Understanding the Property Insurance Appraisal Process for Storm Damage and Hail Claims
- BranchStone
- Apr 28
- 4 min read
Written by BranchStone
Severe storms, hail, and wind events are common across Texas — and property owners often rely on insurance to cover necessary roof repairs. However, sometimes disagreements arise between the homeowner and the insurance company about how much the repairs should cost, what method of repairs should be, and other scope issues.
When this happens, the insurance policy’s Appraisal Clause provides a powerful — but often misunderstood — solution. Therefore, when a property insurance claim is disputed in Texas, policyholders have the right to request an appraisal if it's included in their policy terms. According to the Texas Department of Insurance (TDI), the appraisal process is a formal method that can help resolve disagreements over the value of a loss without the need for a lawsuit. In an appraisal, each party—both the policyholder and the insurer—selects an appraiser, and together, they agree on an umpire. If the appraisers cannot agree on the value, the umpire steps in to make a binding decision. This process can result in the insurance company issuing payment based on the appraised value of the loss, helping policyholders settle claims fairly and efficiently (TDI, Disagree with an Insurance Claim Settlement?).
The most common standard appraisal clause says: “If you or we fail to agree on the amount of loss, either may demand that the amount of loss be set by Appraisal. If either makes a written demand for Appraisal, each shall select a competent, independent appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial Umpire. If the two appraisers are unable to agree upon an Umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an Umpire. The Appraisers shall then set the amount of the loss. If the Appraisers fail to agree within a reasonable time, they shall submit their differences to the Umpire. Written agreement signed by any two of these three shall set the amount of the loss.”
At BranchStone Roofing, we believe in helping homeowners understand their rights without overstepping legal boundaries. Here’s a simple, factual guide to the property insurance appraisal process.
⚖️ What Is the Appraisal Process?
Most property insurance policies (including those issued by State Farm, Travelers, USAA, and others) include an Appraisal Clause. This clause provides a formal method to resolve disputes about the amount of loss, not whether damage is covered.
Important: Appraisal is only appropriate when both parties agree that there is covered damage but disagree on the cost to repair it.
🔹 Step-by-Step: How the Appraisal Process Works
One Party Demands Appraisal in Most Instances
Either the policyholder (home/business owner) or the insurer (carrier) can invoke appraisal in writing according to the policy language.
Each Side Selects an Appraiser
The homeowner hires an independent Appraiser.
The insurance company appoints their own Appraiser.
The Two Appraisers Select an Umpire
If the appraisers cannot agree on the amount of loss, they select a neutral Umpire.
If the appraisers cannot agree on an umpire, a judge may appoint one according to Texas rules. Some policies have an entity such as American Arbitration or JAMS.
The Appraisal Panel Decides the Loss
The two appraisers attempt to decide the amount of loss and if they agree, that sets the amount. However, if they disagree the Umpire decides only on the differences of the two and that amount sets the award.
If two out of the three (either both Appraisers or one Appraiser and the Umpire) agree on an amount, that value becomes binding on both parties.
The insurer must then issue payment according to the final Appraisal Award.
💵 Who Pays for the Appraisal Process?
Each party pays for their own Appraiser.
Both sides split the cost of the Umpire (if needed).
🔹 For example:
Homeowner hires an appraiser (typically $500–$2,000 depending on complexity).
Insurance company hires theirs (their cost).
Umpire costs are shared equally if used (ranges from $1,000–$3,000+).
Note: Some policies specify that "reasonable expenses" of the Appraisal process must be borne separately by each party.
🚫 What Happens if the Appraisal Process Fails?
Sometimes the appraisal process breaks down:
Parties dispute the Appraisal Award amount.
Allegations arise about improper Appraiser or Umpire conduct.
If the Appraisal process completely fails, the homeowner may then:
Seek legal counsel.
File a lawsuit against the insurer for breach of contract, bad faith, or Texas Insurance Code violations.
Real-world tip: Appraisal usually resolves claims faster and less expensively than lawsuits — but it's not a guarantee.
🛡️ What Roofing Contractors Legally Cannot Do (UPPA Compliance)
Texas law prohibits contractors (including roofing companies like BranchStone) from:
Negotiating with insurance companies on behalf of policyholders.
Acting as Public Insurance Adjusters unless properly licensed.
At BranchStone, we respect the law:
We can assist homeowners by providing accurate estimates and documentation of damage.
We can recommend that homeowners consider invoking Appraisal — but we do not file or handle the process for them.
We always encourage clients to consult a licensed Public Adjuster or attorney for disputes involving policy interpretation or settlement negotiation.
✅ Staying compliant protects you, your client, and our company’s integrity.
🏢 Final Word from BranchStone
The Appraisal process is a powerful tool for Texas homeowners to achieve fair insurance settlements after hail or storm damage. By understanding how it works — and respecting legal boundaries —we help guide clients the right way without practicing unlicensed adjusting.
At BranchStone, we focus on what we do best: Inspecting, documenting, building, and restoring trust.
