The appraisal clause is one of the most powerful — and underused — tools available to Texas homeowners in property insurance disputes. When you and your insurer disagree on the amount of loss, appraisal provides a faster, less expensive path to a higher payout than full litigation.
What Is the Appraisal Clause?
Most Texas homeowners policies contain an appraisal clause that allows either party — the policyholder or the insurer — to demand an independent appraisal when they disagree on the amount of loss. The process uses two independent appraisers and an umpire to resolve the dispute without going to court.
How the Appraisal Process Works
- Either party demands appraisal in writing
- Each party hires an independent, qualified appraiser
- The two appraisers attempt to agree on the loss amount
- If they disagree, they jointly select a neutral umpire
- A decision agreed to by any two of the three parties (the two appraisers or one appraiser and the umpire) is binding
Strategic Considerations
Appraisal resolves the amount of loss — not coverage issues. If your insurer is disputing whether the damage is covered at all (rather than how much it's worth), appraisal may not be the right tool. CDF Law evaluates whether appraisal or direct litigation is the stronger strategy for your specific claim.
Choosing the Right Appraiser
Your appraiser must be independent — they cannot have a financial interest in the outcome beyond their appraisal fee. CDF Law maintains relationships with qualified, experienced appraisers across all property types and damage categories.