Somewhere in the "Conditions" section of your homeowners policy is a paragraph that most people never read and most carriers hope you never invoke. It is called the appraisal clause, and after a storm like September 11 it is the most useful sentence in the document.
What it says
If you and the carrier disagree on the amount of the loss, either side can demand appraisal. Each side picks a competent, impartial appraiser. The two appraisers pick an umpire. The appraisers each set the amount; if they agree, that is the award. If they do not, the umpire decides, and agreement between the umpire and either appraiser is binding on the amount.
What it is for
Appraisal resolves disputes about how much, not about whether. If the carrier says the hail damage is real but the roof can be repaired for $4,000 and your inspection says it needs a $22,000 replacement, that is an appraisal dispute. If the carrier says the damage is not covered at all, that is a coverage dispute and appraisal is not the tool.
In practice, most "denials" on Bexar County hail roofs are really amount disputes wearing a coverage costume: "the damage is cosmetic," "below deductible," "only the north slope." Texas courts have repeatedly sent those to appraisal.
Why carriers do not mention it
Because it works. The panel is independent, the process takes weeks rather than the years a lawsuit takes, and the award is binding on the dollar figure. Texas law also allows a carrier to avoid bad-faith exposure by paying an appraisal award promptly, which means carriers usually pay it.
How we use it
The demand is yours to make. When negotiation stalls, we prepare the written appraisal demand for you to sign and send, help you choose a competent, impartial appraiser, work toward an umpire from the pool of experienced San Antonio-area umpires, and hand the panel the documented scope. This is our specialty as a firm. Most of our Converse clients settle before appraisal is needed, because carriers know the demand is ready.
What it costs
You pay your appraiser and half the umpire's fee, and those costs come out of the recovery, alongside our contingent fee, which Texas caps at 10%. There is no filing fee, no lawyer required and no court.
General information for Texas policyholders, not legal advice. Your claim depends on your policy and your property. More from the blog.