By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: The appraisal clause is a built-in dispute resolution tool in most Florida property policies. It lets a three-person panel, two party appraisers plus a neutral umpire, resolve disagreements over the amount of loss: scope, pricing, and depreciation. It does not decide coverage. The resulting award is generally binding on both parties.
What appraisal decides
- Amount of loss (scope, pricing, depreciation, ACV/RCV)
What appraisal does not decide
- Coverage (whether the loss is covered at all)
- Causation (whether a particular peril caused the damage): though this is contested
Who picks whom
Each side picks one appraiser. The two appraisers pick a neutral umpire (or the court appoints one if they can't agree).
Binding effect
An appraisal award is generally binding on both parties, though it can be challenged in narrow circumstances (fraud, umpire bias).