Insurance appraisal in Minnesota
Minnesota has required an appraisal clause in fire policies since 1895, and the wording sits in the Minnesota standard fire policy, Minn. Stat. § 65A.01. Each side has 20 days to name an appraiser. The Minnesota Supreme Court has held that deciding the amount of loss includes deciding what caused it, while a court still reviews anything that turns on the meaning of the policy.
At a glance
- Name an appraiser
- 20 days from the written demand (§ 65A.01, subd. 3). If a side does not name one, a presiding judge of the district court in the county of the loss may appoint one on the other side's written application, after five days' written notice.
- Choose an umpire
- 15 days for the two appraisers to agree on an umpire (§ 65A.01, subd. 3).
- If they cannot agree
- A presiding judge of the district court of the county where the loss occurs may appoint the umpire, on a party's written application with five days' written notice to the other.
- Does appraisal pause the deadline to sue?
- The statute has no pause for appraisal. The standard policy requires suit within two years after inception of the loss, and appraisal is generally treated as a step to take before suing.
- Who may serve
- The statute asks for a competent and disinterested appraiser and umpire. Minnesota's adjuster licensing law defines appraiser only for motor vehicle damage, so no license is tied to this role. More below
Deadlines in Minnesota
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 awardPayment60 days after proof of loss and the award is filed
Either side starts appraisal with a written demand when the insured and the insurer cannot agree on the actual cash value or the amount of loss. Each side then has 20 days to choose a competent and disinterested appraiser and tell the other. If one side does not, the other can apply in writing to a presiding judge of the district court of the county of the loss, with five days' written notice, to appoint that appraiser. The appraisers then choose a competent and disinterested umpire. If they cannot agree for 15 days, a judge may appoint the umpire on the same kind of application.
The appraisers state the actual value and the loss to each item separately. If they cannot agree, only their differences go to the umpire. A written, itemized award signed by any two of the three, filed with the insurer, determines the amount of actual value and loss. Each side pays its own appraiser and the two split the umpire and other expenses. The standard policy makes the loss payable 60 days after proof of loss, once the loss is fixed by written agreement or by the filing of an award.
What the panel decides
Amount of loss, including cause; coverage is for the court
In Quade v. Secura Insurance, 814 N.W.2d 703 (Minn. 2012), the Minnesota Supreme Court held that the phrase amount of loss, as it relates to the appraiser's authority, unambiguously lets the appraiser decide the cause of the loss. Storm damage and long-term deterioration in a roof is the example: the appraisers may separate loss from a covered event from a property's pre-existing condition.
The court also drew a boundary. Appraisers may not construe the policy or decide whether the insurer should pay. Coverage questions, such as whether damage is excluded, remain legal questions for the district court, and the court said that an appraisal panel's decision will be subject to review there. Whether an award is conclusive on all issues depends on the nature of the damage, the possible causes, the dispute and the structure of the award. That is why we ask for itemized awards that show what each figure covers.
Who may serve
The statute requires a competent and disinterested appraiser from each side and a competent and disinterested umpire. Minnesota's adjuster licensing chapter (72B) defines appraiser only for motor vehicle physical damage, so it does not set a license for someone who serves on a property appraisal panel. The same chapter does license public adjusters, defined as people who, for compensation, act for the insured in negotiating or settling a first-party property claim, and independent adjusters. Disinterested means no stake in the outcome. A contractor who will do the repair work, or anyone else with a financial interest in the number, is the kind of person the word is aimed at.
The award
A written award, itemized, signed by any two and filed with the insurer, determines the amount of actual value and loss (§ 65A.01, subd. 3). In Quade the court said an appraisal award does not stop the insurer from later having its liability decided by a court, and that if an award answers questions of liability outside the appraisal process, it can be challenged before the district court. To the extent it goes beyond the scope of appraisal and interprets policy exclusions, a court can review it.
We did not find a Minnesota case that sets out a complete list of grounds for setting aside the amount of loss itself, so we do not describe one here. What the sources do support is that the amount, once properly fixed, is the figure the policy tells the parties to use.
Points particular to Minnesota
Total loss on a building is carved out. The standard policy's appraisal clause applies to a failure to agree on actual cash value or the amount of loss except in case of total loss on buildings. Separately, § 65A.08, subd. 2 says that in a total loss the insurer pays the whole amount mentioned in the policy, in the absence of increased risk or intentional fraud.
Appraisal comes before suit. Quade says appraisal is generally intended to take place before suit is filed and is generally understood to be a condition precedent to suit. The court there reversed a ruling that had refused appraisal and sent the parties to it.
Policies with more than fire coverage. Under § 65A.01, subd. 1, a policy that combines fire with other perils need not copy the standard form word for word, but it must give the insured all the rights and benefits of the standard fire policy for fire. For wind or hail, your own policy's appraisal clause is the place to look. Quade involved a farmowners policy clause for wind damage.
Stand-alone hail policies have their own rule. Minn. Stat. § 65A.26 requires a policy of insurance against damage by hail to provide appraisal on ten-day clocks for naming the appraiser and agreeing on an umpire, makes the selection a condition precedent to suit unless waived, and requires suit within one year after the loss.
Claim-handling floor. Under Minn. Stat. § 72A.201, subd. 4, it is an unfair settlement practice for an insurer to fail to acknowledge a claim within ten business days, or to fail to complete its investigation and accept or deny within 30 business days, unless it explains in time why more is needed.
Common losses in Minnesota
Each one links back to how we look at that kind of loss.
Questions
Does my Minnesota homeowners policy have an appraisal clause?
Almost certainly. Minnesota requires its standard fire policy provisions in fire insurance, and those provisions include an appraisal clause. A policy that covers fire and other perils must give you the rights of the standard form for fire, and many policies repeat the clause in their own words. Look in the conditions under Appraisal.
How long do we have to name an appraiser in Minnesota?
Twenty days from the written demand. If a side does not name one, a presiding judge of the district court in the county of the loss may appoint one on the other side's written application.
Who picks the umpire in Minnesota if the appraisers cannot agree?
If the two appraisers fail for 15 days to agree, a presiding judge of the district court of the county where the loss occurred may appoint the umpire, on a party's written application with five days' written notice to the other.
Can the appraisers decide whether my loss is covered in Minnesota?
They can decide what caused the damage as part of setting the amount of loss. They cannot construe the policy or decide whether the insurer should pay. Coverage questions remain for the court, which can review an award that goes beyond appraisal. That is the Minnesota Supreme Court's holding in Quade v. Secura.
Does demanding appraisal pause the deadline to sue in Minnesota?
We found no rule that it does. The statute requires suit within two years after inception of the loss, with no pause for appraisal. Appraisal is generally treated as a step before suit, so note the date before you start.
Do appraisers need a license in Minnesota?
The statute asks for a competent and disinterested appraiser and umpire. Minnesota's adjuster licensing law defines appraiser only for motor vehicle damage, so it does not set a license for this role. Public adjusters and independent adjusters are licensed.
Before you decide anything
Has a claim in Minnesota 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.