Insurance appraisal is a valuation process written into most Pennsylvania homeowner, renter, landlord and commercial property policies. It is built for one narrow situation: your insurer agrees the loss is covered, at least in part, but the two of you can’t agree on what it costs to fix. The eight steps below follow a typical Pennsylvania claim from that first disagreement through the signed award and the check. Your own policy’s wording controls every step, so keep a copy of the full policy — not just the declarations page — next to you as you read.
- 1
Pin down the disagreement
Appraisal works best when everyone knows exactly what is in dispute. Start by laying your insurer’s estimate next to your contractor’s estimate and marking every difference: missing rooms, roof squares, pricing, code items, matching, overhead and profit, contents or additional living expense.
Put your position in writing to the adjuster, with photos, measurements and invoices attached. A clear supplement request sometimes closes the gap without appraisal at all. If it doesn’t, you now have a tidy list of the line items an appraisal panel will need to value — and a record showing that the dispute is about the amount of loss, not whether the loss is covered.
- 2
Check the policy and the suit-limitation date
Read the appraisal provision itself. Note who can demand appraisal, how many days each side has to name an appraiser, how the umpire is chosen and how fees are split. Look for any requirement to submit a sworn proof of loss first.
Then find the suit-limitation clause. Many Pennsylvania property policies require any lawsuit to be filed within one year of the date of loss, and Pennsylvania courts have generally enforced those clauses. Appraisal may not pause that clock unless the policy or a written agreement says it does. Mark the date on your calendar now, and if it is anywhere near, talk to a Pennsylvania attorney before you go further.
- 3
Send the written appraisal demand
Either you or the insurer can invoke appraisal. The demand should be in writing and should:
- identify the policy number, claim number and date of loss;
- state that the parties disagree on the amount of loss;
- cite the appraisal provision of the policy; and
- name your appraiser, or confirm you will do so within the policy’s time frame.
Send it in a way you can prove, such as certified mail plus email, and keep copies of everything. If the insurer responds by disputing coverage for part of the claim, note that in writing — appraisal will usually value only the items the panel is allowed to decide.
- 4
Each side names an appraiser
Each party picks its own appraiser. Most policies call for a “competent and disinterested” or “competent and independent” appraiser, and many give each side 20 days from the demand to make the choice — your policy will say.
Competent means the person understands construction, estimating software, local pricing and the type of damage involved, whether that is a slate roof in Scranton or a smoke-damaged twin in Allentown. Disinterested means no financial stake in the result beyond a reasonable fee. Your appraiser reviews the file, inspects the property and builds an independent valuation. The insurer’s appraiser does the same, and the two exchange estimates before they meet.
- 5
The appraisers pick an umpire (or a court of common pleas appoints one)
The two appraisers choose a neutral umpire, ideally early so one is ready if needed. The umpire’s job is limited: decide only the items the appraisers can’t settle between themselves.
If the appraisers can’t agree on an umpire within the policy’s window (often 15 days), policies typically let either party ask a court of record in the county where the property is located to appoint one. In Pennsylvania that is generally the county court of common pleas. The exact wording and timing come from your policy, so read it before filing anything, and consider having a Pennsylvania attorney handle the petition.
- 6
Appraisers inspect and negotiate
This is where most of the work happens. The two appraisers walk the property together, confirm measurements, look at hidden damage that was opened up after the first inspection, and compare unit pricing for the local market.
They then go line by line. Some items fall away quickly once both sides see the same evidence; others — matching siding on a stone-and-frame farmhouse, the number of slate squares on a steep Victorian roof, whether a code upgrade is triggered — take real discussion. When the appraisers agree on every disputed item, they sign an award together and no umpire decision is needed. A good share of appraisals end right here.
- 7
Umpire decides what’s left
Anything the appraisers can’t resolve goes to the umpire. Each appraiser presents a written position with photos, measurements, invoices, pricing data and code references. The umpire may inspect the property, ask questions of both appraisers or hold an informal meeting.
The umpire then decides each open item, usually by choosing one side’s figure or landing somewhere in between based on the evidence. An umpire is not there to rewrite the policy or rule on coverage; the decision is about value. Clear, well-organized submissions make the umpire’s job easier and tend to produce a cleaner award.
- 8
Award signed and payment issued
An award signed by any two of the three panel members generally sets the amount of loss. A well-built award separates replacement cost value, depreciation and actual cash value, and breaks figures out by coverage — dwelling, other structures, contents and loss of use.
The insurer then pays according to the policy, subtracting the deductible and any earlier payments. Recoverable depreciation is typically released once repairs are completed and documented. Pennsylvania courts generally treat appraisal awards much like common-law arbitration, so they are hard to overturn absent fraud, misconduct, corruption or a similar irregularity. If payment stalls after the award, talk to a Pennsylvania attorney.
What appraisal can’t decide
- Whether a loss is covered, or whether an exclusion such as flood or earth movement applies.
- Bad-faith claims, interest, punitive damages or attorney fees.
- Whether your suit-limitation deadline has been paused or extended.
- Any amount above your policy limits.
For coverage disputes, bad-faith questions or deadline concerns, talk to a Pennsylvania attorney who handles insurance claims. Our role is valuation: building and defending an accurate number for the loss.