Ch 4 · Dispute Resolution
Module 4.2
The Appraisal Process
Both sides pick. Umpire breaks ties. The award is binding. How to win.
12 min read
What you'll learn
When appraisal makes sense. The mechanics. How to pick an appraiser. Umpire selection. Strategy for winning the binding award.
4.2.1 What appraisal is
Contractual dispute resolution mechanism baked into most FL property policies. Each side picks an appraiser. The two appraisers pick an umpire. Disputes → umpire decides. Decision is binding.
Decides: amount of loss only. Does not decide: coverage, denials, fraud, or whether carrier owes anything at all.
If your case is "carrier denied coverage" — appraisal is wrong tool. Use declaratory action, not appraisal.
4.2.2 When to choose appraisal
| Situation | Appraisal? | Why |
|---|---|---|
| Pure value dispute, scope agreed | ✅ Yes | Fast, binding, no court |
| Mixed scope + value dispute | ✅ Yes | Umpire decides both |
| Carrier lowball after reinspection | ✅ Yes | Forces resolution |
| Coverage denial | ❌ No | Wrong tool — use § 86.121 declaratory |
| Bad faith claim | ❌ No | Appraisal can't address bad faith |
| Carrier delay (not lowball) | ❌ No | Pre-suit + litigation |
4.2.3 The mechanics
Step 1: Demand appraisal in writing
Re: Demand for Appraisal — Claim # [#]
Per [Policy Section] of insurance policy
The undersigned demands appraisal of the disputed loss
pursuant to the appraisal provision of the policy.
I have selected [Name + Address] as my appraiser. They will
contact your appraiser within 10 days to select an umpire.
If umpire cannot be agreed upon within 15 days, either party
may petition the court per the policy.
[Signature + License #]
Step 2: Each side names an appraiser
Both must be qualified, disinterested (no financial interest in outcome), and competent.
Step 3: Appraisers select an umpire
10-15 days. If no agreement → court petitions a neutral umpire (your county circuit court).
Step 4: Discovery + inspection
Both appraisers + umpire walk the property. Reports exchanged. Documentation reviewed.
Step 5: Award
Two of three (any two of: appraiser A, appraiser B, umpire) sign an award for the amount. Award is final + binding on both parties (with narrow exceptions for fraud).
Step 6: Payment
Carrier pays award within 30-60 days typically.
4.2.4 Picking an appraiser — the key decision
Your appraiser's experience + skill = your outcome. Don't hire just anyone with "appraiser" in their name.
| Quality | Why critical |
|---|---|
| Strong contractor / Xactimate background | Can defend pricing + scope |
| FL property claim experience | Knows local pricing + practices |
| Litigation history | Won't fold under pressure |
| No carrier conflicts | Disinterested |
| Network of experts | Can call engineer / plumber as needed |
| Understands the umpire pool | Knows who's biased toward what |
Rates: $150-$500/hour. Estimate $5K-$30K total appraiser fees, depending on claim size + complexity.
Avoid: Adjusters with deep carrier ties, overly cheap appraisers, anyone w/o documented FL experience.
4.2.5 Umpire selection — the most important moment
The umpire is the deciding vote. Carrier appraisers are predictable. Yours should be too. The umpire is the variable.
Strategy
Build your list before you need it. Maintain a list of 5-10 acceptable umpires per county.
What makes a good umpire
- Active in property claims (not retired)
- No carrier or PA financial ties
- Reputation for fairness (not the "carrier-favored umpire")
- Local FL knowledge
- Reasonable rates ($300-$600/hour)
Trade-off negotiation
Each side typically proposes 3-5 names. Each side strikes some. Settle on one that's acceptable to both. Don't accept first offer — you have leverage.
Court-appointed umpire risk
If you can't agree, court picks. Court picks may be neutral but unknown to you. Better to negotiate than escalate.
4.2.6 The appraisal hearing
Pre-hearing prep
- Detailed scope w/ all line items
- Photos organized by area + category
- Pricing source citations (FLMI, contractor quotes, manufacturer specs)
- Expert reports referenced
- Code requirements documented
- Previous estimates for context
During inspection
- Walk every disputed area
- Show your scope with photos
- Address each line item
- Ask their appraiser pointed questions
- Take notes on their positions
After inspection
- Submit written argument w/ all evidence
- Address each disputed item separately
- Reference statutes + standards (IICRC, code, matching)
- Provide your number with rationale
4.2.7 Strategy — how to win
Anchor your number aggressively
Demand = full RCV scope + statutory remedies. Don't pre-negotiate. Let umpire find midpoint that may favor you.
Drive the umpire to YOUR scope
Before umpire site visit, ensure your scope is clear, documented, complete. Let carrier defend their omissions.
Documentation > argument
Photos win disputes. Your contractor's $135/sf vs carrier's $87/sf — show the work that justifies the higher number.
Leverage independent experts
Engineer, IICRC inspector, plumber. Their reports go to umpire. Independent voices anchor.
Identify carrier blind spots
Common: hidden damage, code upgrades, matching, mitigation. Drill into these — often easy umpire wins.
Don't over-disclose to other side
You don't have to share working papers. Share only what's required. Save strongest evidence for umpire decision phase.
4.2.8 Common appraisal traps
Carrier picks "favored" appraiser
Their adjuster who's appraised before. Counter: insist on documented disinterested status.
Carrier delays umpire selection
Wastes time. Counter: court petition after 15 days.
Carrier challenges your appraiser
Tries to disqualify. Counter: document credentials + independence in writing.
"Compromise" award
Umpire splits the difference. Counter: argue the items individually, not totals. Each line item should win or lose on merits.
Award challenges in court
Carrier sues to overturn. Rare but happens. Counter: ensure award is fully signed + procedurally clean.
4.2.9 Costs
| Item | Cost |
|---|---|
| Your appraiser | $5K-$30K |
| Umpire (split 50/50) | $2K-$10K each |
| Independent expert | $1K-$5K |
| Total to policyholder | $8K-$45K |
Worth it for claims $50K+. Below that, mediation more efficient.
4.2.10 After award
If you win or partial win
Award is binding. Carrier pays. Done.
If award is too low
Generally final. Narrow grounds for vacating: fraud, partiality, misconduct, exceeding scope.
Recoverable depreciation
If award awards full RCV, depreciation rules continue to apply. Reach out for second check after repairs.
Can you challenge?
Yes — within statutory window (typically 30-90 days). Grounds limited. Consult attorney.
4.2.11 Action steps
- Confirm appraisal applies — value dispute, not coverage denial.
- Demand in writing — name your appraiser.
- Hire qualified appraiser w/ FL experience + litigation backbone.
- Negotiate umpire — propose your list, strike theirs.
- Prepare thoroughly for hearing.
- Drive your scope — photos + experts + documentation.
- Don't fold to "compromise" — argue each item on merits.
- Collect on award — confirm signed + paid.
Next module: 4.3 Umpire Selection — Building Your List.
Educational. Not legal advice. Appraisal procedure governed by your specific policy + Florida law.