Appraisal and Umpire Demand (Policyholder) — New York

APPRAISAL AND UMPIRE DEMAND — NEW YORK

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 Deadline
6. Umpire Selection — NY Ins. Law § 3408 Procedure
7. Scope of Appraisal Under New York Law
8. Timeline and Deadlines
9. Preservation of Bad Faith and Statutory Claims
10. Reservation of Rights
11. Demand for Response
12. Petition to Compel Appraisal and/or Appoint Umpire — NY Ins. Law § 3408
13. Appraisal Award Form
14. New York-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 Pursuant to NY Insurance Law § 3404 and 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 provision of the New York Standard Fire Policy as set forth in NY Insurance Law § 3404 and incorporated in the Policy.

The standard fire policy, codified at NY Ins. Law § 3404, provides:

"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) that occurred on or about [__/__/____] at the insured property located at [________________________________].

Pursuant to the binding appraisal provisions of § 3404(g), which are binding on all parties to the contract, the Insured hereby demands appraisal and requires the Carrier to select and notify the Insured of its competent and disinterested appraiser within twenty (20) days.

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

Specific disputed items:

☐ 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 / ordinance or law
☐ Business interruption / loss of rents (if commercial)
☐ Other: [________________________________]

4. NOMINATION OF INSURED'S APPRAISER

Pursuant to the standard fire policy appraisal clause (NY Ins. Law § 3404), the Insured selects the following competent and disinterested appraiser:

The above-named appraiser is competent and disinterested within the meaning of the standard fire policy. The appraiser has no ownership interest, employment relationship, or financial arrangement with the Insured that would compromise independence.

5. CARRIER'S APPRAISER — 20-DAY DEADLINE

Under the standard fire policy (NY Ins. Law § 3404), the Carrier must select a competent and disinterested appraiser and notify the Insured within TWENTY (20) DAYS of this written demand.

The statutory deadline is: [__/__/____] (20 days from date of demand).

Please provide:

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

6. UMPIRE SELECTION — NY INS. LAW § 3408 PROCEDURE

Under the standard fire policy, 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 invoke the procedure under NY Insurance Law § 3408.

Section 3408 Umpire Selection Procedure:

NY Ins. Law § 3408 provides that when application is made for the selection of an umpire pursuant to the appraisal provisions of the standard fire policy:

• Application shall be made to a Justice of the Supreme Court or County Judge in the county where the property is located
• The application must be made on five (5) days' written notice to the other party
• The court shall appoint a competent and disinterested umpire

Property Location: The insured property is located in [________________________________] County, New York.

Proposed Pre-Petition Umpire Candidates:

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

If the Appraisers Cannot Agree Within 15 Days:

☐ The Insured will file an application under NY Ins. Law § 3408 with the Supreme Court of the State of New York, County of [________________________________], on five days' written notice to the Carrier
☐ Each appraiser submits a list of candidates; alternate strikes
☐ Other: [________________________________]

7. SCOPE OF APPRAISAL UNDER NEW YORK LAW

Broad Scope Under NY DFS Guidance:

The New York Department of Financial Services (formerly Department of Insurance) issued OGC Opinion No. 01-03-05, which provides:

The appraisal clause provisions of the standard fire insurance policy in New York contain no limitation on an insured's or an insurer's right to obtain an appraisal with respect to the amount of any component of the actual cash value or the amount of loss in the event there is a disagreement as to actual cash value or amount of loss.

Within Scope:

☐ Actual cash value of the damaged property
☐ Amount of loss — including any component of ACV or loss
☐ Replacement cost value (if applicable)
☐ Depreciation
☐ Cost to repair or replace each damaged item

Outside Scope:

☐ Whether the loss is covered under the Policy
☐ Policy interpretation and exclusion application
☐ Liability questions
☐ Bad faith or claims handling conduct
☐ Legal or contractual interpretation

NEW YORK PRACTICE NOTE: The DFS Opinion significantly broadens the scope of appraisal in New York by rejecting any limitation on the right to appraise "any component" of ACV or loss. This means that disputes about depreciation methodology, repair vs. replacement decisions, and line-item valuations are all within appraisal scope — as long as the underlying question is about the amount or value, not about coverage.

8. TIMELINE AND DEADLINES

9. PRESERVATION OF BAD FAITH AND STATUTORY CLAIMS

THE INSURED EXPRESSLY PRESERVES ALL CLAIMS UNDER NEW YORK LAW.

