When a Massachusetts homeowner disagrees with an insurer about the cost of a covered repair, the policy usually offers a way out that does not involve a courtroom. Depending on the form, it may be called “reference” or “appraisal.” The labels differ, but both aim at the same question: how much is the loss worth?
Where the word “reference” comes from
Massachusetts law prescribes a standard fire policy, and that form includes a procedure in which disinterested referees determine the amount of loss when the parties disagree. People in the industry commonly call it reference. Many modern homeowner and commercial policies sold in the state build on that framework but use the more familiar national term, appraisal. Some forms track the standard fire policy closely; others read more like national policy language.
It is also worth knowing that the same household can hold policies with different wording. A homeowner policy on a primary residence in Newton, a dwelling fire policy on a rental in Brockton and a FAIR Plan policy on a summer cottage in Wellfleet may each describe the dispute procedure in slightly different terms. Do not assume that what applied on one claim applies on the next.
Older commercial policies, especially on mixed-use buildings with a storefront below and apartments above, can contain their own versions as well. When a building has more than one policy, such as separate coverage for the building and for a business tenant’s improvements, each policy’s procedure is read on its own terms.
What the procedure usually involves
Although wording varies, most Massachusetts versions share a common shape:
- A written request by either party once there is a disagreement over the amount of loss.
- Each side naming its own qualified, disinterested appraiser or referee.
- A neutral third person, the umpire, to break deadlocks.
- A written decision, usually signed by at least two of the three, that fixes the amount of loss.
The full sequence, from first disagreement to payment, is laid out step by step on our appraisal roadmap.
Details worth checking in your form
Who chooses the third person
Many forms say the two appraisers select the umpire and, if they cannot agree, a court or other named authority may appoint one. Look for the exact language and any time limits.
How costs are shared
The usual pattern is that each side pays its own appraiser and shares the umpire’s fee. Some forms describe the split differently, so confirm before you start.
Conditions that come first
Some policies require a sworn proof of loss, an inspection or an examination under oath before or alongside the dispute procedure. Missing a condition can complicate things.
What the panel will and won’t decide
The panel decides the dollar value of damage. It generally does not decide whether a loss is covered, whether an exclusion applies or whether the insurer handled the claim fairly. Questions under the state’s consumer-protection and unfair-claim-practices laws, often called Chapter 93A and Chapter 176D claims, belong with an attorney, not an appraisal panel.
That line can blur. A dispute over how many roof slopes were damaged in a hailstorm near Pittsfield is usually about amount. A dispute over whether the damage came from hail at all may involve causation, which some courts treat differently. When in doubt, get legal advice before the panel convenes.
An illustrative example
Suppose, for illustration only, an insurer’s estimate for wind damage to a Quincy colonial is $18,000 and the owner’s contractor bids $31,000. The owner writes down the gap item by item, sends a written demand and names an appraiser. The two appraisers agree on most items, and the umpire decides two remaining questions about siding matching and code work. These figures are hypothetical and say nothing about how any real claim will end.
Next steps
Gather your full policy, the declarations page and every estimate. Then compare the numbers carefully, or ask us for a claim estimate review to see where the differences sit before you decide whether to invoke the process.