Appraisal usually enters the picture after the insurer has accepted at least part of a claim. The adjuster's estimate says the kitchen needs $9,000 in repairs; your contractor says $41,000. Or the insurer agrees the roof was damaged by wind but will pay only to repair two slopes. Either side may then invoke the policy's appraisal clause, or the insurer may require appraisal in response to a presuit notice. Appraisal can resolve an amount dispute faster than a lawsuit. It can also go badly for an owner who walks in unprepared.
Appraisal is a process set by the policy, with some rules added by Florida statute. The steps below explain how to prepare.
1. Read the appraisal clause in your policy
Start with the exact words. Most Florida homeowners and condo policies provide that if the parties disagree on the amount of loss, either may demand appraisal in writing; each side selects its own appraiser within a set number of days; the two appraisers select an umpire; and a written agreement by any two of the three sets the amount of loss. Many clauses also say that each side pays its own appraiser and that the parties split the umpire's fee and other appraisal costs. Note every deadline in the clause and follow it.
2. Confirm what is actually in dispute
Appraisal clauses are generally written to decide the amount of loss. Some disputes are about coverage instead: whether an exclusion applies, whether notice was timely, or whether the policy covers a category of damage at all. Before agreeing to appraisal, identify which parts of the disagreement are about price and which are about coverage, and get advice on how your policy treats the difference. Appraisal is a poor fit for a pure coverage fight.
3. Choose your appraiser carefully
Your appraiser should be competent and independent, with real experience estimating the kind of damage at issue, whether roofs, water losses, or fire restoration. Ask about the appraiser's experience, how they are paid, and whether they have any relationship with the insurer, its adjusters, or the property. Check whether your policy requires the appraisers to be disinterested or impartial and what it says about how they may be paid. Get the engagement terms in writing.
4. Watch the umpire selection
The umpire often decides the outcome, because the two appraisers rarely agree with each other. Florida lets either party challenge a proposed umpire's impartiality and disqualify the umpire only on specified grounds: a familial relationship within the third degree with a party or a party's representative; prior representation of a party in a professional capacity in the same claim or matter involving the same property; prior representation of another person, with interests materially adverse to a party, on the same or a substantially related matter; or work "as an employer or employee of a party within the preceding 5 years" (§ 627.70151, Fla. Stat.). Raise any concern promptly and in writing.
“as an employer or employee of a party within the preceding 5 years”
§ 627.70151
5. Build the evidence package before the appraisal panel meets
Give your appraiser everything that supports the amount: dated photos and video from right after the loss, the insurer's estimate and photographs, your contractor's or independent adjuster's line-item estimate, engineering reports, leak detection or mitigation records, material availability letters for matching, code requirements, and receipts for work already done. Ask the insurer for its detailed estimate if you do not have it; Florida requires the insurer to send a copy within 7 days after its adjuster generates it (§ 627.70131(3)(e)). An umpire reviewing two estimates will usually credit the one with better support.
6. Read the award before you accept payment
The appraisal award should state the amount of loss, and often separates replacement cost from actual cash value and lists categories such as dwelling, other structures, and contents. Check it against your policy limits, deductible, prior payments, and any holdback for depreciation. If the policy pays replacement cost, Florida generally requires the insurer to pay at least the actual cash value first and the remaining amounts as the work is performed (§ 627.7011(3)(a)). Keep a record of what is still owed after the award and why.
The Florida rules that matter in appraisal
Appraisal after presuit notice. Before suing, a policyholder must give the Department of Financial Services written notice of intent to initiate litigation at least 10 business days before filing (§ 627.70152(3)). For a dispute that is not a coverage denial, the insurer's written response may include "requiring the claimant to participate in appraisal or another method of alternative dispute resolution." If appraisal or other dispute resolution is not concluded within the 90-day period the statute sets, "the claimant or claimant's attorney may immediately file suit without providing the insurer additional notice" (§ 627.70152(4)(b)).
Limitations period during appraisal. The time limit to sue for breach of a property insurance contract is 5 years from the date of loss (§ 95.11(2)(e)). The presuit statute provides that "The time limits provided in s. 95.11 are tolled as long as appraisal or other alternative dispute resolution is ongoing," if those limits would otherwise expire during the process (§ 627.70152(4)(b)).
Mediation and appraisal. Florida's free state mediation program is available for residential property disputes before appraisal or litigation begins (§ 627.7015). Under that statute, if the insurer failed to notify you of your right to mediate, or if the insurer requested mediation and either party rejected the result, the policyholder is not required to complete contractual appraisal before suing over the unpaid claim.
Mandatory binding arbitration is different. A Florida property policy may not require binding arbitration unless the requirement is in a separate endorsement, the premium reflects a credit or discount for it, the policyholder signed a form electing it that discloses the rights given up, including trial by jury, mediation is offered first, and the insurer also offers a policy without arbitration (§ 627.70154). Check whether your policy has this endorsement, because it changes the path.
Notice deadlines still apply. Appraisal does not replace the claim notice rules. A claim or reopened claim is barred unless noticed within 1 year after the date of loss, and a supplemental claim within 18 months (§ 627.70132(2)).
“requiring the claimant to participate in appraisal or another method of alternative dispute resolution.”
§ 627.70152(3)
“The time limits provided in s. 95.11 are tolled as long as appraisal or other alternative dispute resolution is ongoing,”
§ 95.11(2)(e)
Your checklist
- Read the appraisal clause and calendar every deadline it sets.
- Separate amount disputes from coverage disputes before agreeing to appraisal.
- Choose an experienced, independent appraiser and get the terms in writing.
- Check the proposed umpire against Florida's disqualification grounds.
- Assemble photos, estimates, reports, and receipts into one evidence package.
- Review the award against limits, deductible, prior payments, and depreciation.
- Track the 90-day window under the presuit statute and the 5-year suit deadline.
How we handle these cases
We handle the appraisal process from the demand through the award: reviewing the clause, selecting an appraiser, vetting the umpire, assembling the evidence, and pursuing any amounts or coverage issues the award leaves unresolved. When appraisal is the wrong tool, we say so and explain the alternatives. We represent homeowners and condo owners throughout Florida. Meetings are by appointment only. Call 305-748-3789 to talk about your appraisal.
This article is general information, not legal advice for your situation. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.