How To: Invoke The Appraisal Clause in South Carolina

When you're at an impasse with your insurance carrier in South Carolina, the path forward can seem unclear. Unlike other states, there is not a large body of complex case law governing the appraisal process. While your insurer might see this as an opportunity for ambiguity, the reality is that it makes your position much stronger: the clear, unambiguous language of your insurance contract is the ultimate authority. This guide will show you how to invoke the appraisal clause in South Carolina using a formal appraisal demand letter. It will demonstrate how your policy guarantees a fair right to appraisal, empowering you to appoint an expert insurance appraiser and take control of the dispute without interference.

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 South Carolina.

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 and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss."

My claim arises from windstorm damage that occurred on May 31, 2025. Coverage4U Insurance Company has acknowledged coverage for this loss by inspecting the property and issuing a repair estimate of $11,236.37. The investigation and estimate prepared by my representative conclude that the amount of loss is $298,423.19. A clear disagreement on the amount of loss now exists. Specifically, the parties disagree on the appropriate scope, method, and cost of repairs required to restore the property to its pre-loss condition, including, but not limited to, the following key areas: the necessity of a full roof replacement to ensure a reasonably uniform appearance and the proper methodology for remediating interior water damage.

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 the policy’s appraisal clause. Now that a written demand for appraisal has been made, the policy’s appraisal provision is mandatory and must be enforced. The only remaining issue is the "amount of loss," a determination that necessarily includes the method and cost to repair my dwelling. I anticipate that you may attempt to refuse appraisal by asserting that the disagreement over the "scope of damages" constitutes a "question of coverage." This position is without legal merit and is in direct defiance of controlling law in South Carolina. Under South Carolina law, the appraisal process is independent of any coverage determination and may proceed even if the carrier has not made a final coverage decision.

In Vagish, LLC v. Seneca Specialty Ins. Co., No. 2:13-cv-03226-DCN (D.S.C. July 25, 2014), the U.S. District Court for the District of South Carolina compelled appraisal even where the insurer had not issued a formal coverage determination and was investigating potential arson. The court explicitly held that once a party invokes the appraisal condition, it becomes a mandatory provision for the other party. The court inVagish reasoned that any coverage disputes that are independent of the valuation of damages can be held in abeyance pending the appraisal, as the policy itself protects the carrier’s right to dispute coverage even after the appraisal is complete.

Therefore, any attempt to re-characterize this valuation dispute as a non-appraisable "coverage" issue is untenable. The existence of a scope dispute is the very reason appraisal is necessary, and under the clear precedent of Vagish, it cannot be used as a shield to delay or deny the process. The sole prerequisite for appraisal—a disagreement as to the amount of loss—has been met. Any refusal to promptly participate in the appraisal process now that a formal demand has been made would constitute a breach of the insurance contract. I expect your full compliance with the policy's mandatory appraisal provision and the timely appointment of your appraiser.

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

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 our firm and our designated appraiser.

I believe that appraisal is the most efficient mechanism to resolve this valuation dispute as contemplated by the contract of insurance. However, should you wish to resolve this claim amicably and avoid the time and expense of the appraisal process, I remain open to good-faith settlement discussions based on a complete and accurate scope of loss. If this claim can be reasonably settled for its proper value within the next twenty (20) days, this demand for appraisal will be satisfied and we will not need to move forward.

I look forward to your prompt cooperation in this matter and the timely naming of your chosen appraiser.

Sincerely,

[Your Name]

Conclusion: Enforcing Your Contractual Rights in South Carolina

In South Carolina, the lack of extensive legal precedent on appraisal is not a weakness for the policyholder—it is a strength. It means the clear, written terms of your insurance contract are paramount. Sending a formal demand to invoke the appraisal clause is not a request; it is you enforcing a mandatory provision of a contract you both agreed to. If you find yourself in a dispute over the amount of loss for your commercial roofing or fire damage restoration claim, this is your most powerful next step. By following a clear structure and naming a competent insurance appraiser, you can take control of the process and move your claim toward a fair and binding resolution.

Here is a simple outline for writing your South Carolina appraisal demand letter:

1. Formally Demand Appraisal: State clearly and immediately that you are invoking the appraisal provision of your policy.

2. Cite Your Policy Language: Quote the specific appraisal clause directly from your insurance contract.

3. Define the Dispute: Explicitly state that the disagreement is over the "amount of loss," referencing the large gap between the insurer's offer and the true cost of repairs.

4. Neutralize Their Objections: Proactively state that any attempt to call the valuation dispute a "coverage" issue is without merit and contrary to controlling case law.

5. Name Your Expert Appraiser: Provide the name and contact information of the competent and impartial appraiser you have selected.

6. Demand Compliance and Set Terms: Conclude by demanding they name their appraiser within the policy's timeframe, while leaving the door open for a good-faith settlement.