Disputes with insurance companies are more common than you might think—especially when it comes to property damage claims in Texas. Whether you’re dealing with storm damage, water damage, or fire loss, it’s not unusual to find yourself at odds with your insurer over how much a claim is worth. Fortunately, Texas insurance policies often include an appraisal clause, which allows policyholders to resolve disagreements without going to court.
But how do you know if you’re eligible for an insurance appraisal in Texas? This article will walk you through what an insurance appraisal is, who qualifies, and how to get started.
What Is an Insurance Appraisal?
An insurance appraisal is a dispute resolution process written into many property insurance policies. When you and your insurance company disagree on the amount of loss—not coverage—the appraisal clause may be invoked. It allows both parties to select independent appraisers who work together to reach a fair value for the claim. If they can’t agree, an umpire is brought in to make the final decision.
Key Point:
Insurance appraisal is not the same as filing a lawsuit—it’s a form of alternative dispute resolution.
Who Is Eligible for an Insurance Appraisal in Texas?
To determine if you’re eligible for an appraisal in Texas, you’ll need to consider the following factors:
1. Your Policy Has an Appraisal Clause
Most standard property insurance policies in Texas include an appraisal clause. However, not all policies are the same, and some insurance companies may remove or alter this clause.
What to do:
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Check your policy under sections labeled “Conditions” or “Dispute Resolution” to see if appraisal is an option.
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Look for phrasing like: “If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss.”
If you’re unsure how to interpret your policy, sites like TX Insurance Appraiser can help clarify whether your claim qualifies.
2. There’s a Dispute Over the Amount, Not Coverage
Appraisal is only available when you and your insurer agree that a loss is covered, but disagree on how much it should pay. If your insurance company has denied your claim based on coverage, then appraisal is not the appropriate step.
Examples of valid disputes for appraisal:
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Disagreement over how much hail damage your roof sustained
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Arguments over the cost of repairing or replacing damaged property
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Disputes on depreciation or replacement costs
If the dispute is about whether the damage is covered at all, that may require legal action or filing a complaint with the Texas Department of Insurance.
3. You’re Within the Time Limit to Request an Appraisal
Most insurance policies require that appraisal be requested within a certain time after the claim is filed or denied. If you wait too long, your right to appraisal may expire.
Check your policy for specific time limits. If you’re unsure, it’s best to act quickly and consult with a professional.
How to Invoke the Appraisal Process
If you’ve determined that you’re eligible, here’s how to proceed:
Step 1: Make a Formal Request
You’ll need to send a written request for appraisal to your insurance company. This can usually be done via certified mail or email, depending on policy guidelines.
Include:
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Your name and policy number
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Date of loss
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A clear statement requesting appraisal under the policy
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The disputed amount of loss
Pro tip: Use a template or consult experts like TX Insurance Appraiser to ensure the letter is correctly formatted.
Step 2: Appoint Your Appraiser
Each party chooses their own appraiser. Your appraiser should be experienced, impartial, and familiar with the claims process. Their job is to advocate for your position while working toward a fair resolution.
Step 3: The Umpire (If Needed)
If your appraiser and the insurer’s appraiser can’t agree, they’ll choose an umpire—a neutral third party who makes the final call. The decision of any two of the three (your appraiser, the insurer’s appraiser, or the umpire) becomes binding.
What Are the Benefits of Appraisal?
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Faster Resolution – Appraisal can move quicker than lawsuits or lengthy negotiations.
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Cost-Effective – Though you may have to pay your appraiser, it’s often cheaper than court.
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Binding Decision – Once a value is agreed upon, both parties are typically bound by the result.
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Avoids Litigation – Keeps disputes out of the courtroom and often resolves issues more amicably.
When Should You Avoid Appraisal?
While appraisal is powerful, it’s not right for every situation. You should avoid or delay appraisal if:
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The claim has been denied due to lack of coverage
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You haven’t received a full denial or payment yet
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You suspect the insurance company is acting in bad faith
If you believe your insurer is deliberately delaying, misrepresenting coverage, or lowballing without justification, you may want to file a complaint with the Texas Department of Insurance or speak to an attorney.
Helpful Resources
Here are some helpful links for Texans dealing with insurance claim disputes:
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Texas Department of Insurance – File a Complaint or Learn More
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NAIC Consumer Insurance Search – Research complaints and reviews on insurance companies
Final Thoughts
Disputing an insurance claim can be a stressful experience—but knowing your rights under Texas law can give you leverage. If your property damage claim has been underpaid and your policy includes an appraisal clause, you may be eligible to resolve the issue without litigation.
Start by reviewing your policy, gathering your documentation, and exploring trusted resources like TX Insurance Appraiser. Don’t wait too long—time limits and deadlines can make all the difference.
