Appraisal is a short paragraph in your policy that turns into a defined process once someone invokes it. These are the seven stages most Illinois appraisals move through, what happens at each one, and where claims tend to go off track.
Step 1 — Pin down the disagreement
Appraisal starts with a claim the insurer has accepted at least in part. It has inspected and issued an estimate, and you or your contractor think the number is too low. Before invoking anything, write down exactly what you think is missing or underpriced and gather the support: your contractor’s line-item estimate, photos and measurements. Send it to the adjuster as a supplement request. Some disputes end right here.
Step 2 — Make the written demand
If the gap remains, either party can demand appraisal in writing. A clear demand identifies the policy and claim number, states that the parties disagree on the amount of loss, invokes the appraisal provision and names your appraiser (or commits to doing so within the policy’s time frame). Send it in a way you can prove, such as certified mail plus email. Check first whether your policy requires a sworn proof of loss or other steps before appraisal.
Step 3 — Each side names an appraiser
Each party selects a competent and impartial appraiser, commonly within 20 days of the demand. Your appraiser reviews the file, inspects the property and builds an independent estimate. The insurer’s appraiser does the same. The two exchange estimates and begin comparing them item by item.
Step 4 — Select an umpire
The two appraisers choose a neutral umpire, ideally early so one is ready if needed. If they can’t agree within the policy’s time limit (often 15 days), either party may ask a court to appoint one. In Illinois, that request typically goes to the circuit court for the county where the property is located, and it usually involves an attorney.
Step 5 — Appraisers work the differences
This is where most of the work happens. The appraisers often re-inspect together, reconcile measurements, compare pricing and agree on as many items as they can. A large share of appraisals end at this stage with both appraisers signing an agreed award, without the umpire deciding anything.
Step 6 — The umpire decides what’s left
Items the appraisers can’t agree on go to the umpire. Each appraiser submits a position with supporting evidence. The umpire may inspect, ask questions or hold an informal hearing, and then decides each disputed item.
Step 7 — The award and payment
An award signed by any two of the three panel members sets the amount of loss. A good award separates replacement cost, depreciation and actual cash value and lists items by coverage. The insurer then pays according to the policy, less the deductible and earlier payments, with recoverable depreciation paid once repairs are complete.
What appraisal can’t do
- It doesn’t decide whether a loss is covered.
- It doesn’t award interest, attorney fees or the statutory penalties Illinois courts may consider under Section 155 of the Insurance Code.
- It doesn’t automatically pause your policy’s suit-limitation period.
- It can’t produce an amount above your policy limits or sublimits.
For those questions, talk to an Illinois attorney who handles insurance disputes. You can also file a consumer complaint with the Illinois Department of Insurance. Our role is valuation.