Insurance appraisal in Florida is a creature of contract. Most homeowners and commercial property policies contain an appraisal clause that lets either side demand a panel of appraisers to set the amount of loss. Florida statutes do not create the right, but they regulate parts of it — who may serve as umpire, how appraisal interacts with mediation, pre-suit notice and bad faith. Read your own policy's clause first; wording varies.
How a typical appraisal clause works
Standard homeowners forms describe appraisal in a few sentences. Although wording differs between insurers, the usual sequence is:
- A written demand. Either party, if they disagree on the amount of loss, demands appraisal in writing.
- Each side picks an appraiser. Each party selects a competent and impartial appraiser, usually within a set number of days (often 20) after the demand.
- The appraisers choose an umpire. If they cannot agree within the policy's time limit, either side may ask a court to appoint one.
- Separate valuations. Each appraiser sets the amount of loss. If they agree, that amount is binding.
- Umpire decides differences. If they disagree, they submit their differences to the umpire. A written award agreed to by any two of the three sets the amount of loss.
- Costs. Under many forms, each party pays its own appraiser and the two sides split the umpire's fee and other appraisal expenses equally.
Umpire conflicts of interest
In appraisal under a residential property policy, either side may challenge a proposed umpire on four grounds.
The umpire is related to a party or its representative within the third degree; previously represented a party in the same claim; represented someone with materially adverse interests in the same or a substantially related matter involving the claim or the same or an adjacent property; or was an employer or employee of a party within the preceding five years.
What appraisal can and cannot decide
Appraisal is about the amount of loss. Coverage questions — whether the policy covers the loss at all, whether an exclusion applies, whether a condition was breached — generally belong to the courts. The Florida Supreme Court addressed the line in Johnson v. Nationwide Mutual Insurance Co., 828 So. 2d 1021 (Fla. 2002): where the insurer admits that there is a covered loss but disputes the amount, causation questions about how much of the damage the covered peril caused can be decided in appraisal; where the insurer denies that any covered loss occurred, the coverage question is for a court.
In practice, that means appraisal fits a partial denial or underpayment far better than a total denial. If the insurer says the loss is not covered at all, appraisal usually cannot fix that; a lawsuit (after pre-suit notice) is the normal route. Even after an award, an insurer may still raise coverage defenses that appraisal did not resolve.
How appraisal interacts with other Florida rules
| Rule | Effect on appraisal |
|---|---|
| s. 627.70152(4)(b) | After a pre-suit notice about acts or omissions other than a coverage denial, the insurer may respond by requiring appraisal or other ADR. If it is not concluded within 90 days after the notice period, you may sue without further notice; limitations periods are tolled while it is pending. |
| s. 627.7015(7) | If the insurer did not give the required notice of the right to DFS mediation, or the insurer requested mediation and either party rejected the outcome, the policyholder is not required to submit to contractual appraisal before suing. |
| s. 624.155(3)(f) | In a residential property claim, a Civil Remedy Notice may not be filed within 60 days after either party invokes appraisal. The limitations period is tolled for 60 days after appraisal is invoked. |
| s. 627.70131(8) | The insurer's claim-handling deadlines are tolled during mediation and other alternative dispute resolution. |
When appraisal makes sense
Points in favor
- Usually faster and less formal than litigation.
- Decided by people who estimate construction and repair costs.
- Well suited to disputes over scope, pricing, matching and repair methods.
- The award is binding on the amount, which ends the valuation fight.
Points of caution
- You pay your appraiser and typically half of the umpire, whatever the result.
- Generally cannot resolve a total coverage denial.
- Limited grounds to challenge an award you dislike.
- The award may leave coverage defenses open, so a dispute can continue.
Because the result binds you, the choice of your appraiser matters. Look for someone who is genuinely independent, who documents the scope room by room, and whose fee arrangement is clear in writing before work starts.
Waiver and timing
A party can lose the right to demand appraisal by acting inconsistently with it, for example by litigating the claim at length before raising appraisal. Courts look at the specific facts. Read the timing language in your policy's appraisal clause; some policies set conditions that must be met before appraisal can be demanded, such as completing the post-loss duties.
Appraisal does not extend the deadline to give notice of a claim under s. 627.70132, and you should keep the five-year suit limit in s. 95.11(2)(e) in view. The claim deadlines guide lists both.
After the award
Once there is a signed award, the insurer generally pays the award less the deductible and any prior payments, subject to any coverage defenses it preserved. If the insurer does not pay, or disputes coverage for items in the award, the dispute may move to court. Prompt payment after an award is also relevant if a bad faith claim is later evaluated.
Frequently asked questions
Is insurance appraisal in Florida binding?
A written appraisal award agreed to by two of the three panel members is generally binding on the amount of loss. It usually does not decide whether the loss is covered.
Can my insurer force me into appraisal?
If your policy has an appraisal clause, either party can usually demand it when there is a disagreement on the amount of loss. After a pre-suit notice about an underpayment, s. 627.70152(4)(b) also lets the insurer require appraisal or other ADR. Exceptions exist, including under s. 627.7015(7) for mediation-notice failures.
Who pays for appraisal?
Under many policy forms, each side pays its own appraiser and the parties split the umpire's fee and other appraisal costs. Check your policy's clause.
Can appraisal be used if my claim was completely denied?
Generally no. When the insurer denies that any covered loss occurred, the coverage question is for a court. Appraisal is designed for disputes about the amount of a loss the insurer accepts is covered.
Can I challenge the umpire?
For residential property appraisals, s. 627.70151 allows a challenge to an umpire on specific conflict-of-interest grounds such as close family relationships, prior representation, or recent employment by a party.