The appraisal clause: your dispute tool short of a lawsuit
When you and the insurer disagree on the amount of loss, either side can demand appraisal: a binding valuation process.
Written and statute-checked by Dan Swenson, Minnesota attorney. Every legal claim cites the statute so you can verify it yourself.
What appraisal is
Minnesota's standard fire-policy text includes an appraisal provision for a disagreement over actual cash value or amount of loss. You pick an appraiser, the insurer picks an appraiser, the two appraisers select an umpire, and a written itemized award by any two determines the amount. The standard hail-policy text in section 65A.26 has different timing, so read the clause in your issued policy.
Appraisers determine amount and may decide factual issues incidental to valuation, but do not construe the policy or finally decide legal coverage questions. Appraisal does not automatically stop your suit deadline. Keep the deadline clock in view.
When it makes sense
Appraisal fits the classic hail dispute: the insurer approves a repair scope of half your roof, every contractor says full replacement, and the gap is tens of thousands of dollars. It's usually faster and cheaper than litigation.
You pay your appraiser and half the umpire. On small gaps the cost may not be worth it; on a full-roof dispute it usually is.
How to invoke it
Send the insurer a written demand for appraisal under the policy's appraisal provision, naming your appraiser. The policy sets the mechanics and timing from there. This is a point where a consultation with an attorney or licensed public adjuster earns its fee.