What the appraisal clause actually does
Most homeowner, farm and commercial property policies sold in North Dakota contain an appraisal provision. When the insured and the insurer agree a loss is covered but disagree on the dollar amount, either side can usually demand appraisal in writing. Each side then names a competent, disinterested appraiser, the two appraisers choose an umpire, and an award signed by any two of the three typically sets the amount of loss. The exact wording, deadlines and fee split differ from policy to policy, so the first thing we do is read yours.
Appraisal is not a lawsuit and it is not a negotiation by phone. It is a structured comparison of two estimates, item by item, by people who understand how buildings are put together and what it costs to repair them in this state.
Where North Dakota appraisals usually turn
In our experience, disputed claims here rarely hinge on one dramatic number. They come down to a handful of recurring gaps between the carrier’s estimate and what a contractor would actually have to do:
- Scope that stops short. Repairing only the visibly damaged slope of a roof or one elevation of siding when the materials can’t be matched, or when the damage pattern runs across the whole building.
- Cold-climate building details. Ice and water shield at eaves and valleys, drip edge, starter, step flashing and proper underlayment are often left off or priced as optional even where local code or the manufacturer’s instructions require them.
- Pricing that ignores the season. North Dakota’s exterior construction window is short. After a large storm, labor and materials can tighten quickly, and rural projects carry real travel and mobilization costs.
- Overhead and profit. When a loss reasonably requires a general contractor to coordinate several trades, leaving out overhead and profit can understate the claim.
- Interior follow-through. Ceiling stains, insulation, drywall, paint blending and contents manipulation that never made it onto the first estimate.
What we do as your appraiser
- Policy and file review. We read the appraisal clause, the declarations, any percentage wind or hail deductible and the carrier’s estimate and photos.
- Inspection. We walk the property, measure, photograph and document the damage pattern, materials and code-related items.
- Independent estimate. We prepare a line-by-line estimate using current local pricing so every difference from the carrier’s number can be traced to a specific item.
- Working with the other appraiser. Most items get resolved appraiser to appraiser. What can’t be agreed goes to the umpire with supporting documentation.
- Award. We explain the signed award and what it does and does not decide.
North Dakota Insurance Appraiser does not promise any particular result. Our job is to make sure the valuation that goes in front of the panel is complete, accurate and well supported.
What appraisal cannot decide
An appraisal panel values the loss. It generally does not decide whether the policy covers the damage, whether an exclusion applies, or whether the carrier handled the claim properly. North Dakota law recognizes claims against insurers for bad-faith conduct, and the state’s insurance code addresses unfair claim settlement practices, but those are legal questions. If coverage or claim handling is the real fight, talk to a North Dakota attorney. We are not a law firm and we are not a public adjuster.
Documents that help
- The full policy, including endorsements and the declarations page
- Every estimate, letter and payment from the carrier
- Date-stamped photos and video from before and after the loss
- Contractor bids, invoices for emergency work and any engineer’s report
Frequently asked questions
Who pays for appraisal?
Under most policies each side pays its own appraiser and the two sides split the umpire’s fee. Your policy wording controls, so we review it with you before you commit.
Can appraisal lower my claim?
It can. The panel sets the amount of loss based on the evidence, and that number can land anywhere. We give you a candid view of your estimate before you invoke the clause.
Do I need an attorney to demand appraisal?
Not necessarily. Many insureds demand appraisal by letter. If the carrier is disputing coverage or claim handling, you should speak with a North Dakota attorney.