What is appraisal in a Texas car insurance dispute?

What is appraisal in a Texas car insurance dispute?

The Texas Department of Insurance (TDI) describes appraisal as a way to resolve a dispute with an insurance company in Texas, and it explains who hires whom, who pays and what the result means for both sides. TDI says appraisal lets the policyholder and the company each hire an appraiser, and the two appraisers then choose a third appraiser as an umpire.¹ TDI says appraisal can only be used to resolve disputes about the amount of damage.¹ TDI says the policyholder pays for their own appraiser and half of the umpire’s costs.¹ TDI says the umpire’s decision in appraisal is binding on both the policyholder and the insurance company.² On who appraisal is for, TDI’s auto guide says:

You can use appraisal only for disputes with your insurance company. You can’t use it to resolve disputes with another person’s insurance company.

Who does what in appraisal, according to TDI?

Who	What TDI says
The policyholder and the company	Each hires an appraiser.1
The two appraisers	They choose a third appraiser as an umpire.1
The policyholder	Pays for their own appraiser and half of the umpire’s costs.1
The umpire	The umpire’s decision is binding on both the policyholder and the insurance company.2

What the sources do not state

The sources used here do not state how long appraisal takes or how a policyholder starts one.

Next step

TDI publishes its own text on the TDI auto insurance complaint page. The filing lookup tool is where to look up filing details for a situation.