The appraisal clause in a typical Georgia homeowners policy is about 150 words long. It rarely gets read until a claim goes sideways — and then every word matters. Below is a composite of common policy language, broken into pieces, with what each piece means in practice. Your policy’s wording may differ, so compare it line by line.
“If you and we fail to agree on the amount of loss…”
This is the trigger. Appraisal is for disagreements about amount — how much a covered loss costs to repair. It isn’t meant for disagreements about whether a loss is covered at all. If the carrier has denied your claim entirely, appraisal usually isn’t the tool.
In practice, the line between amount and coverage blurs. Is the dispute about how many roof slopes were damaged by hail (amount) or whether hail caused the damage at all (causation)? Courts across the country have split on this. Expect the carrier to argue that anything it doesn’t like is a coverage question.
“…either may demand an appraisal of the loss.”
Either party can start the process. The demand should be in writing. It’s good practice to identify the policy and claim numbers, state that you disagree on the amount of loss, and reference the appraisal provision directly.
“In this event, each party will choose a competent and disinterested appraiser within 20 days…”
Two key words: competent and disinterested. Competent means the appraiser has the knowledge to value this type of loss. Disinterested means no stake in the outcome — which is why many appraisers avoid contingency arrangements and why your roofing contractor may not be the right choice. Some newer forms say “independent” instead; the idea is similar.
The 20-day window is common but not universal. Missing it can give the other side an argument, so calendar it on the day you send or receive a demand.
“The two appraisers will choose an umpire…”
The umpire is neutral and only decides items the appraisers can’t agree on. If the appraisers can’t agree on an umpire within the policy’s window — frequently 15 days — either party can ask a court of record in the county where the property is located to appoint one.
“The appraisers will separately set the amount of loss…”
Each appraiser builds a valuation independently, then the two compare. The best appraisals involve a joint inspection where both appraisers walk the property and resolve as much as possible in person.
“A decision agreed to by any two will be binding.”
This is the sentence that makes appraisal powerful — and risky. Once two of the three sign, the amount is set. If your appraiser’s valuation isn’t well documented, the umpire may sign with the carrier’s appraiser instead.
“Each party will pay its own appraiser and bear the other expenses of the appraisal and umpire equally.”
Budget for your appraiser’s fee and half the umpire’s fee. On a small dispute, those costs can consume most of the increase, which is why we built the appraisal value estimator.
What’s often missing from the clause
The clause usually says nothing about deadlines for completing appraisal, what happens to your suit-limitation date while appraisal is pending, or how depreciation is handled in the award. Those gaps are where disputes happen, and where an experienced Georgia Insurance Appraiser earns their fee.