The Minnesota Insurance Appraisal Process, Step by Step

Appraisal is the part of a Minnesota property policy that most homeowners and building owners never read until a claim stalls. It exists for one situation: the insurer agrees there is a covered loss, but the two sides cannot agree on what it costs to fix. Minnesota’s standard fire policy statute, Minn. Stat. § 65A.01, builds an appraisal procedure into the policy form, and most homeowners and commercial policies sold here carry a version of it. This guide walks through the process the way Minnesota Insurance Appraiser sees it unfold, from the first sign of a gap to a signed award and a check. Your own policy wording controls, so treat this as an orientation, not legal advice.

Step 1: Pin down the disagreement

Before anyone uses the word “appraisal,” get specific about the gap. Put the adjuster’s estimate next to your contractor’s bid or an independent estimate and compare them line by line. Most differences fall into a handful of buckets: measurements (how many squares of roofing, how many linear feet of gutter), scope (repair versus replace, whether a full elevation of steel siding is included), pricing (labor and material rates for your part of the state), and add-ons such as overhead and profit, code upgrades or permit fees.

Write it down

Send the adjuster a short written summary of the items you dispute and attach your support: photos, a contractor’s itemized bid, manufacturer discontinuation letters for siding or shingles, code citations from your city’s building department. Many claims are resolved here through a supplement. If the carrier answers with a revised number that still leaves a meaningful gap, or stops responding, you have a documented record that you tried to resolve it first.

Step 2: Read the appraisal provision

Pull the full policy, not just the declarations page, and find the paragraph headed “Appraisal.” In a typical Minnesota form it says that if you and the insurer fail to agree on the amount of loss, either may make a written demand; each side selects a competent and disinterested appraiser; the two appraisers select an umpire; and an award in writing by any two of the three determines the amount of loss.

Check the conditions around it

• Proof of loss. Some policies expect a sworn proof of loss before payment or before suit. Know whether yours does and when it is due.
• Time limits. Standard language commonly limits lawsuits to two years after the loss. Appraisal does not always pause that clock, so confirm the deadline in your policy and with an attorney.
• Amount versus coverage. Appraisal decides how much, not whether. If the carrier has denied the claim outright, or the dispute is purely about what the policy covers, appraisal is usually the wrong tool.

In Quade v. Secura Insurance (Minn. 2012), the Minnesota Supreme Court indicated that appraisers may decide the cause of damage when that is part of determining the amount of loss, while questions of coverage remain for the courts. That distinction matters in hail and wind claims where the carrier says some damage is old or unrelated.

Step 3: Send a written demand

Either party may invoke appraisal. The demand should be a dated letter that includes the policy number, claim number and date of loss; a plain statement that you disagree with the insurer on the amount of loss; a reference to the appraisal provision; and the name and contact information of your appraiser, or a statement that you will name one within the policy’s time frame. Send it in a way you can prove, such as certified mail plus email to the adjuster.

Step 4: Each side names an appraiser

Many policies give each party about 20 days from the demand to name an appraiser. Your appraiser must be competent, meaning able to value this kind of loss, and disinterested, meaning no financial stake in the outcome beyond a reasonable fee. That is why many appraisers, including Minnesota Insurance Appraiser, avoid contingency fees tied to the size of the award, and why the contractor who will do the work is usually a poor choice for this role.

Once named, your appraiser reviews the file: the policy, the carrier’s estimate, photos, correspondence and any engineer or contractor reports. The insurer’s appraiser does the same on its side.

Step 5: Agree on an umpire

The two appraisers then try to agree on a neutral umpire, often within about 15 days under common policy wording. Good umpires are experienced with construction pricing and with the appraisal process itself, and they have no ties to either side. If the appraisers cannot agree, either party may ask a court to appoint one. In Minnesota that request generally goes to the district court in the county where the property is located; with 87 counties, that could be Hennepin, St. Louis or a rural county court.

Choosing the umpire early is useful even if the appraisers expect to settle. It means the panel can move quickly if talks break down.

Step 6: Inspect, measure and price

This is where the valuation work happens. The appraisers typically schedule a joint inspection, and they may each inspect separately as well. They measure roof facets and pitch, count damaged siding courses, test-fit replacement materials for matching, check interior ceilings for staining from ice dams, and note anything the original adjuster missed.

Building the estimate

Each appraiser prepares a line-item estimate, usually in Xactimate or a similar program, using current pricing for the local market. A well-built estimate separates replacement cost value, depreciation and actual cash value, and splits the loss by coverage: dwelling, other structures, personal property and loss of use. Code-required upgrades are listed separately where ordinance or law coverage applies.

Step 7: Negotiate and submit to the umpire

With both estimates on the table, the appraisers work through the differences. Many items resolve quickly once measurements are confirmed. Others, such as whether undamaged siding must be replaced to achieve a reasonable match, or how much depreciation to apply to a 12-year-old roof, take more back-and-forth. A large share of appraisals end here with both appraisers signing an agreed award.

Items they cannot settle go to the umpire. Each appraiser submits a written position with photos, invoices, manufacturer data or pricing support. The umpire may inspect, ask questions or meet with both appraisers, then decides each disputed line.

Step 8: Sign the award and collect payment

An award in writing signed by any two of the three panel members sets the amount of loss. A clear award lists replacement cost, depreciation and actual cash value by coverage, so the insurer and any mortgage company can process payment without confusion. The insurer then pays according to the policy: the award amount less the deductible and prior payments, with recoverable depreciation often released once repairs are completed and documented.

If the carrier delays payment after an award, or raises coverage defenses, those are legal questions. Minn. Stat. § 604.18 allows a court to award certain amounts when an insurer denies benefits without a reasonable basis, but it has its own procedural requirements and is a matter for an attorney.

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