Somewhere in the conditions section of nearly every Illinois homeowners, condo or commercial property policy sits a paragraph titled “Appraisal.” Most people never read it until a claim goes sideways. Here’s what it typically says and how it works in practice.
The typical wording
Policy forms differ, but most appraisal clauses say something like this: if you and the insurer fail to agree on the amount of loss, either may demand an appraisal of the loss in writing. Each party chooses a competent and impartial appraiser within a set number of days, often 20. The two appraisers choose an umpire; if they can’t agree within a set time, either party may ask a court to choose one. The appraisers state separately the value of the property and the amount of loss. If they fail to agree, they submit their differences to the umpire. A decision agreed to by any two will be binding.
Four phrases that matter
- “Fail to agree on the amount of loss.” Appraisal is about how much, not whether. Coverage disputes are generally outside it.
- “Either may demand.” You don’t need the insurer’s permission to invoke appraisal, and it can invoke appraisal too.
- “Competent and impartial.” Your appraiser should be qualified and shouldn’t have a financial stake in the repair contract.
- “Any two will be binding.” Two signatures settle the amount. That’s what gives the process its force.
What appraisal does well
It’s good at resolving scope and pricing disputes: how many slopes of a roof need replacing, whether siding can be matched, what a finished basement really costs to rebuild. It’s faster and less formal than litigation, and it puts people who understand construction in charge of the number.
What it doesn’t do
Appraisal doesn’t decide coverage, and it doesn’t award interest, attorney fees or the penalties a court might consider under Section 155 of the Illinois Insurance Code. If the insurer denied the claim outright or is citing an exclusion, you may need an attorney rather than, or before, an appraiser.
Before you invoke it
- Get the insurer’s complete line-item estimate.
- Get your own line-item estimate from a contractor or estimator.
- Read your policy’s appraisal and suit-limitation clauses.
- Check whether a sworn proof of loss is required first.
- Run the numbers to see whether the gap justifies the cost.
Our file strength score walks through these questions and builds a to-do list for anything that’s missing.