Insurance appraisal in Oregon
Oregon requires an appraisal clause in fire policies, with 20 days to name appraisers and 15 days to agree on an umpire. The Oregon Supreme Court held in Molodyh v. Truck Insurance Exchange (1987) that the award binds only the side that demanded appraisal. The side that did not keeps its right to a jury on the amount of loss.
At a glance
- Name an appraiser
- 20 days after the written demand (ORS 742.232).
- Choose an umpire
- 15 days for the two appraisers to agree on an umpire.
- If they cannot agree
- A judge of a court of record in the state where the property is located, on request of either side.
- Does appraisal pause the deadline to sue?
- The statute does not pause the suit deadline. The statutory fire policy allows 24 months from the start of the loss (ORS 742.240). Homeowners forms can differ.
- Who may serve
- No license set by the statute. It asks for a competent and disinterested appraiser and umpire. More below
Deadlines in Oregon
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 awardPaymentPayable 60 days after proof of loss and the filing of the award (ORS 742.238)
Either side starts appraisal with a written demand when you and the carrier cannot agree on the actual cash value or the amount of loss. Each side has 20 days to choose a competent and disinterested appraiser and notify the other. 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 in Oregon to choose.
The appraisers value each item and send the umpire only the items they disagree on. A written, itemized award signed by any two of the three, filed with the carrier, sets the actual cash value and loss. Each side pays its own appraiser and the two split the umpire and other costs.
This timetable is the one the statute requires in a fire policy. A homeowners policy that covers fire and many other perils may use its own wording if it gives at least substantially equal fire coverage (ORS 742.204). Read the clause in your policy.
What the panel decides
Amount of loss only
The panel sets actual cash value and the loss to each item. In Molodyh, the Oregon Supreme Court noted that the provision does not create arbitration of the insurer's liability or other matters under the policy. Coverage, policy language and bad faith stay with the courts.
Who may serve
Oregon does not set a license for appraisers or umpires in the appraisal statute. The standard is in the text: each appraiser, and the umpire, must be competent and disinterested. Each side picks and pays its own appraiser, and the umpire's cost is split. A person with a stake in the size of the award, such as the contractor who will do the repairs, does not fit the word disinterested. If your policy uses different words, such as impartial, the policy wording applies.
The award
Under Molodyh v. Truck Insurance Exchange, 304 Or 290, 744 P2d 992 (1987), the award binds the party that demanded appraisal. The party that did not demand it keeps its right under the Oregon Constitution (Article I, section 17) to have a jury decide the amount of loss. The Court said one party may not decide on its own that someone other than a jury will determine the issues. It affirmed the Court of Appeals on different grounds and sent the case back for a jury trial on the disputed amount. If you demand appraisal, expect to be held to the result. If the carrier demands it, you are not bound in the same way.
Points particular to Oregon
Because of Molodyh, who demands appraisal in Oregon is a real choice. A demand from you binds you to the award. A demand from the carrier does not bind you, and you can still take the amount to a jury.
The statutory fire policy gives 24 months from the start of the loss to sue (ORS 742.240). Nothing in the appraisal section extends that. Check your own policy for its suit clause and put the date on your calendar before you demand appraisal.
The statutory form makes a loss payable 60 days after proof of loss, once the amount is fixed by written agreement or by an award filed with the carrier (ORS 742.238).
In Director v. South Carolina Insurance Co., 49 Or App 179 (1980), the Court of Appeals held that when the insurers demanded appraisal of a destroyed building, the policyholders' lawsuit over policy provisions was premature. They had to finish appraisal first.
Common losses in Oregon
Each one links back to how we look at that kind of loss.
Questions
Does my Oregon homeowners policy have an appraisal clause?
Almost certainly. ORS 742.232 requires fire policies to carry an appraisal clause. Homeowners policies that cover many perils may use their own wording under ORS 742.204. Look for Appraisal in the conditions section.
How long do we have to name an appraiser in Oregon?
Twenty days after the written demand, under the statutory fire policy. 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 in Oregon to choose one.
Does the appraisal award bind both sides in Oregon?
Not always. Under Molodyh (Or. 1987), the award binds the side that demanded appraisal. The side that did not demand it keeps its right to a jury on the amount of loss.
Can the appraisers decide whether my loss is covered in Oregon?
No. The panel sets the amount of loss. Molodyh notes the provision does not provide arbitration of the insurer's liability or other policy matters. Those go to the courts.
Does demanding appraisal pause the deadline to sue in Oregon?
Nothing in the statute says so. The statutory fire policy allows 24 months from the start of the loss (ORS 742.240). Your policy may differ. Note the date before you demand appraisal.
Do appraisers need a license in Oregon?
The appraisal statute sets no license. It asks that each appraiser and the umpire be competent and disinterested.
Before you decide anything
Has a claim in Oregon 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.