Step 1: Put the disagreement on paper
Appraisal starts with a claim that has been accepted, at least in part. The carrier has inspected and issued an estimate, and you believe it’s too low. Write down what you think is missing, attach your contractor’s or estimator’s number and the photos that support it, and send it to the adjuster. Many disputes end here, when a supplement is approved.
Step 2: Make the written demand
If the gap remains, either side can demand appraisal in writing. The demand should identify the claim, say the parties disagree on the amount of loss, invoke the appraisal provision and name your appraiser or commit to doing so on time. Send it in a way you can prove, such as certified mail plus email. Check first whether your policy requires a sworn proof of loss or another step.
Step 3: Each side names an appraiser
Under language based on New Jersey’s standard fire policy, each side commonly has 20 days from the demand to name a competent and disinterested appraiser. Your appraiser reviews the file, inspects the property and builds an independent valuation. The carrier’s appraiser does the same.
Step 4: The appraisers choose an umpire
The two appraisers pick a neutral umpire, often early so one is ready if needed. If they can’t agree within the policy’s window, commonly 15 days, either side can ask a judge to appoint one. In New Jersey that request goes to the Superior Court.
Step 5: The appraisers work the differences
This is where most of the work happens. The appraisers compare scope, measurements and pricing, often walking the property together, and agree on as many line items as they can. Many panels finish here with both appraisers signing an agreed award.
Step 6: The umpire decides what’s left
Items the appraisers can’t settle go to the umpire. Each appraiser submits a position with evidence. The umpire may inspect, ask questions or hold an informal meeting, then decides each disputed item.
Step 7: The award is signed and paid
An award signed by any two of the three sets the amount of loss. A good award separates replacement cost, depreciation and actual cash value by coverage. The insurer then pays under the policy, less the deductible and prior payments, with recoverable depreciation paid once repairs are done.
What appraisal won’t do
- It won’t decide whether a loss is covered.
- It won’t award interest, penalties or attorney’s fees.
- It won’t automatically pause your policy’s suit-limitation period.
- It won’t produce a payment higher than your policy limits.
Where New Jersey law fits in
The New Jersey Department of Banking and Insurance regulates insurers and licenses public adjusters. State law and regulations on unfair claim settlement practices set standards for prompt, fair claim handling, and New Jersey courts have recognized bad-faith claims against insurers in limited circumstances. Those are legal questions. If you think your claim has been handled unfairly, talk to a New Jersey attorney or file a complaint with the Department. Our role is valuation.