The insurance landscape in Texas is seeing a shift in how appraisal clauses are invoked during claim disputes. Appraisal is a contractual process used to determine the 'amount of loss' when a homeowner and an insurer disagree on the cost of repairs.
In recent months, more carriers have updated policy language to clarify what is appraisal-eligible. It is important to note that appraisal is generally intended to settle price and quantity differences, not to determine if coverage exists for a specific event.
Key Considerations
When entering appraisal, both the insurer and the policyholder select an independent appraiser. If these two cannot agree, a neutral umpire is brought in to make a final determination. This process is often faster than litigation but requires a clear understanding of the policy terms.
Adjusters are seeing a higher volume of files entering this stage as material costs fluctuate. Homeowners are encouraged to keep detailed records of all communication and photos taken immediately following a storm event to assist in these evaluations.