Insurance appraisal in Pennsylvania
Pennsylvania writes a standard fire policy into statute, and that form includes an appraisal clause with 20 days to name appraisers and 15 days to agree on an umpire. The Pennsylvania Supreme Court held in Ice City v. Insurance Co. of North America (1974) that a carrier cannot simply refuse appraisal when liability is admitted and only the amount is in dispute.
At a glance
- Name an appraiser
- 20 days after the written demand under the statutory fire policy.
- 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 form allows 12 months from the start of the loss. Your own policy sets its own date.
- Who may serve
- No license set by the statute. It asks for a competent and disinterested appraiser and umpire. More below
Deadlines in Pennsylvania
The clock
- Day 0Written demandEither party, in writing
- By day 20Appraisers named20 days for each side
- By day 35Umpire chosen15 days for the appraisers to agree; if not, as the policy or state law provides
- 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 (statutory form)
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 then has 20 days to select a competent and disinterested appraiser and notify the other. The appraisers have 15 days to agree on an umpire. If they cannot, either side can ask a judge of a court of record in Pennsylvania to choose one.
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 the loss. Each side pays its own appraiser and the two split the umpire and other costs.
These numbers belong to the statutory fire policy, which covers fire, lightning and removal. The statute does not apply to all-risk policies and lets the Insurance Commissioner approve modified wording (40 P.S. § 636, subsections 3 and 4). Many homeowners and business forms carry their own appraisal clause, so read yours.
What the panel decides
Amount of loss only
Appraisal answers one question: how much is the loss. In Ice City, the Pennsylvania Supreme Court described the clause as reaching only the specific issues of actual cash value and the amount of loss. Other issues are left for negotiation or an ordinary lawsuit on the policy. The case involved an admitted loss, where only the dollar figure was in dispute, and it did not decide whether appraisal can reach a coverage question.
Who may serve
Pennsylvania 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 two sides split the umpire's cost. Some modern policy forms say competent and impartial instead. A person with a stake in the size of the award does not fit either wording.
The award
An agreed award is binding. A federal court applying Pennsylvania law has treated an appraisal award like an arbitration award, with only narrow review. Under the standard in 42 Pa.C.S. § 7341, an award in a nonjudicial arbitration may not be vacated or modified unless a party was clearly denied a hearing, or fraud, misconduct, corruption or another irregularity caused an unjust, inequitable or unconscionable award. A court can also check whether the appraisers stayed within their authority. In Maiden Creek T.V. & Appliance v. General Casualty (E.D. Pa. 2008), the court corrected an award for a math error and for an item the parties had already agreed on and the carrier had already paid, because that item was not in dispute when appraisal started. It refused to increase the award on other items, since the appraiser had signed it.
Points particular to Pennsylvania
In Ice City, Inc. v. Insurance Co. of North America, 456 Pa. 210, 314 A.2d 236 (1974), the carrier admitted liability for a fire loss but disputed the amount of lost income. The insured demanded appraisal in writing and the carrier refused. The Supreme Court held the carrier could not free itself from its statutory and contractual appraisal duty on its own say-so, and that the insured could sue in equity for specific performance of the clause.
The statutory fire form says the loss is payable 60 days after proof of loss is received and the amount is fixed by written agreement or by an award filed with the carrier.
Pennsylvania's claim-handling regulation, 31 Pa. Code § 146.7, sets pace for the claim itself. The carrier must accept or deny within 15 working days of a properly executed proof of loss, or tell you why it needs more time. If it needs more time, it must write again 30 days later and every 45 days after that.
The same regulation says a carrier may not keep negotiating directly with a claimant who has no lawyer as a limitation date nears without written notice that the limit may be expiring. For a first-party claim that notice is due 30 days before the deadline. The notice does not extend the deadline.
The statutory fire form gives 12 months from the start of the loss to sue. Appraisal is not a reason to wait. Check the suit clause in your own policy and note the date before you demand appraisal.
Common losses in Pennsylvania
Each one links back to how we look at that kind of loss.
Questions
Does my Pennsylvania policy have an appraisal clause?
Almost certainly. The statutory fire policy in 40 P.S. § 636 includes one. Homeowners and business policies often use their own wording, because the statute does not apply to all-risk policies and allows modified forms with the Commissioner's approval. Find it in the conditions under Appraisal.
How long do we have to name an appraiser in Pennsylvania?
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 Pennsylvania to choose one. Your own form may use different numbers.
Can the carrier refuse an appraisal demand in Pennsylvania?
Not where liability is admitted and only the amount is in dispute. In Ice City v. Insurance Co. of North America (Pa. 1974), the Supreme Court held that a carrier could not unilaterally reject the appraisal procedure, and that the insured could ask a court to enforce the clause.
Can the appraisers decide whether my loss is covered in Pennsylvania?
No. They set the amount of loss. Ice City describes the clause as reaching only actual cash value and the amount of loss, with other issues left to negotiation or an ordinary lawsuit on the policy.
Does demanding appraisal pause the deadline to sue in Pennsylvania?
Nothing in the statute says so. The statutory fire form allows 12 months from the start of the loss. Your policy may state its own date. Note it before you demand appraisal. If the carrier knows you have no lawyer, it must send written notice 30 days before a limit expires.
Do appraisers need a license in Pennsylvania?
The statute sets no license. It asks that each appraiser and the umpire be competent and disinterested. Some policy forms say competent and impartial.
Before you decide anything
Has a claim in Pennsylvania 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.