Texas Law

What Is the Appraisal Clause?

The appraisal clause is a provision built into your auto insurance policy — not a separate law you have to invoke through a court. Here's what it is, in plain terms.

The Short Answer

It's a contractual right that lets either you or your insurer demand a binding, independent determination of a disputed claim amount, without filing a lawsuit. It applies to disagreements over dollar amount — not disputes over whether something is covered at all.

What It Doesn't Cover

The appraisal clause doesn't resolve coverage disputes (whether the policy covers the loss at all) or liability disputes (who was at fault). Those issues generally require a different process, sometimes involving an attorney.

Frequently Asked Questions

Who can invoke the appraisal clause?
Either the policyholder or the insurer can invoke it once a genuine disagreement exists over the dollar amount of a covered loss.

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