What the letter means
Your policy contains an appraisal clause. Either you or your insurance company can invoke it when there is a disagreement about the AMOUNT of your loss. The letter means the appraisal process has formally started. Each side now names its own appraiser, and the two appraisers choose an umpire. When two of the three agree on a number, that number generally binds both sides as the amount of the loss.
The deadline
Standard Texas policy language gives the party receiving a demand a limited window, commonly 20 days, to name their own appraiser. A new Texas law (SB 458) and its pending TDI rules are expected to standardize this process for residential property and personal auto policies, including a 20-day naming deadline. As of this writing the TDI rule is proposed, not final, so your specific deadline comes from YOUR policy language and the letter itself. Read both.
What to do, in order
- Find the deadline in the letter and in your policy's appraisal clause. Write it down.
- Review your policy's appraisal clause alongside the letter. If you already have an attorney or public adjuster, loop them in now.
- Choose your appraiser. This person is named by you but must remain impartial and unbiased. Look for construction knowledge, real estimating experience on Texas losses, and insurance industry credentials.
- Name your appraiser in writing before the deadline, the way the letter instructs.
- Gather your documentation: photos, contractor estimates, receipts, the carrier's estimate, and all correspondence.
Common questions
If your policy's clause has been properly invoked, refusing to name an appraiser generally means the process can move forward without your input on the amount. Talk to your appraiser or an attorney about your specific situation.
No. Appraisal resolves the amount of the loss. Coverage questions stay separate.
Typically each side pays its own appraiser and splits the umpire's fee. Ask any appraiser for their fee structure up front. We put ours in writing before you commit.
The award generally binds both sides on the amount of the loss. It does not decide coverage disputes.
If you already have one, they will usually coordinate the appraisal and may have appraisers they work with. If you have one, call them before doing anything else.
Tell us about your claim
Prefer to write it out? Send the basics and we will call you back. Nothing here obligates you to anything.