Your insurance claim was approved, but the carrier’s number is wrong. You know the repairs cost more. You’ve argued, supplemented, and negotiated. They won’t budge.
Now what?
What the Appraisal Clause Is
Almost every property insurance policy in Louisiana contains an appraisal clause. It’s a dispute resolution mechanism specifically for disagreements about the amount of a loss — not whether the loss is covered, but how much it’s worth.
Either side — you or the carrier — can invoke it.
How the Process Works
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Invocation. Either party sends written notice demanding appraisal. This triggers the process.
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Each side picks an appraiser. You select yours, the carrier selects theirs. These are licensed professionals who independently assess the damage and determine the loss amount.
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The two appraisers pick an umpire. If the appraisers can’t agree on a value, the umpire breaks the tie. Agreement by any two of the three (your appraiser + umpire, or carrier’s appraiser + umpire) sets the binding amount.
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Each side pays their own appraiser. The umpire’s fee is typically split.
When to Use It
Appraisal makes sense when:
- You’ve negotiated with the carrier and hit a wall on the dollar amount
- The gap between your estimate and the carrier’s estimate is significant
- The carrier agrees the loss is covered but disputes the scope or pricing
- Supplement after supplement keeps getting denied or reduced
Appraisal does not help when the dispute is about coverage (whether the damage is covered at all). That’s a denial issue, not an amount issue.
The Strategic Advantage
Here’s why appraisal can be powerful: your appraiser sees the damage independently. If you’ve done the work — documented every item, cited the codes, provided manufacturer specs — your appraiser has everything they need to justify the real repair cost.
Carriers often settle before the umpire gets involved, because a well-documented appraisal submission makes the outcome predictable. They’d rather negotiate a fair number than risk an umpire award that goes even higher.
Getting Help
If you’re considering invoking the appraisal clause, talk to us first. We can review your claim, assess whether appraisal is the right move, and connect you with qualified appraisers who understand Louisiana construction and code requirements.