The Top Mistakes to Avoid During the Insurance Appraisal Process
When a property damage claim turns into a dispute over repair costs, the appraisal process can be an effective way to settle things fairly. However, navigating appraisal without understanding the common pitfalls can cost policyholders valuable time, money, and leverage.
In this post, we’ll highlight the most common mistakes made during the appraisal process—and how you can avoid them to ensure the best possible outcome.
1. Choosing the Wrong Appraiser
One of the biggest mistakes policyholders make is selecting an appraiser who lacks experience or isn’t truly independent.
✅ What to do instead: Choose an appraiser with a strong background in insurance claims, construction estimating, and loss valuation. They should also be impartial—someone who will advocate for fair value, not just push for the highest number.
🚫 What to avoid: Hiring a contractor who doesn’t understand insurance appraisal or picking someone solely based on price. A cheaper appraiser isn’t always the best choice if they lack experience.
2. Failing to Gather Strong Documentation
Appraisal is all about proving the value of your loss, and the more evidence you have, the better.
✅ What to do instead: Before appraisal begins, gather:
Detailed contractor estimates (including line-item breakdowns)
Photos of the damage (before repairs, during repairs, and after)
Receipts for repairs and materials
Any prior estimates or reports from adjusters, engineers, or specialists
🚫 What to avoid: Going into appraisal with vague estimates or missing documentation. Without solid proof, it’s harder to justify your position.
3. Invoking Appraisal for the Wrong Reasons
Appraisal only works if there’s a dispute over the value of the loss—not whether a claim is covered at all.
✅ What to do instead: Make sure your disagreement is about damage valuation (how much repairs should cost), not coverage disputes (whether something is covered under your policy).
🚫 What to avoid: Using appraisal as a way to fight a denied claim. If coverage is the issue, legal action or mediation may be required instead.
4. Not Understanding the Costs Involved
While appraisal is often cheaper than litigation, it still comes with expenses that need to be considered.
✅ What to do instead: Understand that both sides must pay for:
Their own appraiser’s fees
Half of the umpire’s fee (if an umpire is needed)
🚫 What to avoid: Invoking appraisal without weighing the costs. If the dispute is only over a few thousand dollars, it may not be worth the expense.
5. Overlooking the Umpire’s Role
Many people don’t realize that if the two appraisers can’t agree, the umpire makes the final call—and their decision is binding.
✅ What to do instead: Work with an appraiser who knows how to negotiate effectively. If the umpire gets involved, ensure they are truly neutral and knowledgeable about insurance claim valuations.
🚫 What to avoid: Assuming the umpire will automatically side with one party. They are there to resolve disputes fairly, not advocate for either side.
6. Rushing the Process
Appraisal isn’t instant—proper evaluation, negotiation, and final decision-making take time.
✅ What to do instead: Be patient and allow appraisers to thoroughly assess the damage, compare estimates, and negotiate a fair value.
🚫 What to avoid: Expecting an immediate resolution. Appraisal typically takes weeks to months, depending on complexity.
Final Thoughts
The insurance appraisal process can be a powerful tool when handled correctly—but making mistakes can weaken your case and lead to unfavorable results.
By selecting the right appraiser, preparing strong documentation, and understanding what appraisal can and can’t do, you’ll improve your chances of reaching a fair settlement.
Considering appraisal for your claim? Contact us to discuss your options and get expert guidance!