How To: Invoke The Appraisal Clause in Georgia

In Georgia, the insurance appraisal clause has a reputation for being particularly nuanced, largely due to a decade of legal battles over a single court case that insurance companies frequently use to their advantage. They would like you to believe the process is a legal minefield, hoping you’ll give up or hire an expensive property damage lawyer out of confusion. The reality, however, is much simpler: when a dispute is about the price and scope of repairs, not whether the damage is covered, you have a powerful contractual right to resolve it. Knowing how to invoke the appraisal clause by sending a formal appraisal demand letter is the key to breaking a deadlock. This guide will show you how to take control of the dispute by appointing a competent insurance appraiser and moving your claim toward a fair resolution.

Disclaimer: We are licensed Public Adjusters, not attorneys. The information and sample letter provided below are for educational purposes only, do not constitute legal advice, and are an example of how we successfully manage appraisal demands for our clients. You should consult with a qualified legal professional for advice on your specific situation.

Sample Appraisal Demand Letter

Here is a sample letter structured to formally invoke your policy rights and initiate the appraisal process in the state of Georgia.

By Email and By Certified Mail

Claims Department

Coverage4U Insurance

Insurance Company's Street Address

Insurance Company's City, State, Zip Code

Insurance Company's Email

RE: Insured: [Your Name Here]

Claim Number: [Insert Your Claim Number]

Policy Number: [Insert Your Policy Number]

Policyholder: [Your Name]

Date of Loss: [Insert Date of Loss]

Demand for Appraisal of Claim Number [Insert Your Claim Number]

To whom it may concern:

Please allow this correspondence to serve as my formal written demand to invoke the appraisal provision of the referenced insurance policy. A significant disagreement exists between myself and Coverage4U Insurance Company regarding the amount of loss sustained as a result of the covered peril that occurred on the date of loss referenced above. This demand is made pursuant to the terms and conditions of my policy to resolve this valuation dispute.

My policy’s appraisal clause, as amended by the Georgia Amendatory endorsement, provides as follows:

If you as the named insured and we fail to agree on the amount of a covered loss, either you or we can make a written demand for an appraisal of the loss. Each party will select a fair, competent, and disinterested appraiser who has no financial interest in the outcome of the appraisal. Each party will notify the other within 20 days of the appraiser's identity. The two appraisers will select an impartial, competent, and disinterested umpire. If the two appraisers are unable to select an umpire within 15 days, you or we can request that the choice of an umpire be made by a judge of a court of record in the state where the residence premises is located. The appraisers will separately set the amount of loss determining the full replacement cost and actual cash value for each item as needed. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of the loss. If they fail to agree, they will submit only their differences to the umpire. The written agreement by two of these three people for any item will set the amount of loss although it is not binding on you and us when filed with us. Any such decision will not restrict your right to bring legal action against us. You will pay the appraiser selected by you. We will pay the appraiser selected by us. You and we will split the other expenses of appraisal and the fee of the umpire. Disagreements over any coverage provided by this policy are not subject to appraisal.

My claim arises from windstorm damage that occurred on May 12, 2025. Coverage4U Insurance Company has acknowledged coverage for this loss by inspecting the property and issuing a repair estimate of $1,906.31. The investigation and estimate prepared by my representative conclude that the amount of loss is $56,759.83. This significant discrepancy stems from a fundamental disagreement on the appropriate method and cost of repairs required to restore my property to its pre-loss condition.

My policy states that it covers "the dwelling" itself as a single piece of covered property, and the dwelling must either be repaired to pre-loss condition with new materials of like-kind and quality, or the dwelling itself must be replaced. Because my dwelling does not need to be replaced at this point, and because it is undisputed that my dwelling sustained a covered loss, this is a dispute over the cost to repair my dwelling. The disagreement between the parties is a classic valuation dispute squarely within the purview of my policy’s appraisal clause. The issue is not one of coverage, but of quantum. Coverage4U Insurance Company has already conceded coverage for the loss by acknowledging damage from a covered peril and issuing an estimate for repairs. The only remaining issue is the "amount of loss," a determination that necessarily includes the method and cost to repair my dwelling. Any attempt to characterize this valuation dispute as a non-appraisable "coverage" issue by citing Lam v. Allstate Indem. Co., 327 Ga. App. 151 (2014), would be a misapplication of Georgia law. While carriers frequently cite Lam to argue that disagreements over the extent of damage are coverage questions, this interpretation ignores the broader context of Georgia case law, which grants appraisers the authority necessary to determine the full amount of loss.

In Bell v. Liberty Mutual Fire Ins. Co., 319 Ga. App. 302 (2012), the Georgia Court of Appeals affirmed that appraisers are not required to provide a component-by-component itemization of an award unless the policy explicitly requires it. The court allowed the dwelling to be valued as a single "item," reinforcing that appraisers are tasked with a holistic valuation of the damaged property. This precedent establishes that determining the overall scope of damage to a covered "item"—such as whether a roof requires partial or full replacement—is an inherent part of the appraiser's function in calculating the amount of loss. It is logically impossible for an appraiser to value the loss to an "item" without first determining the scope of repairs needed to restore it.

Pursuant to my policy, I have selected the following competent and impartial appraiser to act on my behalf in this matter:

Joshua Friedman

Friedman & Associates Public Adjusters

By Phone: 770-230-2616

By Email: Clientexperience@representation.claims

This letter constitutes my formal written demand for appraisal. I trust that you will select your appraiser within the 20-day period prescribed by the policy and provide written notification of your selection to both myself and my designated appraiser.

I expect your full compliance with the policy's appraisal provision. A refusal to proceed based on a narrow and self-serving reading of Lam would be contrary to the weight of Georgia authority and viewed as a breach of the insurance contract. I look forward to your prompt cooperation in this matter.

Sincerely,

[Your Name]

Conclusion: A Powerful Path to Resolution

Sending a formal demand to invoke the appraisal clause is a definitive statement that you will not accept an unfair settlement. It is a powerful legal maneuver that forces the dispute out of the hands of a biased company adjuster and into a more neutral arbitration-style setting. By following a clear and professional format, you demonstrate your resolve and command of the process. If you have reached a stalemate with your insurer, don't give up. A formal demand, backed by the expertise of a competent insurance appraiser or public adjuster, is your contractual right and the most effective next step to securing the settlement you are owed.

Here is a simple outline to follow when drafting your appraisal demand letter:

1. Formally State Your Intent: Begin by clearly stating that the letter is a formal written demand to invoke the appraisal provision of your insurance policy.

2. Identify the Dispute: Specify that a disagreement exists over the "amount of loss" and reference the significant discrepancy between their offer and the true cost of repairs.

3. Cite Your Policy Language: Quote the specific appraisal clause from your policy to show you understand your contractual rights.

4. Counteract Common Objections: Proactively address and dismantle the common carrier argument that the dispute is a "coverage" issue, citing relevant Georgia case law if possible. Remember, we are not attorneys and nothing here is to be considered legal advice. This is just how we prepare our own files for success.

5. Name Your Appraiser: Formally declare the name and contact information of the competent and impartial insurance appraiser you have selected.

6. Demand Compliance: Conclude by demanding that they comply with the policy's terms and name their own appraiser within the specified timeframe.

Ready to invoke the appraisal clause but uncertain who to use as an expert appraiser? Contact Us to find out more about our firm's appraisal services. We're ready to help.