Appraisal Clause Breakdown

Typical appraisal clause

Key elements

Either may demand

• Policyholder or carrier
• Written demand
• Activates the clause

Amount-of-loss scope

• Panel decides amount
• Cannot decide coverage questions
• Panel bound by policy terms

Disinterested appraisers

• No prior conflict
• Professional competence
• Florida-licensed preferred

Umpire selection

• Agreed by appraisers
• Court-appointed if disagreement

Binding on two

• Either two appraisers without umpire
• Appraiser + umpire

Strategic considerations

• Invoke when amount is disputed but coverage isn't
• Cost: each pays own appraiser; umpire split
• Timing: 60-120 days typical
• Preparation matters (panel sees your documentation)

Limits of appraisal

• Doesn't decide coverage disputes
• Doesn't address bad-faith damages
• Binding on amount, not other issues
• Can't recover attorney fees typically