Appraisal Clause and Umpire
Also called: insurance appraisal, appraisal process, umpire, appraisal award, disinterested appraiser
Homeland Public Adjusters · Last reviewed: October 2026
The appraisal clause is a provision in most property policies that lets either the policyholder or the insurer demand appraisal when they disagree on the amount of a covered loss. Each side selects a competent, disinterested appraiser; the two appraisers choose an umpire; an agreement by any two of the three sets the amount of loss and is binding. Appraisal decides how much, not whether the loss is covered.
Full guide: The Florida Property Insurance Appraisal Process, Explained
How the process works
- Demand. One side sends a written demand for appraisal under the policy clause. The other side names its appraiser within the time stated (often 20 days).
- Appraisers. Each appraiser inspects, prices the loss and exchanges an itemized estimate. Appraisers must be competent and disinterested; a contingency-fee public adjuster on the same claim is usually not treated as disinterested.
- Umpire. The appraisers agree on an umpire. If they cannot, either side may ask a court to appoint one. The umpire decides only the items the appraisers dispute.
- Award. An award signed by any two of the three is binding on the amount of loss. The insurer then pays per the policy, less deductible and any prior payments, and may still assert coverage defenses it reserved.
What appraisal can and cannot decide
Appraisal fixes the amount: scope of damage, repair cost, depreciation, O&P, ALE amount. It does not decide coverage questions: whether the cause of loss is excluded, whether notice was late, whether a misrepresentation voids the policy. Courts in Florida and New Jersey let appraisal panels decide causation to the extent it is needed to price the loss (what was storm damage versus pre-existing), while coverage disputes stay with the court. A carrier that disputes coverage must say so before appraisal or risk waiving it.
Florida
Florida’s mediation statute, §627.7015, gives residential policyholders a Department of Financial Services mediation option before appraisal or litigation. The insurer must notify you of that right at policy issuance and when a claim is filed; under subsection (7), if the insurer fails to give that notice, or if either party rejects a mediation result the insurer requested, the policyholder is not required to submit to appraisal before suing. Appraisal is otherwise a policy condition, and Florida courts generally compel it when the amount of a covered loss is in dispute. Umpires and appraisers are not licensed by the state; the Windstorm Insurance Network’s Certified Property Appraiser and Umpire (CPAU) designation is the recognized credential, and our Nelson Avila holds it through Skyland Claims Resolution for appraisal and umpire work independent of Homeland’s public adjusting.
New Jersey
New Jersey policies carry the same ISO appraisal clause, and New Jersey courts treat appraisal as the parties’ agreed method to fix the amount of loss, distinct from arbitration. Carriers must still meet the N.J.A.C. 11:2-17.7 deadlines while appraisal proceeds; invoking appraisal is not a reason to stop communicating. There is no state mediation program equivalent to Florida’s.
When to use it, and when not to
Appraisal is the right tool when coverage is admitted and the carrier’s number is wrong: it is faster and cheaper than litigation and the award is binding. It is the wrong tool when the carrier has denied coverage, when the policy’s terms are ambiguous, or when the claim is small enough that appraiser and umpire fees would eat the difference. A public adjuster prepares the estimate that the appraisal is fought over; see public adjuster fees for how that fee works.
Frequently asked questions
Who pays for the appraisal?
Is an appraisal award final?
Can my public adjuster be my appraiser?
How long does appraisal take?
Related terms
A policy exclusion is a provision that takes a cause of loss, a type of property, or a situation out of coverage that the insuring agreement would otherwise provide.
A proof of loss is a sworn, signed statement from the policyholder setting out the date and cause of the loss, the property involved, the interest of the insured and others, other insurance, and the…
Recoverable depreciation is the money your insurer withholds from a replacement-cost claim payment until you repair or replace the damaged property.
Overhead and profit (O&P) is the general contractor's charge for running the job: overhead is the cost of doing business (office, insurance, supervision, permits), and profit is the margin.
If this is your loss, call Homeland before you talk to the insurance company: Florida (305) 783-3777, New Jersey (732) 517-3777, 24 hours. A licensed public adjuster reviews the claim for free and calls you back right away. No Recovery, No Fee.
Sources
This article is for general information only and is not legal or insurance advice. Statutes, regulations and policy wording change, and how they apply depends on your own policy and the facts of your claim. Homeland Public Adjusters is a public adjusting firm, not a law firm.
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