expense
☐ Contents / personal property
☐ Code upgrade / ordinance or law
☐ Sinkhole remediation costs (if applicable)
☐ Other: [________________________________]

5. NOMINATION OF INSURED'S APPRAISER

The Insured nominates the following competent and disinterested appraiser:

6. CARRIER'S APPRAISER REQUEST

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

Please provide:

☐ Full name
☐ Professional qualifications
☐ Firm affiliation
☐ Contact information
☐ Statement of disinterestedness

7. UMPIRE SELECTION FRAMEWORK

The appraisers shall attempt to agree on a competent and disinterested umpire within fifteen (15) days of both appointments.

Proposed Umpire Candidates:

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

If the Appraisers Cannot Agree:

The Policy typically provides that if the appraisers cannot agree on an umpire, either party may petition a judge of a court of record for umpire appointment. In Florida:

☐ Either party petitions the Circuit Court of [________________________________] County, Florida
☐ Each appraiser submits a list of candidates; alternate strikes
☐ Other: [________________________________]

8. SCOPE OF APPRAISAL — JOHNSON V. NATIONWIDE FRAMEWORK

Florida's scope of appraisal is governed primarily by Johnson v. Nationwide Mutual Ins. Co., 828 So. 2d 1021 (Fla. 2002):

Within Scope:

☐ The amount of loss
☐ Actual cash value / replacement cost value
☐ Cost to repair or replace
☐ Depreciation
☐ Causation — when the insurer admits there is at least some covered loss but disputes the amount (Johnson framework)

Outside Scope:

☐ Whether the loss is covered when the insurer denies coverage entirely
☐ Policy interpretation and exclusion application
☐ Pure coverage questions (e.g., whether an exclusion applies)
☐ Bad faith

KEY FLORIDA CASE LAW:

Johnson v. Nationwide, 828 So. 2d 1021 (Fla. 2002): The Florida Supreme Court established the critical distinction:
- Where the insurer contends there is no covered loss, causation is an issue for the court
- Where the insurer admits there is at least some covered loss but disputes the amount, the appraisal procedure is appropriate to determine causation — meaning the appraiser can determine how much of the damage was caused by the covered peril

State Farm v. Licea, 685 So. 2d 1285 (Fla. 1996): The appraisal clause is not void for lack of mutuality, even where the policy contains a retained-rights clause for the insurer.

PRACTICAL IMPACT: If the Carrier admits that the hurricane caused some damage but disputes the extent, the appraisers can determine what damage the hurricane caused and what it costs to repair. If the Carrier denies that any covered damage occurred (e.g., claiming all damage is from an excluded cause), that is a coverage question for the court.

9. TIMELINE AND DEADLINES

FLORIDA TIMING NOTE: Fla. Stat. § 627.70131 imposes deadlines on the insurer to investigate and respond to claims. Fla. Stat. § 627.70152 requires the insurer to pay or deny a claim within specified timeframes. These statutory deadlines continue to run during the appraisal process.

10. PRESERVATION OF BAD FAITH CLAIMS — SB 2-A CONSIDERATIONS

THE INSURED EXPRESSLY PRESERVES ALL BAD FAITH AND STATUTORY CLAIMS.

A. SB 2-A (Dec. 2022) — Critical Changes:

SB 2-A significantly changed the relationship between appraisal awards and bad faith claims in Florida. For policies issued or renewed on or after December 16, 2022:

☐ An appraisal award alone does not support a bad faith claim — the insured must first establish breach of the insurance contract through an adverse adjudication by a court of law (final judgment or decree)
☐ Acceptance of an offer of judgment or payment of an appraisal award does not constitute an adverse adjudication
☐ However, the difference between the insurer's estimate and the appraisal award may be used as evidence of bad faith
☐ The OIR may suspend/revoke an insurer's certificate of authority or impose fines if the insurer engages in a general business practice of compelling appraisal without just cause

For policies issued BEFORE December 16, 2022: The pre-SB 2-A framework applies — an appraisal award could itself support a bad faith claim.

