How the appraisal clause works in a Florida property claim

A way to settle the amount

Many property policies include an appraisal clause for disputes about how much a covered loss is worth. Instead of going to court, each side names an appraiser and a neutral umpire resolves the differences. Florida law itself notes that most homeowner and commercial residential policies require policyholders to participate in appraisal before litigation.

How it typically works

The exact steps are in your policy, but a typical appraisal clause works like this:

• Either side demands appraisal in writing
• You and the insurer each choose a competent, impartial appraiser within a set number of days
• The two appraisers choose an umpire; if they cannot agree, a court can appoint one
• The appraisers set the amount of the loss; where they disagree, they submit their differences to the umpire
• An award agreed by any two of the three sets the amount

What appraisal does not decide

Appraisal is about the amount of the loss. Whether a loss is covered at all, or whether a policy exclusion applies, is generally outside what appraisers decide. If the insurer denied the claim entirely, appraisal may not be the right path.

Costs to plan for

Policies usually have each side pay its own appraiser and split the umpire’s fee and other appraisal costs equally. Ask any appraiser how they charge before hiring them. Appraisal is a separate service from RicardoPA’s claim agreement; if it makes sense for your claim, we will tell you and explain the options.

Appraisal vs. DFS mediation

Section 627.7015 offers residential policyholders a different, informal option: mediation through the Florida Department of Financial Services, available before appraisal or litigation, with the cost paid by the insurer. Mediation is a negotiation with a neutral mediator; nothing is binding unless both sides agree. Appraisal produces an award on the amount. Depending on the dispute, one may come before the other.