The Texas Appraisal Clause: A Homeowner's Guide to Invoking It
The appraisal clause is the single most powerful tool a Texas policyholder has when the carrier's number is too low. Here's how it actually works.
Every standard Texas homeowners policy contains an appraisal clause. It is one paragraph, easy to miss, and it changes the leverage in a disputed claim overnight. When you and the carrier disagree on the amount of loss, either side can demand appraisal in writing. Each party picks a competent, disinterested appraiser; the two appraisers pick an umpire; any two of the three sign a binding award.
In Texas, appraisal is contractual, not statutory. That means it only exists because your policy says so — and the exact wording matters. Read the clause before you invoke. Most ISO-based Texas forms require written demand, competent and disinterested appraisers, and an umpire selected by the two appraisers (or by a court if they cannot agree within a set number of days).
Under State Farm Lloyds v. Johnson (Tex. 2009) and Tippett v. Safeco (5th Cir. 2023), the Texas panel can allocate damage across slopes and elevations — the panel can decide how much of the loss is storm-related and how much is wear, prior damage, or non-covered cause. That is exactly the fight most homeowners lose during the ordinary claim negotiation.
Cost: each party pays its own appraiser; the umpire is split 50/50. Appraisers should be retained hourly against a retainer — a contingent percentage-of-award appraiser is not disinterested. Timing is usually 30 to 120 days after the umpire is set.
Send us the estimate, the denial or partial-payment letter, and your policy declarations page and we'll tell you honestly whether appraisal is the right move — or whether a supplemental claim or coverage-litigation path serves you better.