If your insurance company has offered you a settlement that seems unfair — or denied your claim entirely — you may not need to hire an attorney or go to court. Texas insurance policies include a powerful tool called the **appraisal clause** that most policyholders never use.
Here’s how it works and when to use it.
## What Is the Insurance Appraisal Clause?
The appraisal clause is a provision found in most Texas homeowner and commercial property insurance policies. It provides a formal mechanism to resolve disputes about **how much a loss is worth** — separate from the question of whether a loss is covered.
A typical appraisal clause reads something like:
*”If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire…”*
This process is binding — meaning once it concludes, both parties must accept the result.
## When to Use the Appraisal Clause
The appraisal process is appropriate when:
– **You and your insurance company disagree on the dollar amount** of your claim
– **The insurance company’s estimate is significantly lower** than contractor estimates
– **Your claim was underpaid** and negotiation has stalled
– **You want a faster resolution** than litigation would provide
**Important:** The appraisal clause addresses *valuation disputes* — how much the damage costs to repair. It does not resolve *coverage disputes* — whether a loss is covered at all. If your claim was denied because of a coverage exclusion, appraisal may not be the right tool.
## The Texas Appraisal Process Step by Step
### Step 1: Invoke the Appraisal Clause
Either party (you or the insurance company) can demand appraisal in writing. Review your policy for the specific language and timeline requirements.
### Step 2: Select Your Appraiser
You must select a **competent, disinterested appraiser** — someone with no financial stake in the outcome other than their fee. This is where hiring a licensed insurance appraiser like First Call Public Adjusters makes a critical difference.
Your appraiser should:
– Be licensed in Texas
– Have experience with your type of damage
– Be knowledgeable about Xactimate pricing and insurance estimates
– Have no conflict of interest with either party
### Step 3: Insurance Company Selects Their Appraiser
The insurance company selects their own appraiser, typically within 20 days of your demand.
### Step 4: Both Appraisers Attempt to Agree
The two appraisers review all damage documentation, inspect the property, and attempt to reach agreement on the value of the loss. In many cases, they can reach agreement without needing an umpire.
### Step 5: If They Disagree — The Umpire
If the two appraisers cannot agree, they jointly select a neutral **umpire**. The umpire reviews both appraisers’ assessments and makes a final determination.
An **award agreed upon by any two of the three** (your appraiser + umpire, or insurance appraiser + umpire) is binding on both parties.
### Step 6: Payment
Once the appraisal award is issued, the insurance company must pay within the timeframe specified in your policy (typically 5-20 days in Texas).
## Appraisal vs. Litigation: Why Appraisal Wins
| | Appraisal | Litigation |
|—|—|—|
| **Timeline** | 30-90 days | 1-3+ years |
| **Cost** | Appraiser fee (% of award) | Attorney fees + court costs |
| **Outcome** | Binding award | Uncertain verdict |
| **Stress** | Low | High |
| **Relationship** | Preserves policy | May terminate relationship |
## Common Questions About Texas Insurance Appraisal
**Can the insurance company deny my demand for appraisal?**
Generally no — if the appraisal clause exists in your policy and there is a genuine valuation dispute, the insurance company cannot refuse to participate.
**Does appraisal waive my right to sue?**
Typically no. Appraisal addresses valuation; you may still have claims related to bad faith or coverage interpretation that can be pursued separately.
**How much does it cost?**
Appraisers typically work on a percentage of the award or a flat fee. At First Call Public Adjusters, we discuss fee structures transparently before engagement.
**What if the umpire sides with the insurance company?**
You accept the award. This is why selecting the right appraiser is critical — experience and thorough documentation matter enormously.
## Why Choose First Call Public Adjusters for Appraisal
Ryan Lancon is a licensed insurance appraiser with deep experience in the Texas market. He brings:
– Knowledge of Xactimate pricing and insurance estimate methodology
– Experience with residential and commercial damage assessment
– Professional documentation using hail reports and infrared cameras
– Understanding of Texas insurance law and the appraisal process
– A track record of successful appraisal outcomes for Texas policyholders
## Is Appraisal Right for Your Situation?
If you’ve received an insurance settlement that seems unfair and negotiations have stalled, call us for a free consultation. We’ll review your policy, your claim, and the insurance company’s offer — and tell you honestly whether appraisal is the right path forward.
**First Call Public Adjusters**
**(817) 618-9884**
FirstCallPublicAdjusters@
Southlake, TX
*Licensed Insurance Appraiser | TX #1921679 | OK #3000772279 | CO #906301*