Step 1: Pin down the disagreement
Appraisal settles one kind of argument: how much a covered loss is worth. Before anyone sends a demand, get specific about where you and the carrier part ways. Is the gap in roof squares, in the price of siding, in whether drywall gets patched or replaced, or in overhead and profit?
- Lay your contractor’s estimate next to the carrier’s and mark every line that differs.
- Ask the adjuster in writing to reconsider the items you can document. A supplement sometimes closes the gap without appraisal.
- Note anything the carrier calls a coverage question rather than a pricing question, because that part may not belong in appraisal at all.
A short, written list of disputed items becomes the backbone of everything that follows.
Step 2: Read the appraisal provision
Find the policy itself, not just the declarations page, and locate the paragraph usually titled “Appraisal” in the conditions section. Policies vary, so read your own wording rather than relying on a summary. Look for:
- Who may demand appraisal and whether the demand must be in writing.
- How many days each side has to name its appraiser.
- How the umpire is chosen and what happens if the appraisers can’t agree on one.
- How appraiser and umpire costs are split.
- Any requirement that appraisers be “competent,” “independent,” “impartial” or “disinterested.”
Also check for related duties, such as a sworn proof of loss or a suit-limitation period, that run on their own clocks while appraisal is underway.
Step 3: Send a written demand
Once the gap is clear and the clause is understood, the demand itself is usually short. A typical demand letter:
- Identifies the policyholder, property address, policy number and claim number.
- States that the parties disagree on the amount of loss.
- Invokes the appraisal provision by name.
- Names your appraiser, or commits to naming one within the policy’s time limit.
Send it in a way you can prove later, such as email plus certified mail, and keep copies of everything. Stay factual and calm; the letter isn’t the place to argue the estimate. If the carrier responds that some items are coverage disputes, note that in your file and keep the appraisal moving on the amounts.
Step 4: Choose your appraiser
Your appraiser builds and defends your valuation, so choose someone who understands construction pricing, the type of damage involved and the appraisal procedure itself. Ask any candidate:
- How they’re paid, and whether the fee structure could be challenged under an impartiality requirement in your policy.
- Whether they have any relationship with your contractor, your carrier or the property.
- Which estimating platform they use and how they handle local pricing.
- How they communicate progress and what they need from you.
The carrier names its own appraiser on the same timeline. Each appraiser works for the side that hired them, but each should also be able to sign an award they can stand behind.
Step 5: Select the umpire
The two appraisers try to agree on a neutral umpire, ideally early, so one is in place before any impasse. A good umpire understands estimating and construction, has no ties to either side and is willing to look at evidence rather than split the difference by habit.
If the appraisers can’t agree within the time the policy allows, many clauses let either party ask a court to appoint one. In Wisconsin that request typically goes to the circuit court for the county where the property is located, though policies vary in how they describe the court and the procedure. Our umpire selection page explains what a strong candidate list looks like.
Step 6: Inspect and build estimates
Each appraiser inspects the property, ideally with the other appraiser present, and documents what they see. For a roof that might mean measuring every slope, counting hail hits in test areas and noting the shingle line. For a water loss it might mean moisture readings, cut lines and contents lists.
From that inspection each side prepares or refines a line-item estimate. Good estimates are specific: quantities, unit prices, labor, materials, tear-off, disposal, code items and access costs. Photos and measurements should support each disputed line, because the strongest number in appraisal is the one with evidence behind it. If you want an outside look at the carrier’s figures first, see our carrier estimate review.
Step 7: Negotiate line by line
With both estimates in hand, the appraisers compare them line by line. Many items settle quickly once measurements are reconciled or a missing component is spotted. The harder items, such as matching, repair versus replacement, or overhead and profit, take documentation and discussion.
- Agreed lines are recorded so they don’t get reopened.
- Disputed lines are narrowed to a specific quantity or price difference.
- Each appraiser prepares a short written position for anything still open.
When the two appraisers reach full agreement, they sign an award and the umpire never needs to decide anything. When they don’t, only the remaining disputed items go to the umpire, which keeps the decision focused and the cost contained.
Step 8: Sign the award and get paid
An award signed by the two appraisers, or by one appraiser and the umpire, generally sets the amount of loss. A clear award separates replacement cost from actual cash value and lists categories such as dwelling, other structures and contents, so payment can be calculated without new arguments.
After the award, the carrier applies the deductible, prior payments and any depreciation holdback under the policy terms. Recoverable depreciation is often released once repairs are completed and documented, so keep invoices and photos. Our RCV, ACV and holdback calculator can help you see how the numbers usually flow. If payment stalls or coverage is disputed after the award, talk to a Wisconsin attorney.
What appraisal costs
Most appraisal clauses say each side pays its own appraiser and the two sides split the umpire’s fee and other shared expenses equally. Read your policy, because the split isn’t universal.
How appraisers are paid
Appraisers commonly charge a flat fee, an hourly rate, or a combination. Some offer a percentage of the award. Where a policy requires a “disinterested” or “impartial” appraiser, a fee tied to the outcome can invite a challenge to the award, so ask any appraiser to explain their arrangement in writing before you sign. We quote our fee up front and explain what it covers.
When appraisal may not pay off
If the gap between estimates is small compared with the likely appraiser and umpire costs, a documented supplement or a second conversation with the adjuster may make more sense. Our settlement gap calculator helps you weigh that.
What appraisal won’t decide
An appraisal panel values the loss. It generally does not decide legal questions, including:
- Coverage. Whether a peril, a part of the building or an item is covered under the policy is usually for the carrier, and ultimately a court, to decide.
- Bad faith. Whether a carrier handled a claim unreasonably is a legal claim, not an appraisal issue.
- Interest and penalties. Questions about late payment and what is owed for delay sit outside the panel’s job.
The panel can, however, value disputed items separately so that a later coverage decision can be applied to the numbers without starting over.
Wisconsin specifics
Insurance in Wisconsin is regulated by the Office of the Commissioner of Insurance (OCI), which licenses insurers and agents and accepts consumer complaints. A complaint to OCI is separate from appraisal and doesn’t replace it.
If the two appraisers can’t agree on an umpire, many policies allow either side to ask a court to appoint one. In practice that is usually the circuit court in the county where the property sits, but policies vary in their wording.
Wisconsin courts recognize bad-faith claims against insurers, and a Wisconsin statute addresses timely payment of claims and interest on overdue amounts. How those rules apply depends on the facts and the policy. We are appraisers, not lawyers, and we don’t give legal advice; for legal questions, consult a Wisconsin attorney.
Documents to gather
- The full policy, including the declarations page and all endorsements.
- Every carrier estimate, letter and payment record on the claim.
- Your contractor’s estimate, invoices and any bids.
- Dated photos and video of the damage, before and after any mitigation.
- Mitigation invoices, moisture logs and receipts for emergency repairs.
- A log of calls, emails and inspections with names and dates.
Not sure you’re ready? Try the appraisal readiness quiz, or contact us to talk through your file.