The short answer
Appraisal is a process in most property insurance policies for resolving disagreements over the amount of a loss without going to court. Each side chooses an appraiser, the two appraisers choose an umpire, and an agreement by any two of them sets the amount.
Why it matters
Appraisal is usually faster and cheaper than a lawsuit, and it can close a large gap between estimates. But the result is binding on the amount, and it does not settle whether the loss is covered in the first place.
Where it fits in your case
After the insurer accepts at least part of the claim but disputes how much it is worth. For example, the insurer’s adjuster estimates $30,000 and your contractor estimates $100,000.
What to expect
What it decides. The dollar value of the loss. Whether the policy covers the loss at all is generally a question for the courts. Disputes about what caused the damage can blur that line.
Starting it. Either side can usually demand appraisal in writing. The policy may set short deadlines to name an appraiser.
Who pays. Policies usually require each side to pay its own appraiser and split the umpire’s fees.
Impartiality. Many policies require appraisers to be impartial, including the one you choose.
The award. It is binding on the amount and can be challenged only on narrow grounds, such as fraud or the appraisers exceeding their authority.
What to do now
Get a detailed, itemized estimate of your own before demanding appraisal.
Make sure the disagreement is really about price, not coverage.
Choose an appraiser with experience in your type of property and loss.
Track the policy’s deadline to sue, which may keep running.
What we need from you
The policy, both sides’ estimates, photos, invoices, and all claim correspondence.
Common misconceptions
“Appraisal will overturn the denial.” It sets the amount, not whether there is coverage.
“My appraiser is my advocate.” Many policies require impartial appraisers.