Understanding property insurance appraisal in Florida
Florida only: This page explains property insurance appraisal in Florida. It does not describe the requirements of other states. Even within Florida, appraisal depends on the specific insurance policy and applicable Florida law, including court decisions. These determine whether appraisal is available, how it proceeds, and which issues the panel may decide.
What is appraisal?
Appraisal is a process used to resolve disagreements between a policyholder and an insurance company about the amount of a property insurance loss. Depending on the policy and applicable law, disputes may involve repair costs, replacement costs, quantities, or the scope of damage.
For example, both sides may agree that a room sustained damage but disagree about the work required or its cost. Appraisal provides a structured way to evaluate that disagreement.
Who participates?
The policyholder’s appraiser: Selected by the policyholder to evaluate the disputed loss.
The insurance company’s appraiser: Selected by the insurer to perform a separate evaluation.
The umpire: A third participant selected through the procedure established by the policy and applicable law to address unresolved differences.
Appraisers must meet any applicable qualification, impartiality, or independence requirements.
How does the process usually work?
1. Review the policy. Identify the appraisal provision, requirements, and any deadlines.
2. Request appraisal. A party requests appraisal under the applicable provision. Some policies require mutual agreement or other prerequisites.
3. Select the panel. Each side selects an appraiser, and an umpire is selected through the required procedure.
4. Evaluate the loss. The appraisers review supporting information, develop their valuations, and may inspect the property.
5. Address disagreements. The appraisers attempt to agree. Unresolved issues may be submitted to the umpire.
6. Document the result. The determination is recorded in a written appraisal award. Under many policies, agreement by any two panel members establishes the amount of loss. The actual agreement and signature requirements depend on the policy and applicable law.
What does appraisal decide?
Appraisal generally determines the amount of loss. Coverage disputes may remain separate. The panel’s authority to address damage scope, causation, or related issues depends on the policy and applicable Florida law.
An award does not automatically mean that its entire amount is payable. Coverage terms, deductibles, limits, prior payments, and other applicable conditions may affect payment.
What does appraisal cost?
Under many policies, each party pays its own appraiser and shares the umpire’s fees and common appraisal expenses. Review the policy and service agreements for the actual allocation and charges.
What should you know before proceeding?
Appraisal can carry binding consequences. Review the applicable requirements, costs, and deadlines before participating. No particular valuation or increased payment is guaranteed.
This page provides general education and is not legal advice or an interpretation of any specific insurance policy.
Additional resources
Florida Department of Financial Services: Insurance Professionals
Florida Statutes, Section 627.70151: Appraisal; conflicts of interest