If your insurance company has offered you a settlement that doesn't come close to covering what it will actually cost to repair your home, you have a powerful option most homeowners don't know exists: the appraisal clause. Used correctly, it forces a binding, independent resolution — without a lawsuit, without a lawyer, and often within 30 to 60 days.
This guide walks you through exactly how to invoke it in Texas, step by step.
The appraisal clause only applies when both you and your insurer agree that your loss is covered — but you disagree on how much it's worth. This is called a valuation dispute.
If your insurer has denied your claim entirely — meaning they say the damage isn't covered at all — appraisal is not the right tool. You'll need to challenge the denial through a different process first. When in doubt, contact First Call Appraisal and we'll review your situation for free.
Your appraisal clause is typically found in the Conditions section of your homeowners policy. Look for a heading that says "Appraisal," "Loss Settlement," or "Dispute Resolution." Under Texas SB 458 (effective January 1, 2026), all residential policies must include this provision.
The clause will typically state that if you and your insurer cannot agree on the amount of loss, either party may demand an appraisal. It will outline how appraisers are selected and how the process works.
Important: Under Texas law, you have a limited window to invoke appraisal after a claim. Don't wait. If your insurer has made a settlement offer you disagree with, contact an appraiser right away to preserve your rights.
To invoke the appraisal clause, you need to hire a licensed, competent appraiser to represent your interests. This is not the same as hiring a home inspector or a roofing contractor for an estimate. Your appraiser must be qualified to assess the full scope of your loss, document it thoroughly, and represent the value of your claim in front of an appraisal panel.
First Call Appraisal holds Texas Public Adjuster and Appraiser license TX #1921679. We work on contingency, meaning you pay nothing upfront.
Invoking appraisal requires a written demand sent to your insurance company. This is not just a phone call or an email saying "I disagree." It is a formal legal notice that triggers your rights under the policy and under Texas Insurance Code Chapter 1813.
First Call Appraisal prepares and sends this letter on your behalf. It includes the required language, references the correct policy section, and puts your insurer on notice that the appraisal process has formally begun.
The letter should identify your policy number, claim number, the specific loss at issue, your position on the amount of loss, and a clear statement invoking the appraisal clause. It should be sent in a way that creates a paper trail — certified mail or email with confirmation.
Once your demand is received, your insurance company must appoint their own appraiser. Under the new TDI rules implementing SB 458, there are strict timelines for this — the insurer cannot simply stall or delay indefinitely.
Both appraisers independently inspect your property and document the damage. First Call Appraisal conducts thorough, hands-on inspections — checking every element of your home that was affected by the storm, including areas that insurance company adjusters routinely miss or minimize.
Good documentation at this stage is what drives the appraisal award. We photograph everything, take measurements, and build a complete scope of loss that supports full replacement cost value.
The two appraisers will attempt to agree on the amount of loss. In many cases, having a professional appraiser on your side — rather than accepting the insurer's estimate unchallenged — results in agreement at a number significantly higher than the original offer.
If the two appraisers cannot agree, they jointly select a neutral umpire. The umpire reviews both positions and makes a determination. An agreement between any two of the three parties — the two appraisers, or one appraiser and the umpire — produces the binding award.
The appraisal award is legally binding on your insurer under Texas law. They must pay it. The only grounds to challenge an award in court are fraud, accident, or material mistake — not simply disagreement with the outcome.
The entire process — from formal demand to binding award — typically takes 30 to 60 days. Compare that to years of litigation.
First Call Appraisal handles every step for DFW homeowners. Free review, no upfront fees.
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