Before you begin: is this an appraisal dispute?
Appraisal answers one question: how much does the covered loss cost? It works when the insurer agrees the damage is covered but offers less than it takes to repair. It does not decide whether something is covered, whether the insurer acted in bad faith, or whether a late notice defense applies. If the claim has been denied, start with a Delaware attorney.
Step 1: Pin down the disagreement
Gather the carrier’s complete, itemized estimate, your own contractor’s or independent estimate, your photos and the full policy, including endorsements. Compare the two estimates line by line. Many “disputes” turn out to be missing items that the adjuster will add once they’re documented in a supplement request.
Step 2: Send the written demand
If the gap remains, either party can demand appraisal in writing. Follow the policy’s instructions: who to send it to, what it should say and any time limits. Name your appraiser in the demand or within the response window. Keep a copy and proof of delivery.
Step 3: Both sides appoint appraisers
Each side picks its own appraiser. Many policies require the appraiser to be competent and impartial (or disinterested). Avoid choosing someone with a financial stake in the repair, such as the contractor who will do the work. Each side pays its own appraiser.
Step 4: The appraisers select an umpire
The two appraisers agree on an umpire. A good umpire has construction pricing knowledge, experience with the property type and no ties to either side. If the appraisers can’t agree within the policy’s timeframe, either party can usually ask a court of record in the state where the property is located to appoint one. The umpire’s fee is usually split equally.
Step 5: Inspection and valuation
Each appraiser inspects the property and builds or reviews a line-item estimate. Expect measurements, photos, moisture readings or test squares as needed. Your appraiser should explain every difference between their estimate and the carrier’s.
Step 6: The appraisers work the differences
The appraisers meet — in person, on site or virtually — and work through the estimates item by item. Most disputes narrow significantly here. Items they agree on are settled; the rest go to the umpire.
Step 7: The umpire decides what’s left
The umpire reviews the remaining items, often with a site visit and written submissions from both appraisers. The umpire then decides each item or the total.
Step 8: The signed award
When any two of the three sign, the award sets the amount of loss. Good award forms separate replacement cost and actual cash value and list categories such as dwelling, other structures and contents. Payment then follows under the policy’s terms, subject to deductibles, prior payments and limits.
How long does it take?
Simple residential claims often finish in six to twelve weeks after both appraisers are named. Large commercial claims, contents-heavy claims and panels needing an umpire hearing can take longer.
What it costs
You pay your own appraiser and usually half of the umpire. Fees may be flat, hourly or a percentage of the increase. Get the fee in writing before work begins, and run the numbers with our claim gap and fee estimator.