What is the appraisal process for a disputed claim amount in Alabama?

When you and your insurer agree a loss is covered but disagree on what it is worth, most Alabama property policies have a built-in process for resolving exactly that disagreement.

When does appraisal apply, and when does it not?

Appraisal clauses apply to disputes over the amount of a covered loss, not to whether the loss is covered in the first place. If your insurer denies coverage entirely, appraisal is not the right tool, an internal appeal or a complaint to the Alabama Department of Insurance is.

How does the appraisal process work?

Each side selects its own appraiser. The two appraisers then select a neutral umpire. If the two appraisers cannot agree on the loss amount, the umpire's decision, or the point where two of the three agree, sets the final figure.

Do I have to accept whatever the appraisers decide?

The exact binding effect depends on your policy's specific appraisal clause language, which is why checking your own policy for the exact terms matters before starting the process. See the decision-timeline guide for where appraisal fits relative to the standard 30-day decision deadline.

When would a Alabama policyholder actually use this?

A Gulf Shores homeowner and their insurer agree that wind damage to a roof is covered, but disagree on whether the repair cost is $8,000 or $14,000. Rather than litigate the dollar amount, the policy's appraisal clause lets each side name an appraiser, the two appraisers name a neutral umpire, and the resulting figure becomes the payment amount, without disputing coverage itself.