New York recognizes limited bad faith remedies in the first-party insurance context. The Insured preserves:

☐ Breach of contract for failure to pay covered benefits
☐ Claims under NY Ins. Law § 2601 — Unfair Claim Settlement Practices
☐ Claims under NY General Business Law § 349 — Deceptive Business Practices
☐ Interest on late-paid claims under NY Ins. Law § 3420 and CPLR § 5001
☐ Consequential damages for bad faith — Bi-Economy Market, Inc. v. Harleysville Ins. Co., 10 N.Y.3d 187 (2008) (consequential damages available for breach of insurance contract in some circumstances)
☐ Panasia Estates, Inc. v. Hudson Ins. Co., 10 N.Y.3d 200 (2008) (companion case to Bi-Economy)
☐ Attorney's fees if provided by statute or contract
☐ Any other available remedies

NEW YORK PRACTICE NOTE — CONSEQUENTIAL DAMAGES: The New York Court of Appeals in Bi-Economy Market and Panasia Estates opened the door to consequential damages for breach of an insurance contract where such damages were within the contemplation of the parties at the time of contracting. This means an insurer's unreasonable delay or underpayment may expose it to damages beyond the policy limits.

10. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights under the Policy
• All rights under NY Insurance Law, including §§ 3404, 3408, 2601, and related provisions
• All rights under CPLR Article 75 (to the extent applicable)
• The right to consequential damages under Bi-Economy Market and Panasia Estates
• The right to challenge the appraisal award
• All rights not expressly waived herein

11. DEMAND FOR RESPONSE

The Insured demands a 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 timely respond or participate may:

• Constitute an unfair claim settlement practice under NY Ins. Law § 2601
• Support an application to compel appraisal and/or appoint an umpire under § 3408
• Serve as evidence of breach of the implied covenant of good faith and fair dealing

Please direct all correspondence to:

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

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL AND/OR APPOINT UMPIRE

[This application is made pursuant to NY Ins. Law § 3408]

SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF [________________________________]

PETITION TO COMPEL APPRAISAL AND/OR APPOINT UMPIRE PURSUANT TO NY INSURANCE LAW § 3408

COMES NOW [________________________________] ("Petitioner"), by counsel, and respectfully petitions this Court for an Order: (a) compelling [________________________________] ("Respondent") to participate in the appraisal process as provided by the New York Standard Fire Policy (NY Ins. Law § 3404); and/or (b) appointing a competent and disinterested umpire pursuant to NY Insurance Law § 3408.

I. STATUTORY AUTHORITY

1. NY Insurance Law § 3404 sets forth the New York Standard Fire Policy, which includes a mandatory appraisal clause. Section 3404(g) provides that the appraisal clause provisions "shall be binding on all parties to the contract of fire insurance."

2. NY Insurance Law § 3408 provides the procedure for selection of an umpire when the two appraisers cannot agree. The application shall be made to "a justice of the supreme court or county judge in the county where the property is located" on "five days' notice in writing to the other party."

II. FACTS

3. Petitioner is the named insured under Policy No. [________________________________] issued by Respondent, covering property located at [________________________________] in [________________________________] County, New York.

4. On or about [__/__/____], the insured property sustained damage from [________________________________].

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

6. On [__/__/____], Petitioner made written demand for appraisal and notified Respondent of Petitioner's competent and disinterested appraiser, [________________________________].

7. [Choose applicable]:

☐ Respondent failed to appoint an appraiser within twenty (20) days as required by the standard fire policy. This Petition seeks an order compelling Respondent to appoint an appraiser or, alternatively, appointing an appraiser on Respondent's behalf.

☐ Both parties appointed appraisers. The appraisers have been unable to agree on an umpire despite the passage of fifteen (15) days. This Petition seeks appointment of an umpire under § 3408.

☐ Both of the above.

III. LEGAL STANDARD

8. The appraisal clause is mandatory and binding under § 3404(g). Courts routinely enforce appraisal clauses and appoint umpires under § 3408 when the statutory prerequisites are met.

9. The DFS has confirmed that there is no limitation on the right to appraise any component of ACV or amount of loss. OGC Opinion No. 01-03-05.

10. This Court has jurisdiction under § 3408 because the property is located in [________________________________] County.

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests:

A. An Order compelling Respondent to participate in appraisal under § 3404;

B. If Respondent has failed to appoint an appraiser, an Order requiring appointment within [____] days, or appointing one on its behalf;

C. An Order appointing a competent and disinterested umpire under § 3408;

D. Attorney's fees and costs of this application;

E. Such other relief as the Court deems just.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

NY Registration No.: [________________________________]

Firm: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

NOTICE OF PETITION

PLEASE TAKE NOTICE that upon the foregoing Petition, the undersigned will move this Court at the [________________________________] Courthouse, [________________________________] County, New York, on [__/__/____] at [____] a.m./p.m., or as soon thereafter as counsel can be heard, for an Order granting the relief requested.

Dated: [__/__/____]

Signature: ____________________________________

AFFIDAVIT OF SERVICE

[Must demonstrate five days' written notice under § 3408]

STATE OF NEW YORK )
COUNTY OF [________________________________] ) ss.:

I, [________________________________], being duly sworn, depose and state:

1. On [__/__/____], I served a true and correct copy of the foregoing Petition and Notice of Petition upon:

[________________________________]
[________________________________]
[________________________________]

by [________________________________] (method of service).

