The appraisal clause is a provision in most Texas homeowner policies that resolves disputes about the amount of loss. Each side hires an appraiser; if those two disagree, an umpire decides. The result is generally binding.
Key facts
- Appraisal applies to amount-of-loss disputes only — not coverage disputes.
- Each party hires its own appraiser at its own expense.
- If the two appraisers disagree, they jointly select an umpire. The umpire's decision (joined by at least one appraiser) is binding.
- Umpire fees are typically split 50/50.
- Appraisal is typically faster than litigation — often 30–90 days vs. 1–3 years.
Step-by-step
- 1
Confirm appraisal applies
Disputes about coverage (whether something is covered) generally cannot go to appraisal. Disputes about amount can.
- 2
Invoke the clause in writing
Submit a formal written demand for appraisal to the carrier citing the policy provision.
- 3
Each side appoints an appraiser
Choose an independent, qualified appraiser. The carrier names theirs.
- 4
Appraisers attempt to agree on loss amount
They inspect, exchange estimates, and try to reach agreement.
- 5
Umpire selection if needed
If they cannot agree, both jointly select an umpire (or petition a court to appoint one).
- 6
Binding award is issued
The umpire's decision, joined by either appraiser, becomes the binding amount of loss.
Frequently asked questions
Is appraisal the same as arbitration?+
No. Appraisal is narrower — it resolves amount-of-loss only. Arbitration can cover broader disputes.
Do I need an attorney to invoke appraisal?+
Not required, but many homeowners consult one before invoking, especially for higher-value claims.
Is the appraisal decision binding?+
Generally yes, subject to limited grounds for challenge (fraud, manifest mistake, etc.). Consult an attorney for specifics.
How much does appraisal cost?+
You pay your own appraiser plus half the umpire fee. Total cost is usually a fraction of litigation.