Insurance appraisal is a dispute-resolution process written into most Arkansas property policies. It exists for one situation: you and your insurer agree the damage is covered but disagree about what it costs. Instead of arguing indefinitely or going straight to court, each side names an appraiser, the appraisers choose an umpire, and a written award signed by two of the three sets the amount of loss.
The steps below describe how the process commonly works. Your policy’s exact wording controls, so read your own appraisal paragraph alongside this guide.
1. Pin down the disagreement
Appraisal answers a price question. If the carrier has denied the claim entirely, or says a particular item isn’t covered, that is usually a coverage dispute that an appraisal panel can’t resolve. Before going further, confirm in writing what the carrier has accepted and what it has paid.
2. Read the appraisal paragraph
It usually sits in the Conditions section of the policy. Note how long each side has to name an appraiser, how the umpire is selected, how costs are divided and whether anything is excluded from appraisal. Some commercial forms limit what can be appraised.
3. Send a written demand
Either party can demand appraisal. The demand should be in writing, identify the claim number and date of loss, and describe the disagreement. Keep proof of when it was sent and received.
4. Name the appraisers
Each side names its own appraiser, often within 20 days of the demand. Your appraiser should know estimating software, construction methods and local pricing, and should be able to defend the numbers in front of an umpire.
5. Select an umpire
The two appraisers try to agree on a neutral umpire. If they can’t agree within the time the policy allows, either side can usually ask a court in the county where the property sits to appoint one.
6. Appraisers compare estimates
Each appraiser inspects the property and prepares a line-item estimate. They then compare the estimates, agree on what they can and list the items still in dispute. Most of the movement in an appraisal happens here.
7. Umpire decides what’s left
Disputed items go to the umpire, who reviews both positions, may inspect the property and decides each item. A good umpire explains the basis for each decision.
8. Award is signed and paid
When two of the three sign the award, the amount of loss is set for the items submitted. The insurer then applies the deductible, any prior payments and the policy’s replacement-cost terms. Questions about coverage, interest or penalties remain outside the award and may need an attorney.
How long it takes
Simple residential appraisals often finish within 30 to 90 days of the demand. Complex commercial claims, multi-building properties or panels that need an umpire decision on many items can take longer.
What it costs
Each side typically pays its own appraiser and half of the umpire’s fee. Appraiser fees may be hourly, flat or a percentage of the increase. Get the fee in writing before work begins, and use our claim gap and fee estimator to see whether the numbers make sense.
Arkansas context
Property insurance in Arkansas is regulated by the Arkansas Insurance Department, which accepts consumer complaints and publishes guidance for policyholders. Arkansas law also includes a statute that can add a penalty and attorney’s fees when an insurer fails to pay a covered loss within the time required after demand, and Arkansas courts recognize a bad-faith claim in limited circumstances. Those are legal remedies, separate from appraisal, and an Arkansas attorney is the right person to evaluate them.