What is the insurance appraisal process and when does it apply?

The appraisal clause is one of the most useful and least understood tools available to Georgia policyholders. It appears in most standard homeowners and commercial property policies, though the exact language varies by carrier. The clause typically activates when you and your insurer agree that a covered loss occurred but disagree on how much it is worth.

Here is how it usually works. Either you or the insurer can demand appraisal in writing once a disagreement on value exists. Each party then selects a competent and impartial appraiser. The two appraisers try to reach agreement on the amount of the loss. If they cannot agree, they jointly select a neutral umpire. The umpire considers both positions, and any two of the three must agree for the decision to be binding.

Appraisal only resolves the dollar amount of a covered loss. It does not resolve coverage disputes, meaning it cannot force an insurer to cover something they have denied on coverage grounds. If your insurer has denied the claim outright rather than offered a lower amount, you typically need a different remedy, such as filing a complaint with the Georgia DOI or consulting an attorney.

Costs matter in this process. You are responsible for your own appraiser’s fee, and the umpire’s fee is split equally between both parties. Hiring a qualified appraiser with experience in property loss valuation is critical. A good public adjuster can often serve as your appraiser or recommend one.

If you are unsure whether your policy has an appraisal clause or whether it applies to your situation, bring your policy to Olive Cover (operated by Olive Insurance Services, LLC) for a review. Knowing your options before escalating a dispute can save you time and money.