How Insurance Appraisal Works in Florida (and When to Use It)
When the carrier agrees a loss is covered but lowballs the amount, appraisal can settle the dollar figure faster and cheaper than a lawsuit. Here is how it works.
Last reviewed July 2026. General guidance, not legal advice.
Appraisal is one of the most useful and least understood tools in a property policy. It exists to settle a disagreement about how much a covered loss is worth, without going to court.
What appraisal decides (and what it does not)
The appraisal clause resolves disputes over the amount of loss, not whether the loss is covered. If the carrier denies coverage entirely, appraisal does not apply; that is a coverage dispute for mediation or litigation. If the carrier agrees it owes something but the number is too low, appraisal is the right tool.
The process
- Each side selects its own qualified, independent appraiser.
- The two appraisers select a neutral umpire.
- They inspect and value the loss; any two of the three agreeing sets the binding amount.
Cost and timing
Typically each side pays its own appraiser and splits the umpire’s fee, though policy terms vary. Appraisal is generally faster and cheaper than litigation, which is why it is often the right first escalation when coverage is not in dispute. Florida also offers a state mediation program under Fla. Stat. 627.7015 for many residential claims.
How Insurance Appraisal Works in Florida (and When to Use It) FAQs
When coverage is not in dispute but the payment amount is. Appraisal binds the dollar figure faster and cheaper than a lawsuit. It cannot decide whether a loss is covered.
Usually each side pays its own appraiser and they split the umpire’s cost, but check your policy’s appraisal provision for the exact terms.
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