How the Insurance Appraisal Process Works

When you and your insurance carrier disagree about the amount of loss on a covered claim, most policies include an appraisal clause that lets either party invoke a binding resolution process.

Step 1 — Invocation

Either party sends a written demand for appraisal. This is usually triggered when negotiations have stalled.

Step 2 — Each Side Picks an Appraiser

You select one competent, impartial appraiser, and the insurance carrier selects another. American Appraisals provides experienced appraisers who represent the policyholder's interests fairly.

Step 3 — The Two Appraisers Pick an Umpire

The appraisers select a neutral umpire. If they cannot agree, a court appoints one.

Step 4 — Inspection & Valuation

Both appraisers independently inspect the loss, compile estimates, and exchange positions.

Step 5 — The Award

Any two of the three (the two appraisers, or one appraiser plus the umpire) sign a binding award that sets the amount of loss.

The appraisal process is faster and cheaper than litigation — but it only resolves amount, not coverage.