The appraisal clause is a standard feature in most Texas residential property policies. It serves as a dispute resolution mechanism to determine the specific value or amount of a loss without moving straight to litigation.
In recent months, we have observed more carriers invoking this clause specifically to address disagreements over 'matching' requirements and minor collateral damage. Both the homeowner and the insurer select an independent appraiser to evaluate the loss.
How the Result is Determined
If the two appraisers cannot agree, an unbiased umpire is selected to make the final decision. Once any two of the three parties sign an award, the amount is typically binding on both the insurer and the policyholder.
It is important to note that appraisal is generally used to determine the 'amount' of loss rather than 'coverage' issues. Homeowners should consult their policy language or a qualified professional to ensure they are following the correct timeline for filing an appraisal demand.