This roadmap follows a typical Massachusetts property claim from the first disagreement over price to a signed award. Your own policy controls the details, so keep a copy of the full form, including endorsements, next to you as you read. If you want a sense of how big your gap is before you start, try the appraisal award gap estimator.
Step 1 — Pin down the disagreement
Appraisal is built for one question: how much a covered loss costs. Before invoking anything, write down where your numbers and the insurer’s numbers part ways. Is it the roof square count, the price of slate versus asphalt, whether the whole kitchen floor has to come up, or how much depreciation was taken? A short table comparing the two estimates line by line is often enough. Sometimes this exercise alone produces a supplement and the dispute ends. If it does not, you now have a clear record of what the panel will be asked to value.
Step 2 — Send the written demand
Either party can usually start the process with a written demand. A sound demand identifies the policy and claim numbers, says that you and the insurer disagree about the amount of loss, cites the appraisal or reference provision, and names your appraiser or says when you will. Send it in a way you can prove, such as certified mail plus email. Read your policy first: some forms ask for a sworn proof of loss or other steps before appraisal, and those requirements are easy to miss.
Step 3 — Name your appraiser
Each side picks its own appraiser, and most policies require that person to be competent and disinterested, meaning free of any financial stake in the result. Your appraiser reviews the claim file, the insurer’s estimate, your contractor’s bids and your photos, then inspects the property. Ask about experience with the kind of building involved, whether that is a Back Bay brownstone, a Worcester triple-decker or a shingle-style cottage in Barnstable. Our appraisal representation page explains how we approach this role.
Step 4 — Pick the umpire
The two appraisers then try to agree on an umpire, a neutral third person who decides only what the appraisers cannot settle between themselves. Choosing early is wise, because a qualified umpire may not be free on short notice after a big nor’easter. If the appraisers deadlock, most forms allow either party to ask a court to appoint one. We cover how candidates are vetted on our umpire selection page.
Step 5 — Inspect and exchange estimates
The appraisers usually walk the property together. They measure roof planes and rooms, note materials, look at the moisture map from mitigation and photograph anything the first adjuster may have skipped, such as interior ceiling stains below an ice dam. Each then shares a line-item estimate, often written in Xactimate or a similar program, with pricing tied to the local market and the date of loss.
Step 6 — Narrow the gap
This is where most of the work happens. The appraisers go item by item: quantities, unit prices, labor, overhead and profit, code items and depreciation. Items they agree on are locked in. Many appraisals end at this step with both appraisers signing the same award, and no umpire decision is needed.
Step 7 — Umpire decision
Whatever remains goes to the umpire. Each appraiser submits a short written position with supporting documents. The umpire may visit the property, ask questions or request more evidence, then decides each disputed item. The umpire’s job is to value the loss, not to choose a winner.
Step 8 — Award and payment
An award signed by any two of the three panel members sets the amount of loss. A clear award separates replacement cost, depreciation and actual cash value and lists items by coverage. The insurer then pays according to the policy, subtracting the deductible and earlier payments. Recoverable depreciation is commonly released after repairs are completed; the RCV, ACV and holdback calculator shows how those pieces fit together.
The Massachusetts “reference” procedure
Massachusetts law prescribes a standard fire policy, and that form contains a procedure for settling disputes over the amount of loss by disinterested referees. It is commonly called “reference.” Many modern homeowner and commercial forms in the state use the word “appraisal” instead, and the mechanics can look different from one form to the next. Some policies follow the standard fire policy wording closely; others borrow from national forms.
Why the wording matters
The number of panel members, how they are chosen, how costs are shared and how the decision is reported can all vary. We do not interpret statutes, and nothing here is legal advice. Read your own policy carefully and, if the procedure or its effect is unclear, consult a Massachusetts attorney. Our guide to the reference and appraisal clause goes further.
Fees
Under most policies, each side pays its own appraiser, and the umpire’s fee and other shared costs are split equally. Appraiser fees may be hourly, flat or tied to the award; whatever the structure, get it in writing before you sign anything. Ask what happens to the fee if the claim settles before the panel finishes.
What appraisal won’t decide
- Whether a loss is covered or excluded, such as wind versus flood after a coastal storm.
- Claims under Massachusetts consumer-protection or unfair-claim-practices laws, often referred to as Chapter 93A and Chapter 176D claims.
- Interest, penalties or attorney’s fees.
- Amounts above your policy limits or sub-limits.
Those are legal questions. An attorney can tell you whether any of them apply. Our role is valuation, and you can reach us through the contact page or browse the common questions.