Signature: ____________________________________

Sworn to before me this [____] day of [________________________________], [____].

Notary Public: ____________________________________

PART III: APPRAISAL AWARD FORM — NEW YORK

APPRAISAL AWARD

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

Pursuant to the appraisal provision of the New York Standard Fire Policy (NY Ins. Law § 3404), the undersigned have appraised the loss, stating separately actual cash value and loss to each item:

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. NEW YORK-SPECIFIC PRACTICE NOTES

A. The Standard Fire Policy — NY Ins. Law § 3404

New York codifies the standard fire policy at NY Ins. Law § 3404. The appraisal clause appears in lines 123-140 of the second page of the standard policy. Key features:

• Either party can demand appraisal when they fail to agree on ACV or amount of loss
• 20 days to appoint appraisers
• 15 days for appraisers to select umpire
• If umpire not selected, judge of court of record appoints one
• The award of the appraisers, or any two, when filed with the company shall be binding

Section 3404(g) makes the appraisal provisions binding on all parties.

B. NY Ins. Law § 3408 — Umpire Selection Procedure

Section 3408 provides a specific statutory procedure for umpire selection:

• Application to a Justice of the Supreme Court or County Judge
• Must be in the county where the property is located
• Five days' written notice to the other party
• This is a distinct statutory procedure — not under CPLR Article 75

C. DFS OGC Opinion No. 01-03-05 — Broad Appraisal Scope

The DFS opinion provides an expansive reading of the appraisal right:

• No limitation on appraisal for any component of ACV or amount of loss
• This means the appraisers can address any disputed aspect of the value or damage, as long as it is a valuation question and not a coverage question

D. CPLR Article 75 — Limited Applicability

CPLR Article 75 governs arbitration in New York. Some courts have applied Article 75 principles to appraisal by analogy, but appraisal under the standard fire policy is generally governed by the specific provisions of §§ 3404 and 3408, not by CPLR Article 75. Practitioners should be cautious about conflating the two.

E. Competence and Disinterestedness

The classic New York case on appraiser qualifications is Kiernan v. Dutchess Co. Mut. Ins. Co., 150 N.Y. 190 (1896), which addressed appraiser competence and independence. An appraiser must be genuinely disinterested — not employed by or financially dependent on either party.

F. Consequential Damages — Bi-Economy Market

Bi-Economy Market, Inc. v. Harleysville Ins. Co., 10 N.Y.3d 187 (2008) allows consequential damages for breach of an insurance contract where such damages were within the contemplation of the parties. This is significant because:

• Traditional New York law limited recovery to the policy benefits themselves
• Bi-Economy opened the door to damages for business losses, additional living expenses beyond policy limits, and other consequential harms
• The appraisal process does not shield the insurer from consequential damage liability

G. Prejudgment Interest

Under CPLR § 5001, prejudgment interest runs from the date of the breach. If the insurer unreasonably delays payment, interest may accrue from the date the claim should have been paid, not from the date of the appraisal award.

15. SOURCES AND REFERENCES

New York Statutes

• NY Ins. Law § 3404 — Fire Insurance Contracts; Standard Policy Provisions — https://www.nysenate.gov/legislation/laws/ISC/3404
• NY Ins. Law § 3408 — Umpire Selection Procedure — https://law.justia.com/codes/new-york/isc/article-34/3408/
• NY Ins. Law § 2601 — Unfair Claim Settlement Practices
• NY CPLR Article 75 — Arbitration — https://www.nysenate.gov/legislation/laws/CVP/A75

NY DFS Opinions

• OGC Opinion No. 01-03-05 — Standard Fire Insurance Policy: Appraisal — https://www.dfs.ny.gov/insurance/ogco2001/rg103061.htm
• OGC Opinion No. 05-04-24 — Appraisal Clause — https://www.dfs.ny.gov/insurance/ogco2005/rg050424.htm

New York Case Law

• Bi-Economy Market, Inc. v. Harleysville Ins. Co., 10 N.Y.3d 187 (2008) — Consequential damages
• Panasia Estates, Inc. v. Hudson Ins. Co., 10 N.Y.3d 200 (2008) — Companion case
• Kiernan v. Dutchess Co. Mut. Ins. Co., 150 N.Y. 190 (1896) — Appraiser qualifications

Other Resources

• NY Insurance Law Article 34 — https://www.nysenate.gov/legislation/laws/ISC/A34
• NY Department of Financial Services — https://www.dfs.ny.gov/

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. New York insurance appraisal procedures are governed by NY Ins. Law §§ 3404, 3408, and related provisions. An attorney licensed in New York 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