Insurance appraisal in New York
The appraisal clause most states use traces to New York's standard fire policy, which is printed in Insurance Law § 3404. Each side has 20 days after a written demand to name an appraiser, and the two appraisers have 15 days to agree on an umpire. Appraisal sets the amount of loss, and the two-year deadline to sue keeps running while it happens.
At a glance
- Name an appraiser
- 20 days after the written demand (Ins. Law § 3404).
- Choose an umpire
- 15 days for the two appraisers to agree.
- If they cannot agree
- A judge of a court of record in New York, on request of either side.
- Does appraisal pause the deadline to sue?
- Suit must be started within 24 months of the loss. The Court of Appeals held in Proc (1966) that the period is not paused while the claim is being worked out, and we found no ruling that demanding appraisal pauses it.
- Who may serve
- Section 3404 names no license. Each appraiser must be competent and disinterested. More below
Deadlines in New York
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 a filed award
A written demand from either side starts the clock. The other side has 20 days to name a competent and disinterested appraiser and tell the demanding side. The appraisers then have 15 days to agree on an umpire. If they cannot, either side can ask a judge of a court of record to select one. Send the demand in a form you can prove.
An itemized written award signed by any two of the three and filed with the insurer sets the amount. The statutory form makes the loss payable 60 days after the insurer receives proof of loss and the amount is fixed by agreement or by a filed award. Separately, the Department of Financial Services claim rules (11 NYCRR 216.6) give the insurer 15 business days after a complete proof of loss to accept or reject the claim in writing, and 5 business days to pay an agreed settlement.
What the panel decides
Amount of loss, not coverage
The panel fixes actual cash value and the amount of loss. In Matter of Delmar Box Co., 309 N.Y. 60 (1955), the Court of Appeals described appraisal as limited to those specific issues, with everything else left to an action on the policy. Whether the policy covers the loss, and what its words mean, are for a court. Which event caused which damage is less settled. A federal trial court in New York treated a dispute over which of two storms caused damage as a factual question for appraisal, but we did not find a ruling from the state's highest court on the point.
Who may serve
The statute calls for a competent and disinterested appraiser and umpire and names no license. The Department of Financial Services has advised that the statute does not let either side reject the other side's choice of appraiser. If a party thinks an appraiser is not competent or disinterested, that is a question of fact for a court (DFS Opinion 05-04-24). An appraiser with a stake in the outcome gives the other side something to challenge.
The award
A filed award signed by two of the three sets the amount of loss. New York courts will set an award aside for misconduct in a legal sense, such as refusing to consider relevant evidence of value. In Gervant v. New England Fire Ins. Co., 306 N.Y. 393 (1954), the umpire and one appraiser looked only at replacement cost less depreciation and would not hear other evidence of value, and the Court of Appeals upheld the order setting the award aside. When an award is set aside through no fault of the insured, the insured does not have to go through appraisal again and may sue on the policy (Gervant; Matter of Stanz, 4th Dep't 2023).
Points particular to New York
Suit deadline. The standard policy requires suit within 24 months of the inception of the loss. In Proc v. Home Ins. Co., 17 N.Y.2d 239 (1966), the Court of Appeals counted the period from the fire itself and refused to pause it while the insured filed proofs and negotiated. A 2017 New York trial court decision, MZM Real Estate Corp. v. Tower Ins. Co., enforced the two-year limit against an owner who had demanded appraisal and rejected the idea that finishing appraisal is a precondition to suing. The Court of Appeals has refused to enforce the two-year period where a policy condition, such as finishing repairs for replacement cost, could not be met in time (Executive Plaza, LLC v. Peerless Ins. Co., 2014). Do not count on that exception. Find the date early.
Valuation standard. Actual cash value under the standard fire policy is not replacement cost less depreciation alone. Gervant holds that the fact finder looks at all pertinent evidence of value, such as original cost, qualified opinion and the property's use. A DFS opinion also confirms that either side may take any component of actual cash value or loss to appraisal, even one the parties agreed on earlier, when they disagree on the total (OGC Opinion 01-03-05).
Claim handling rules. Regulation 64, 11 NYCRR 216.6, requires the insurer to accept or reject a claim in writing within 15 business days of a complete proof of loss. If it needs more time it must say why in the same period and send a status letter every 90 days while the claim stays open. An agreed settlement must be paid within 5 business days.
Common losses in New York
Each one links back to how we look at that kind of loss.
Questions
Does my New York homeowners policy have an appraisal clause?
Almost certainly. The standard fire policy in Insurance Law § 3404 includes one, and homeowners forms carry a matching clause. Look in the policy's conditions, usually under the heading Appraisal.
How long do we have to name an appraiser in New York?
20 days after the written demand. The two appraisers then have 15 days to agree on an umpire.
Who chooses the umpire in New York if the appraisers cannot agree?
After 15 days, either side can ask a judge of a court of record in New York to select the umpire.
Can the appraisers decide whether my loss is covered in New York?
No. The panel sets actual cash value and the amount of loss. Coverage and policy wording are for the courts.
Does demanding appraisal pause the deadline to sue in New York?
We found no ruling that it does. The standard policy allows 24 months from the loss, and the Court of Appeals has refused to pause that period while a claim is being worked out. Note the date before you demand appraisal.
Do appraisers need a license in New York?
Section 3404 does not require one. Each appraiser must be competent and disinterested. Neither side can simply reject the other's pick, but a court can decide a challenge.
Before you decide anything
Has a claim in New York 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.