Insurance appraisal in Illinois
Illinois directs the Department of Insurance to set a standard fire policy, and the Department's rule requires policies to conform to it. In May 2025 an Illinois appellate court held in Zhao v. State Farm that a carrier cannot refuse appraisal just because the dispute is about how much of a home the storm damaged. Illinois also has a rule that makes the insurer pay the policyholder's appraisal costs in one situation.
At a glance
- Name an appraiser
- 20 days after receiving the written demand, in the State Farm homeowners form reviewed in Zhao. That form also requires itemized documentation of the dispute at least 10 days before the demand.
- Choose an umpire
- 15 days for the appraisers to agree on an umpire. In the Zhao form the appraisers first get 30 days to try to agree on the amount before they go to the umpire.
- If they cannot agree
- A judge of a court of record in the county where the property is. The Zhao form requires the requesting side to give 10 days' written notice before filing the application.
- Does appraisal pause the deadline to sue?
- Illinois law (215 ILCS 5/143.1) pauses a policy's suit deadline from the date proof of loss is filed until the claim is denied in whole or in part. The statute does not mention appraisal. Find your policy's suit period before you rely on it.
- Who may serve
- We found no Illinois license for property claim appraisers. The Zhao form asks for a competent and disinterested appraiser. More below
Deadlines in Illinois
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 awardPaymentState claims rule: 30 days once the amount is determined and undisputed
Illinois forms can add steps before and after the basic 20 and 15 days. The State Farm form in Zhao requires written, itemized documentation of the disputed items at least 10 days before a demand, gives each side 20 days after the demand to name an appraiser, lets the appraisers work for 30 days to agree on each item, and then moves to an umpire. If the appraisers cannot agree on an umpire within 15 days, either side may apply to a judge after giving the other side 10 days' written notice. The form also bars a demand once that party has sued over the amount of loss. Other carriers' forms differ, so read yours first.
Once the amount is set, the Department's claim-practices rule (50 Ill. Adm. Code 919.50) expects an offer of payment within 30 days after the insurer affirms liability, when the amount is determined and undisputed.
What the panel decides
Amount of loss, including the scope of the damage
In Zhao v. State Farm Fire & Casualty Co., 2025 IL App (2d) 240723, the carrier paid part of a hail claim and refused appraisal of the owner's claim for all of the windows, calling the disagreement a coverage dispute. The appellate court affirmed the order sending the dispute to appraisal. It held that whether the windows were damaged by the storm is a question of loss, not coverage, and that resolving some causation questions is necessarily part of appraisal. Questions of law and coverage still go to the court.
Illinois courts still keep real coverage questions out of appraisal. The court in Zhao distinguished Lytle v. Country Mutual, where the dispute was whether building-ordinance costs were covered, and FTI International v. Cincinnati Insurance, where the dispute turned on conflicting policy provisions. A disagreement about what the policy means stays with the court.
Who may serve
We found no Illinois license for property claim appraisers. The State Farm form in Zhao asks for a competent, disinterested appraiser and a competent, disinterested umpire. A contractor who will do the repairs, a public adjuster paid a share of the claim, or anyone employed by a party does not fit that description.
The award
Under the Zhao form a written report signed by any two, either the two appraisers or an appraiser and the umpire, sets the amount of loss of each disputed item and binds both sides. The form says appraisal is a non-judicial proceeding, that the award cannot be entered as a judgment, and that neither side waives any rights by taking part, including the carrier's right to decide coverage for each item. Illinois courts compare an appraisal clause to an arbitration clause for enforcement: where the dispute falls within the clause, a court must compel appraisal, as Zhao held. This guide does not list grounds for setting aside an Illinois award because we could not confirm them against a primary source.
Points particular to Illinois
Illinois 215 ILCS 5/397.05 is an unusual cost rule. When an insured requests appraisal under a fire and extended coverage policy, and the appraisers or the umpire uphold the insured's full amount of appraised loss, the insurer pays the insured's appraisal fee and the umpire's appraisal fee. The policy type is defined in 215 ILCS 5/143.13(b): a policy issued in Illinois on a home used mainly as a residence, up to a four-family building, and household or personal property tied to living there.
Zhao also settled that a late-notice defense does not stop appraisal. The carrier argued the owner reported the storm damage too late. The court said the policy preserves both sides' rights, so the defense can be argued after the appraisal if the matter continues, and it does not block the appraisal itself.
Illinois Insurance Code section 143.1 tolls a policy's suit-limitation period from the date proof of loss is filed, in the form the policy requires, until the claim is denied in whole or in part. It does not apply to life, accident and health, fidelity and surety, or ocean marine policies. The section says nothing about appraisal, so do not count on it to cover time spent in appraisal.
Common losses in Illinois
Each one links back to how we look at that kind of loss.
Questions
Does my Illinois homeowners policy have an appraisal clause?
Almost certainly. Illinois directs the Department of Insurance to set a standard fire policy and requires policies to conform to it, and homeowners forms carry their own appraisal paragraph. Look in the conditions section under the heading Appraisal.
How long do we have to name an appraiser in Illinois?
In the State Farm form reviewed in Zhao, 20 days after you receive the written demand, and the form asks for itemized documentation of the dispute at least 10 days before a demand is made. Other forms differ, so check your own.
Who chooses the umpire in Illinois if the appraisers cannot agree?
A judge of a court of record in the county where the property is, when either side applies. In the Zhao form the appraisers have 15 days to agree on an umpire first, and the side applying must give 10 days' written notice.
Can the appraisers decide whether my loss is covered in Illinois?
No. Under Zhao they can decide the amount and extent of the damage, including some questions about what the storm caused. Whether the policy covers the loss and what the policy means stay with the court.
Does demanding appraisal pause the deadline to sue in Illinois?
The statute does not mention appraisal. Section 143.1 pauses a suit deadline from the date proof of loss is filed until the claim is denied in whole or part. Check your policy's suit period and ask whether proof of loss has been filed.
Who pays for the appraisers in Illinois?
Each side usually pays its own appraiser and shares the umpire. For fire and extended coverage policies on homes, section 397.05 makes the insurer pay the insured's appraisal fee and the umpire's fee when the insured's full appraised amount is upheld.
Before you decide anything
Has a claim in Illinois 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.