Frequently Asked Questions

A property insurance appraisal is a structured dispute resolution process outlined in most property insurance policies. When a policyholder and their insurer disagree on the amount of loss from a covered event, either party can invoke the appraisal clause to have two independent appraisers and a neutral umpire determine the binding amount of loss.

The entire appraisal process—from demand to binding award—typically takes 30 to 90 days. This is significantly faster than litigation, which can take 12 to 24 months or longer.

Yes. The appraisal process is a mutual contractual right available to both the insured and the insurer when a genuine dispute over the amount of loss exists.

Appraisal resolves the 'amount of loss' through an independent process and results in a binding award within 30-90 days. Litigation is a court-based process that typically takes 12-24 months and costs significantly more. Note that appraisal and litigation address different questions—completing appraisal does not foreclose separate legal claims related to coverage disputes or claims handling.

Each party pays their own appraiser's fee. The neutral umpire's fee is split equally between the parties. Total costs vary by claim complexity but are generally a fraction of what litigation would cost. REG Consulting provides transparent fee quotes before engagement.

Failure to participate in the appraisal process following a valid demand may constitute a breach of the policy contract. The other party may seek a court order compelling participation or damages for breach.

An appraiser should be 'competent, disinterested' as required by policy language. This means they should have demonstrable experience in property damage estimation, construction costs, and insurance appraisal practice—and no direct financial interest in the outcome beyond their professional fee.

A public adjuster working on a contingency fee arrangement may be challenged as an 'interested' party under the policy's disinterestedness requirement. Parties should consult their policy language and consider appointing a fee-based, independent appraiser to avoid this issue.

The umpire is a neutral third party selected by the two appointed appraisers. The umpire reviews disputed items on which the appraisers cannot agree, may conduct their own inspection if warranted, and issues a binding decision. Any two of the three—both appraisers, or one appraiser and the umpire—can sign the final award.

Once both appraisers are named, they jointly identify qualified umpire candidates and attempt to agree on one. Selecting the umpire before property inspection is a best practice to avoid delays if disputed items remain later. If the appraisers cannot agree on a candidate, either party may petition the district court to appoint one.

Yes. Most commercial property policies contain an appraisal or arbitration clause. The process is similar to residential appraisal, though commercial claims often involve greater complexity in scope and valuation.

Most property insurance policies contain an appraisal clause, but language and requirements vary. Review your policy or contact your insurer or agent to confirm the specific appraisal provision.

The 'amount of loss' is the dollar value of damage covered by the policy. It includes the cost of repairs or replacement, minus applicable depreciation (for ACV policies) and subject to policy limits, deductibles, and coverage exclusions.