B. Preserved Claims:

☐ Bad faith (subject to SB 2-A requirements for post-12/16/2022 policies)
☐ Fla. Stat. § 624.155 — Civil remedy (bad faith statute)
☐ Fla. Stat. § 626.9541 — Unfair claims settlement practices
☐ Breach of contract
☐ Statutory interest and penalties
☐ Attorney's fees (note: SB 2-A eliminated one-way attorney's fees for property insurance claims filed on or after 3/24/2023)
☐ Any other available remedies

CRITICAL FLORIDA PRACTICE NOTE — ATTORNEY'S FEES: SB 2-A and HB 837 (2023) eliminated one-way attorney's fees for property insurance claims. For claims arising under policies issued or renewed after March 24, 2023, the prevailing party (either insured or insurer) may recover attorney's fees under a two-way fee-shifting provision. This fundamentally changes the economics of Florida property insurance litigation.

11. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights under the Policy
• All rights under Florida Statutes, including §§ 627.7015, 627.70131, 627.70152, 624.155, and 626.9541
• The right to pursue bad faith claims (subject to SB 2-A requirements)
• The right to challenge the appraisal award
• The right to use the appraisal award as evidence in subsequent proceedings
• All rights not expressly waived herein

12. 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:

• An unfair claims settlement practice under § 626.9541
• Evidence of bad faith
• Grounds for judicial intervention

FLORIDA OIR ENFORCEMENT NOTE: Under SB 2-A, the Florida Office of Insurance Regulation has authority to take action against insurers that engage in a "general business practice" of compelling appraisal without just cause. If the insurer exhibits a "pattern or practice of willful unfair insurance trade practice violations" regarding appraisal, the OIR may prohibit the insurer from invoking appraisal for up to two years.

Please direct all correspondence to:

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

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL — FLORIDA CIRCUIT COURT

IN THE CIRCUIT COURT OF THE [________________________________] JUDICIAL CIRCUIT
IN AND FOR [________________________________] COUNTY, FLORIDA

MOTION TO COMPEL APPRAISAL

COMES NOW [________________________________] ("Petitioner"), and moves to compel [________________________________] ("Respondent") to participate in appraisal under the Policy's appraisal clause.

I. LEGAL FRAMEWORK

1. Florida courts routinely enforce appraisal clauses in property insurance policies. State Farm Fire & Cas. Co. v. Licea, 685 So. 2d 1285 (Fla. 1996) (appraisal clause not void for lack of mutuality).

2. The scope of appraisal includes determining the amount of loss, and may include causation questions when the insurer admits some covered loss exists. Johnson v. Nationwide Mutual Ins. Co., 828 So. 2d 1021 (Fla. 2002).

3. The mediation prerequisite under Fla. Stat. § 627.7015 [has been satisfied / was waived by the Carrier's failure to provide mediation notice / is not applicable].

II. FACTS

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

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

6. The parties dispute the amount of loss. Petitioner's estimate: $[________________________________]. Respondent's estimate: $[________________________________].

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

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

III. THE DISPUTE IS WITHIN APPRAISAL SCOPE

9. Under the Johnson framework, the dispute is properly subject to appraisal because [the Carrier admits some covered loss exists but disputes the amount / the dispute concerns the amount of loss, not whether the loss is covered].

10. The appraisal will determine the amount of loss — a factual question within the competence of disinterested appraisers.

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner requests:

A. An Order compelling Respondent to participate in appraisal;

B. Respondent to appoint an appraiser within [____] days;

C. If Respondent fails, appointment of an appraiser on its behalf;

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

E. Attorney's fees and costs;

F. Such other relief as the Court deems just.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Florida Bar No.: [________________________________]

Firm: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

CERTIFICATE OF SERVICE

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

[________________________________]

by [________________________________].

Signature: ____________________________________

PART III: APPRAISAL AWARD FORM — FLORIDA

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

15. FLORIDA-SPECIFIC PRACTICE NOTES

A. The Post-SB 2-A Landscape

SB 2-A (signed Dec. 16, 2022) fundamentally restructured Florida property insurance litigation. Key changes affecting appraisal:

1. Bad Faith Requires Court Adjudication: An appraisal award alone no longer supports a bad faith claim. The insured must obtain an "adverse adjudication by a court of law" — a final judgment or decree establishing the insurer breached the policy.

2. Appraisal Award as Evidence: The difference between the insurer's estimate and the appraisal award may still be used as evidence of bad faith, even though the award itself is not sufficient.

3. OIR Enforcement: The OIR can prohibit an insurer from invoking appraisal for up to two years if the insurer demonstrates a pattern of willful unfair trade practices in using appraisal.

