Stage 1 — The disagreement
Appraisal begins with a claim that has already been accepted, at least in part. The carrier has inspected and issued an estimate; you or your contractor believe that estimate is too low. Before going further, put your disagreement in writing: what you think is missing, what your contractor’s number is, and what documentation supports it. Many disputes end here when a supplement is accepted.
Stage 2 — The written demand
If the gap remains, either side may demand appraisal in writing. The demand should identify the claim, state that the parties disagree on the amount of loss, invoke the appraisal provision and name your appraiser (or commit to doing so within the policy’s time frame). Send it in a way you can prove — certified mail and email together is common. Check whether your policy requires a sworn proof of loss or any other step first.
Stage 3 — Both sides name appraisers
Each party selects a competent, independent appraiser. Many policies give each side 20 days from the demand to do so. Your appraiser reviews your file, inspects the property and builds a valuation. The carrier’s appraiser does the same. The two then exchange estimates and start working through the differences line by line.
Stage 4 — Choosing an umpire
The two appraisers select a neutral umpire, often early in the process so one is available if needed. If they cannot agree within the policy’s time limit (commonly 15 days), either party can ask a court of record in the county where the property sits to appoint one. In Georgia, that is usually the superior court.
Stage 5 — Negotiation between appraisers
Most of the work happens here. The appraisers walk the property together, compare measurements and pricing, and agree on as many line items as they can. A large share of appraisals end at this stage with both appraisers signing an agreed award — no umpire decision needed.
Stage 6 — Umpire review
Items the appraisers can’t resolve go to the umpire. Each appraiser submits a position with supporting evidence. The umpire may inspect, ask questions or hold an informal hearing, then decide each disputed item.
Stage 7 — The award
An award signed by any two of the three panel members sets the amount of loss. A well-drafted award separates replacement cost value, depreciation and actual cash value, and lists items by coverage. The carrier then issues payment according to the policy, less the deductible and prior payments, with any recoverable depreciation paid when repairs are completed.
What appraisal won’t do
- It won’t decide whether a loss is covered.
- It won’t award interest, bad-faith penalties or attorney’s fees.
- It won’t extend your policy’s suit-limitation deadline unless the policy or the parties say so.
- It won’t produce a number higher than your policy limits.
For those issues, talk to a Georgia attorney experienced in insurance disputes. Our role is valuation.