Hawkeye Consulting
and Claim Service
What Is Property Claim Appraisal?
Many property policies include an “Appraisal” clause. It’s a built-in way to settle a dispute about how much a loss is worth—without having to immediately file a lawsuit.
In an appraisal, both sides still agree there is a covered loss. The disagreement is about the amount of loss:
The policyholder (or their representative) picks an appraiser
The insurance company picks an appraiser
If those two can’t agree, they bring in a neutral umpire to help make the final decision
The result is a signed “Appraisal Award” that sets the dollar amount the claim should be paid at under the policy.
Dan’s Roles:
Appraiser & Umpire
What Dan Does as an Appraiser
When Dan is named as an appraiser, his job is to independently determine what it reasonably costs to repair or replace the damaged property. That includes:
- Reviewing estimates, photos, reports, and correspondence from both sides
- Inspecting the property when needed to confirm damage and scope
- Preparing an independent, detailed estimate using industry tools (often Xactimate)
- Comparing line items, quantities, and pricing with the carrier’s estimate
- Meeting with the other appraiser to work through differences in scope and cost
- Working toward a fair, supportable number based on damage, codes, and industry standards
The goal is not to “match” the carrier or the policyholder – it’s to arrive at a defensible, reasonable amount of loss.
What Dan Does as an Umpire
When Dan serves as an umpire, he is a neutral third party. He is not there to take a side, but to help resolve the dispute when the two appraisers cannot agree.
As an umpire, Dan typically:
- Reviews each appraiser’s estimate, photos, and supporting documents
- Listens to both sides explain their position on scope and pricing
- Walks the property when needed to see the damage firsthand
- Asks questions about codes, methods of repair, and pricing assumptions
- Helps narrow the differences and, when required, makes a final decision on the amount of loss
Once an award is signed by the umpire and at least one appraiser, it generally becomes binding under the policy’s appraisal clause.
A Typical
Appraisal Path
- Dispute on Amount of Loss
The policyholder, contractor, or attorney believes the carrier’s payment is too low for the actual damage. - Appraisers Are Selected
The policyholder (or their representative) names an appraiser, and the insurance company names an appraiser. - Inspection & Estimates
Each appraiser reviews the file, inspects the property if needed, and prepares their own estimate and position. - Appraisers Compare & Negotiate
The appraisers meet (often more than once) to compare scopes, pricing, and supporting documentation. - Umpire Involvement (If Needed)
If the appraisers cannot agree, a neutral umpire is selected to review the differences and help decide. - Appraisal Award Signed
An “Appraisal Award” is signed that sets the final amount of loss under the policy. The carrier then adjusts payment to match that award.
Common Questions About Appraisal
Is appraisal the same as suing my insurance company?
No. Appraisal is usually a contractual process inside the policy. It’s focused on the dollar amount of the loss, not on bad faith, penalties, or other legal claims a lawsuit might raise.
Do I still need a lawyer?
Many policyholders choose to work with an attorney, especially on larger or more complex claims. Hawkeye does not provide legal advice. Dan works as an appraiser or umpire within the appraisal clause; your lawyer can advise you on whether appraisal fits your overall strategy.
Who pays for the appraisers and umpire?
Most policies require each side to pay its own appraiser and to share the cost of the umpire. The exact language can vary by policy, so it’s important to review your specific terms with counsel.
Does appraisal decide coverage, or just the amount?
Appraisal typically decides only the amount of loss—the dollars attached to the damage. Coverage disputes (for example, whether a loss is excluded) are usually handled outside of appraisal, often by negotiation or litigation.
What You Can
Expect to See
To help policyholders, contractors, and counsel understand the process, Hawkeye can provide redacted examples of the types of documents used in appraisal.
Sample Appraisal Estimate
This is where you can see how line items, codes, and pricing are organized for appraisal through a sample report.
Sample Appraisal Award
A redacted Appraisal Award form provides clarity on what a final decision document looks like.