Appraisal Clause — Texas
Independent Appraiser for the Texas Appraisal Clause
Most Texas auto policies include an appraisal clause — a structured process for independent resolution when both sides reach an impasse on value. We serve as your independent appraiser through that process.
Licensed Texas appraisers · Independent representation
What is the appraisal clause?
The appraisal clause is language built into most Texas auto insurance policies that provides a structured process for independent resolution when both sides reach an impasse on the value of a covered loss — most often the actual cash value of a totaled or damaged vehicle.
When invoked, each side appoints an independent, competent appraiser. The two appraisers work to agree on value. If they can't, an umpire is selected, and any two of the three set the binding amount.
The process is typically faster and lower-cost than litigation and produces a binding result that both parties can move forward from.
Important: The appraisal clause resolves value, not coverage. If your insurer is denying coverage altogether, the clause may not apply — call us and we'll point you in the right direction.
When does invoking the clause make sense?
- Both sides have reached an impasse on value
- Your independent appraisal differs meaningfully from the carrier's valuation
- You have documentation supporting a different value (comps, options, condition)
- The settlement gap is large enough to justify the process (typically $1,000+)
How the appraisal process works
Invoke the clause in writing
Send written notice to your insurer demanding appraisal under your policy's appraisal clause. We'll help you draft it.
Each side names an appraiser
You name us as your independent appraiser. The insurer names theirs. Both must be competent and disinterested.
Appraisers negotiate value
Both appraisers exchange data, comps, and analysis. If they agree on a value, that becomes the binding settlement.
Umpire decides if needed
If appraisers can't agree, an umpire is selected. Any two of the three (your appraiser, theirs, the umpire) can set the final value.
