Insurance appraisal in Delaware
Delaware does not write an appraisal clause into property policies that we could find, so your policy sets the steps. It does add a backstop in 18 Del. C. 331: if a homeowners policy does not carry an appraisal or arbitration clause in a form the Department of Insurance approved, the insurer must arbitrate amount-of-loss disputes through the Department. Once appraisal is invoked, the Delaware Supreme Court treats it as binding on the amount.
At a glance
- Name an appraiser
- Set by your policy. Many standard forms give each side 20 days after a written request.
- Choose an umpire
- The two appraisers choose the umpire. Many forms give them 15 days.
- If they cannot agree
- Under the common form, either side asks a judge of a court of record to choose the umpire. Check which court your policy names.
- Does appraisal pause the deadline to sue?
- No automatic pause. In Closser the policy required suit within 12 months of the fire, and the Supreme Court refused to rule that appraisal stops that clock as a matter of law. It did let the insured argue the insurer was estopped because of how it handled the appraisal demand.
- Who may serve
- No appraiser license that we found. The policy usually requires a competent, impartial or disinterested appraiser. More below
Deadlines in Delaware
The clock
- Day 0Written demandEither party, in writing
- By day 20Appraisers named20 days for each side
- By day 35Umpire chosen15 days, or a court appoints
- On siteInspectionBoth estimates, line by line
- The awardAward signedAny two of three
- After the awardPaymentPer policy and state rules
Appraisal begins with a written demand under your policy. Many standard forms give each side 20 days after the request to choose an appraiser, give the appraisers 15 days to agree on an umpire, and let either side ask a judge of a court of record to choose the umpire after that. The numbers in your own policy control, so read the Appraisal condition and count from the date the request was received.
Note your suit deadline before you start. Delaware policies can set a short period. The one in Closser required suit within 12 months after the inception of the loss, and the court read that as the date of the fire. If the carrier does not name an appraiser or answer, keep copies of every letter. In Closser, that silence is what let the insured argue the insurer could not rely on the one-year clause.
What the panel decides
Amount of loss, which can include cause and repair cost
Appraisers decide the amount of loss. A federal court applying Delaware law, in CIGNA Ins. Co. v. Didimoi Property Holdings, N.V., 110 F. Supp. 2d 259 (D. Del. 2000), read "amount of loss" to include the cause of the loss and the cost of repair. The Delaware Supreme Court cited that decision in AIU Ins. Co. v. Lexes, 815 A.2d 312 (Del. 2003), for the point that appraisers may decide cause of loss as part of the amount, while coverage and exclusions are legal questions for the court.
Lexes adds a limit. Whether appraisers had authority to award something that exceeds the policy limits or the scope of coverage is a question of law, and a party can go to court on it even though the policy calls for binding appraisal. Under 18 Del. C. 331, coverage disputes are also excluded from the Department's arbitration.
Who may serve
We found no Delaware license for party-appointed appraisers. The qualifications come from the policy, which usually asks for a competent appraiser who is impartial or disinterested. We did not find a Delaware appellate decision on whether a contingency fee disqualifies an appraiser, so read the exact word your policy uses. If you use the Department's homeowners arbitration instead, the panel is three people: one Delaware attorney and two licensed insurance adjusters or appraisers.
The award
In Closser v. Penn Mutual Fire Insurance Co., 457 A.2d 1081 (Del. 1983), the Delaware Supreme Court described an invoked appraisal clause as a mandatory form of arbitration that precludes recourse to the courts on the amount. Courts still decide whether the appraisers stayed inside their authority. Lexes held that an insurer could go to court to ask whether the appraisers had awarded items the policy excludes or amounts above the limits. We did not find a Delaware decision that lists every ground for setting an award aside, so we do not state a complete list here.
Points particular to Delaware
18 Del. C. 331 is unusual. It requires insurers that cover homeowners' risks to arbitrate disputes over the amount owed on a claimed loss, unless the policy has an arbitration or appraisal provision in a form the Insurance Department approved. The Commissioner or the Commissioner's nominee runs the arbitration, and coverage disputes are excluded.
To use the Department's arbitration, the request must be in writing and mailed to the Insurance Commissioner within 90 days after the insurer makes a settlement offer or denies coverage or liability (18 Del. C. 331(d); 18 DE Admin. Code 901-5.3). The filing fee is $50 (statutory cap $75), and the Department expects the parties to have tried to resolve the matter informally first. A three-member panel decides: one Delaware attorney and two licensed insurance adjusters or appraisers.
Department arbitration is not final. Either party can ask for a new trial in Superior Court by filing notice of appeal within 90 days after the arbitration decision (331(d)). Taking part does not waive any rights.
Closser is also the main Delaware case on suit deadlines. The court held the policy's 12-month period ran from the date of the fire, not from the denial. It said appraisal could affect when an insured files suit because the clause has no time limits of its own, but it did not rule that appraisal stops the clock. It sent the case to trial on whether the insurer was estopped, after it failed to name its own appraiser within the policy's 20 days and then went silent.
Common losses in Delaware
Each one links back to how we look at that kind of loss.
Questions
Does my Delaware homeowners policy have an appraisal clause?
Most property policies do, but Delaware does not require the exact clause by statute that we could find. If your homeowners policy has no appraisal or arbitration clause in a form the Department of Insurance approved, 18 Del. C. 331 sends amount-of-loss disputes to the Department's arbitration.
How long do we have to name an appraiser in Delaware?
Your policy sets it. Many standard forms say 20 days after the written request. Read the Appraisal condition and count from the date you received the request.
Who chooses the umpire if the appraisers cannot agree?
Under the common form, either side can ask a judge of a court of record to choose the umpire after the appraisers fail to agree for the period in the policy, often 15 days.
Can the appraisers decide whether my loss is covered in Delaware?
They decide the amount of loss, which a federal court applying Delaware law has read to include the cause of the loss and the cost of repair. Coverage and exclusions are for a court, and so is the question of whether appraisers went beyond their authority.
Does demanding appraisal pause the deadline to sue in Delaware?
Not automatically. In Closser the Supreme Court did not rule that appraisal stops the policy's one-year suit clock, though it allowed an estoppel argument based on the insurer's conduct. Note your deadline before you demand appraisal.
What is the Department of Insurance arbitration in Delaware?
It is a separate process under 18 Del. C. 331 for amount-of-loss disputes on homeowners claims where the policy does not have an approved appraisal or arbitration clause. You request it in writing within 90 days after the insurer's offer or denial, pay a $50 fee, and a three-person panel decides. Either side can appeal for a new trial in Superior Court within 90 days.
Before you decide anything
Has a claim in Delaware stalled on the number?
Tell us what happened and where. We'll read the policy and tell you plainly whether appraisal fits.
When you write to us
- We read the policy, the estimates on both sides and the letters that came with them.
- We tell you plainly whether appraisal fits the disagreement, and if it doesn't, who can help.
- If it fits, we confirm next steps in writing before anything starts.
Reviewed against the sources listed, October 2026. General information, not legal advice.