Insurance Appraisal Questions from Maryland Owners

It is a section of most homeowners and commercial property policies that lets either you or your insurer resolve a disagreement over the amount of a covered loss outside of court. Each side names an appraiser, the two appraisers pick an umpire, and an award signed by any two of the three generally sets the amount. The exact wording varies, so read your own policy.

Generally, no. Appraisal is designed to decide how much the damage costs, not whether the policy covers it. If your insurer has denied the claim on coverage grounds, talk with a Maryland attorney or consider a complaint to the Maryland Insurance Administration.

Most policy forms treat a signed award as setting the amount of loss, and courts generally give awards considerable weight. Awards can sometimes be challenged, for example over fraud, bias or a panel deciding issues outside its authority. Ask an attorney if you are concerned about a specific award.

Yes, under most appraisal clauses either party can invoke it. If your insurer sends a demand, you will usually need to name your own appraiser within the time the policy sets. Reading the demand carefully and responding on time protects your position.

No. Maryland Insurance Appraiser is an independent appraisal firm that handles appraisal representation, estimate review and umpire work. We don’t give legal advice or negotiate coverage, and we will tell you when a question needs an attorney.

Under most policies, each side pays its own appraiser and the umpire’s fee is split equally. Other shared costs, such as an engineer the panel agrees to bring in, are often divided the same way. Check your policy, because some forms word this differently.

Common arrangements include hourly rates, a flat fee or a fee tied to the size of the claim. Whatever the structure, get it in writing before work starts. Be cautious about any arrangement that could make the appraiser look less than disinterested.

It depends on the gap and the costs. If the difference between estimates is only a few thousand dollars, appraiser and umpire fees may eat most of it. A quick estimate review can help you decide before you commit.

Appraisal costs are usually your responsibility under the policy, even if the award is higher than the insurer’s estimate. Whether any expenses can be recovered in a separate legal claim is a question for a Maryland attorney.

Many residential appraisals wrap up within a few weeks to a few months, depending on how quickly appraisers are named, how complex the damage is and whether the umpire is needed. Large commercial or condominium claims can take longer. Good documentation is the biggest factor you control.

Many policies give each side about 20 days after the written demand. Your policy may use a different period, so check the wording and calendar the date as soon as a demand is sent or received.

Don’t assume so. Maryland’s general contract limitations period is three years, and Maryland law generally doesn’t let property policies shorten it, but when that clock starts can be disputed. Ask an attorney about your dates before relying on appraisal to protect them.

Some policies don’t set one, while others tie appraisal to other claim steps. Waiting too long or acting inconsistently with appraisal can create arguments that the right was waived. It is usually best to decide once the insurer’s final estimate is clear.

Usually after repairs are completed and documented. Many policies set a time window for completing repairs to collect replacement cost, so read that section and keep invoices and photos of the finished work.

They do different jobs. An MIA complaint addresses how the insurer handled your claim, such as delays or unexplained decisions, while appraisal sets the dollar amount of a covered loss. Some people use both; an attorney can help if legal remedies are involved.

Yes, and you should keep communication professional and in writing where possible. Your appraiser handles the valuation discussion with the insurer’s appraiser, but the adjuster still manages payments, coverage letters and other claim steps.

If the policy contains an appraisal clause, refusal raises legal questions about enforcing the contract. Many policies allow a court to appoint an umpire, and courts can be asked to compel appraisal in some situations. That is a matter for a Maryland attorney.

MJIA policies have their own policy forms, so read the conditions section to see what dispute resolution options apply. The same basic principles about documenting the loss and comparing estimates still help.

Appraisal can set the amount of damage, but whether a percentage hurricane or named-storm deductible was triggered is usually a coverage question about policy definitions. If the trigger is disputed, ask an attorney or the MIA alongside any appraisal of the amount.

It can, when the insurer accepts that interior water damage from an ice dam is covered but undervalues the repair. Disputes over whether long-term seepage or wear is excluded are coverage questions rather than appraisal questions.

Whether damage was caused by the storm is sometimes treated as part of the amount of loss and sometimes as coverage, depending on the policy and the facts. Because Maryland law on this point can turn on details, get legal advice if causation is the main dispute.

Usually not. Standard homeowners policies typically exclude flood, and flood insurance through the NFIP or a private carrier has its own dispute procedures. Tidal or stream flooding claims should be checked against the separate flood policy.