Appraisal · Minnesota policyholders
If your insurance company has made you a settlement offer that feels too low, you may have more options than you realize. Buried in most homeowner insurance policies is a provision called the appraisal clause — and it can fundamentally change the outcome of a disputed claim.
What is the appraisal clause?
The appraisal clause is a provision in most property insurance policies that gives either the policyholder or the insurance company the right to demand appraisal when they disagree on the amount of a loss.
It’s important to understand what appraisal is — and isn’t. Appraisal resolves disagreements about how much a covered loss is worth. It does not resolve disputes about whether something is covered in the first place. If your insurer is denying coverage entirely, appraisal isn’t the right tool. If they’re saying your roof replacement is worth $12,000 and you believe it’s worth $22,000, appraisal is exactly the right tool.
How does the appraisal process work?
When appraisal is invoked, each side selects a competent, independent appraiser. Before any inspection, the two appraisers agree on a neutral umpire who will resolve any disagreement between them. Both appraisers then inspect the property together and work toward an agreed amount of loss. If they can’t agree, the umpire steps in. The decision of any two of the three parties is binding on both sides.
When should you use it?
Consider invoking appraisal when your insurance company has offered a settlement you believe significantly undervalues your loss, when negotiations with the insurer have stalled, or when you’ve exhausted other avenues and still can’t get to a fair number.
The key is having a strong, experienced appraiser on your side — someone who knows how to document and present a claim, understands policy language, and can hold their position under pressure. That’s exactly what we do.
How to invoke appraisal
Read your policy’s appraisal clause carefully — it will specify how to make a written demand and any timeframe requirements. Send a written demand for appraisal to your insurer via certified mail. Then select your appraiser. We provide appraisal services across Minnesota, Wisconsin, Illinois, Iowa, North Dakota, South Dakota, and Colorado.
In a dispute with your insurance company?
We can serve as your appraiser or help you understand your options. Free consultation.
Ryan Wagner is the founder of Lighthouse Claims Consulting, a licensed public adjusting firm and licensed insurance appraiser serving MN, WI, IL, IA, ND, SD, and CO.