4. Effective Date: These changes apply to policies issued or renewed on or after December 16, 2022. Pre-SB 2-A policies are governed by the prior law.

B. The Mediation/Appraisal Interplay — § 627.7015

Florida's mediation statute (§ 627.7015) creates a unique interplay with appraisal:

• The insurer must offer mediation before compelling appraisal
• If the insurer fails to offer mediation, it may waive the right to compel appraisal
• If mediation occurs and either party rejects the result, the policyholder is not required to submit to appraisal as a precondition to litigation
• This means the insured can still demand appraisal — the waiver primarily affects the insurer's ability to compel it

C. The Johnson Causation Framework

Johnson v. Nationwide, 828 So. 2d 1021 (Fla. 2002) is the essential Florida appraisal case:

• Complete denial of coverage = causation is for the court (not appraisal)
• Admits some covered loss, disputes amount = appraisal is appropriate, and appraisers may determine causation as part of the amount-of-loss inquiry

Example: If the carrier says "the hurricane caused zero damage to your roof — all the damage is from wear and tear," that is a coverage denial for the court. If the carrier says "the hurricane caused $10,000 in damage but not the $80,000 you claim," the appraisers can determine how much hurricane damage there actually is.

D. Citizens Property Insurance

Citizens Property Insurance Corporation has specific procedures for appraisal and mediation. Practitioners handling Citizens claims should review:

• Citizens Policy Manual
• Citizens-specific appraisal procedures
• Any additional mediation or ADR requirements

E. Attorney's Fee Considerations Post-SB 2-A and HB 837

The elimination of one-way attorney's fees for property insurance claims fundamentally changes the economics:

• Pre-3/24/2023 claims: Prevailing insured recovers attorney's fees
• Post-3/24/2023 claims: Two-way fee shifting — the prevailing party (insured or insurer) may recover fees
• This makes appraisal potentially more attractive as an alternative to litigation, since the risk of adverse fee awards in litigation is now bilateral

F. Sinkhole Claims

Sinkhole claims in Florida involve unique appraisal issues under Fla. Stat. § 627.706 et seq. Causation disputes in sinkhole cases (whether damage is caused by sinkhole activity or other causes) are typically coverage questions for the court under the Johnson framework, not for appraisal.

16. SOURCES AND REFERENCES

Florida Statutes

• Fla. Stat. § 627.7015 — Alternative Dispute Resolution — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.7015.html
• Fla. Stat. § 627.70152 — Insurer's Duties — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0600-0699/0627/Sections/0627.70152.html
• Fla. Stat. § 627.70131 — Notice of Claim
• Fla. Stat. § 624.155 — Civil Remedy (Bad Faith)
• Fla. Stat. § 626.9541 — Unfair Claims Settlement Practices

Florida Case Law

• Johnson v. Nationwide Mutual Ins. Co., 828 So. 2d 1021 (Fla. 2002) — https://caselaw.findlaw.com/court/fl-supreme-court/1193406.html
• State Farm Fire & Cas. Co. v. Licea, 685 So. 2d 1285 (Fla. 1996) — https://law.justia.com/cases/florida/supreme-court/1996/85200-0.html

SB 2-A / Legislative Materials

• Clyde & Co, "Historic Florida Insurance Reforms Under SB 2-A" — https://www.clydeco.com/en/insights/2023/03/historic-florida-insurance-reforms-under-sb-2-a
• Cozen O'Connor, "Florida Begins New Era with Major Property Insurance Reforms" — https://www.propertyinsurancelawobserver.com/2022/12/16/florida-begins-new-era-with-major-property-insurance-reforms/
• Gen Re, "Florida SB 2A — Notable Changes" — https://www.genre.com/us/knowledge/publications/2023/february/florida-sb-2A-notable-changes-to-florida-property-insurance-regulations-en

Other Resources

• IRMI, "Procedure for Conduct of Appraisal Evolves in Florida" — https://www.irmi.com/articles/expert-commentary/procedure-for-conduct-of-appraisal-evolves-in-florida
• Herman & Wells, "Guide to the Insurance Appraisal Process in Florida" — https://hermanwells.com/blog/guide-to-the-insurance-appraisal-process-in-florida/

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. Florida insurance appraisal law has undergone significant changes through SB 2-A (2022) and HB 837 (2023). An attorney licensed in Florida 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