How the Appraisal Clause Works in a South Carolina Claim
Most property policies include an appraisal clause, a way to settle a disagreement over the amount of a loss without a lawsuit. Here is how it works and when it fits.
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What appraisal is
An appraisal clause lets either side, you or the insurer, demand appraisal when you agree a loss is covered but disagree on how much it is worth. The exact steps are set by the wording of your policy, so read the clause first.
How it usually works
- One side makes a written demand for appraisal.
- Each side picks its own appraiser, usually within a set number of days.
- The two appraisers pick an umpire. If they cannot agree, many policies let a court appoint one.
- The appraisers try to agree on the amount of loss. If they cannot, an agreement by any two of the three (two appraisers, or one appraiser and the umpire) sets the amount.
- Each side usually pays its own appraiser and splits the umpire’s fee.
What appraisal does not decide
Appraisal generally sets the amount of the loss. It does not usually decide whether the policy covers the damage at all. If the insurer denies coverage, or the dispute is about cause (for example wind versus flood, or storm damage versus wear and tear), appraisal may not resolve it.
When appraisal fits
- The insurer accepts the claim but its estimate is far below your contractor’s.
- The dispute is about prices, quantities or the scope of repair.
- You want a faster result than a lawsuit.
Before you invoke appraisal
Your appraiser should be independent. South Carolina has little published case law on appraisal, so the policy wording carries extra weight. Appraisal can also interact with your deadline to sue: the 3-year limit in S.C. Code § 15-3-530(8) still applies. See claim deadlines in South Carolina.
Choosing an appraiser
Most appraisal clauses require each appraiser to be “competent and disinterested” or similar. Pick someone who knows construction pricing for your type of property and who has no stake in the result. Ask about their fee before you sign: an hourly fee or a flat fee, not a share of the award.
What it costs
Most policies make each side pay its own appraiser and split the umpire’s fee. On a small dispute, those costs can take a large share of any increase. On a large dispute about price and scope, appraisal is often faster and cheaper than a lawsuit.
After the award
An appraisal award sets the amount of the loss. The insurer then applies your deductible and any policy limits. On a replacement cost policy, the depreciation held back is usually paid after the repair is done, so keep invoices. If the insurer still refuses to pay, the award becomes evidence in a lawsuit on the policy.
When to talk to a lawyer first
- The insurer has denied coverage for part of the damage.
- The insurer demands appraisal and you are not sure you have to agree.
- Your 3-year deadline to sue is getting close.
- The amount in dispute is large, or the property is commercial or a condo or HOA association.
Questions about a claim? Call 843-284-5790 or request a case review.
This page is general information about South Carolina law, not legal advice. Reading it does not create an attorney-client relationship. Every claim depends on its own policy and facts.