Appraisal is a way to settle a disagreement about the amount of a covered property loss without going to court. Rhode Island law prescribes a standard fire insurance policy form, and its appraisal provision, together with similar wording in most homeowner and commercial policies, is what this guide describes. Your policy’s exact wording always controls.
Before you start: is this an appraisal dispute?
Appraisal works when the insurer agrees the loss is covered, at least in part, and the disagreement is about scope, pricing, repair method or value. It doesn’t decide whether a loss is covered, whether an exclusion applies or whether the insurer acted in bad faith. If your claim was denied, talk to a Rhode Island attorney first.
The seven stages
1. Spot the disagreement
Compare the carrier’s itemized estimate with your own. Our settlement gap estimator shows whether the difference is large enough to justify appraisal costs.
2. Send the written demand
The demand should identify the policy and claim, state that the parties disagree on the amount of loss and invoke the appraisal provision. Keep proof of when it was sent.
3. Each side names an appraiser
Policies typically give each side a set number of days, often 20, to name a competent and disinterested appraiser. “Disinterested” means the appraiser shouldn’t have a stake in the outcome beyond a normal fee.
4. The appraisers choose an umpire
The two appraisers try to agree on a neutral umpire. If they can’t within the time the policy allows, many policies let either party ask a court to appoint one.
5. The appraisers compare estimates
Each appraiser inspects and prepares a valuation. They then compare line by line. Most of the movement in appraisal happens here, and many files are resolved without the umpire.
6. The umpire resolves what’s left
Items still in dispute go to the umpire, who may inspect, ask for support and hear from both appraisers.
7. The award is signed
An award signed by any two of the three sets the amount of loss. The insurer then pays under the policy’s terms, after deductibles and any prior payments, and subject to coverage and limits.
Costs
Under most policies, each side pays its own appraiser and the umpire’s fee is split equally. Ask for any appraiser’s fee arrangement in writing.
How long it takes
Simple residential appraisals can finish in a few weeks once both appraisers are named. Large or complex claims can take months. Delays usually come from incomplete documentation, so prepare the file before you invoke.
Where Rhode Island claims add complexity
- Hurricane deductibles. A percentage deductible can change the payment more than any single line item.
- Wind versus flood. Homeowner policies exclude flood, so coastal losses often involve two policies and two processes.
- Older homes. Plaster, slate, cedar and historic district requirements raise repair costs.
Rhode Island also has a statute allowing policyholders to sue an insurer for bad-faith refusal to pay or settle a claim. That is a legal claim, separate from appraisal; an attorney can tell you whether it is relevant.