California Insurance Appraisal Law
California limits appraisal to valuation: an appraisal panel that decides coverage questions exceeds its powers, and courts review awards under the arbitration statutes. Under the standard form, appraisal is informal unless both sides agree otherwise, and after a government-declared disaster either side may request appraisal but it cannot be compelled.
Scope: Fire and property policies governed by California's standard form fire policy (Ins. Code §2071, as amended through Stats. 2018, ch. 639). AUA has not yet reviewed California rules on appraiser licensing.
Partially reviewed Review due Verified against the linked sources on October 20, 2026 · next review January 18, 2027
| Subject | California rule | Authority and related decisions |
|---|---|---|
| Contingency fees | Each side pays its appraiser; umpire shared. "Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally" (Ins. Code §2071, Appraisal). AUA has not yet reviewed California law on contingency fees for appraisers. | Statutes Cal. Ins. Code §2071 (standard form fire policy) |
| Impartiality | Competent and disinterested. California's standard form fire policy requires each party to select a competent and disinterested appraiser; the two appraisers then select an umpire (Ins. Code §2071). | Statutes Cal. Ins. Code §2071 (standard form fire policy) Court decision Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006) |
| Umpire selection | Appraisers select; judge if no agreement in 15 days. Where the appraisal request is accepted, the appraisers first select a competent and disinterested umpire; if they fail for 15 days to agree, a judge of a court of record in the state where the property is located selects the umpire on request of the insured or the insurer (Ins. Code §2071). | Statutes Cal. Ins. Code §2071 (standard form fire policy) |
| Causation | Limited. Kacha follows Safeco Ins. Co. v. Sharma (1984): unless the parties agree to give the panel broader powers, an appraisal panel may not decide whether the insured event caused the claimed damage. Read the opinions before relying on this summary. | Court decision Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006) Court decision Kacha v. Allstate Insurance Co. (140 Cal.App.4th 1023, 2006) |
| Coverage | Not allowed. In Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006), the Court of Appeal held that an appraisal panel exceeded its powers by making coverage determinations and ordered the award vacated. | Court decision Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006) Court decision Kacha v. Allstate Insurance Co. (140 Cal.App.4th 1023, 2006) |
| Award | Reviewed under arbitration statutes. Courts review appraisal awards under the arbitration statutes, including vacating an award where the appraisers exceeded their powers (Code Civ. Proc. §1286.2(a)(4)), as applied in Kacha. | Court decision Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006) Court decision Kacha v. Allstate Insurance Co. (140 Cal.App.4th 1023, 2006) |
| Deadlines | 20 days to name appraiser; 15 days for umpire; paid 60 days after award. Each party selects its appraiser and notifies the other within 20 days of the written request; the appraisers have 15 days to agree on an umpire before a judge may select one. The loss is payable 60 days after proof of loss is received and the loss is ascertained, either by written agreement or by filing the award with the insurer (Ins. Code §2071, Appraisal and When loss payable). | Statutes Cal. Ins. Code §2071 (standard form fire policy) |
Not yet reviewed for California: state license.
California authorities by category
Statutes and legislation
- Cal. Ins. Code §2071 (standard form fire policy): Impartiality, Contingency fees, Umpire selection, Deadlines
Administrative rules and codes
Regulator: California Department of Insurance
California court decisions
- Kacha v. Allstate Insurance Co. (140 Cal.App.4th 1023, 2006) (California Court of Appeal, Fourth District): An appraisal panel exceeded its powers by making coverage determinations; the award was ordered vacated. Subjects: Coverage, Causation, Award
Research, not legal advice. Each entry summarizes the linked statute, regulation, guidance or court decision as checked on the date shown. Laws change, policy wording controls, and courts in the same state can disagree. Read the source and consult a licensed attorney before relying on any entry. Coverage is not yet exhaustive: states marked "Not yet reviewed" have not been researched, not "no rule".
← All states · California in the research library · California decisions
Frequently asked questions
Can appraisers or umpires be paid based on the outcome in California?
Each side pays its appraiser; umpire shared. "Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally" (Ins. Code §2071, Appraisal). AUA has not yet reviewed California law on contingency fees for appraisers.
What impartiality standard applies to appraisers in California?
Competent and disinterested. California's standard form fire policy requires each party to select a competent and disinterested appraiser; the two appraisers then select an umpire (Ins. Code §2071).
How is the umpire chosen in California if the appraisers cannot agree?
Appraisers select; judge if no agreement in 15 days. Where the appraisal request is accepted, the appraisers first select a competent and disinterested umpire; if they fail for 15 days to agree, a judge of a court of record in the state where the property is located selects the umpire on request of the insured or the insurer (Ins. Code §2071).
Can an appraisal panel decide causation in California?
Limited. Kacha follows Safeco Ins. Co. v. Sharma (1984): unless the parties agree to give the panel broader powers, an appraisal panel may not decide whether the insured event caused the claimed damage. Read the opinions before relying on this summary.
Can an appraisal panel decide coverage in California?
Not allowed. In Kacha v. Allstate Insurance Co., 140 Cal.App.4th 1023 (2006), the Court of Appeal held that an appraisal panel exceeded its powers by making coverage determinations and ordered the award vacated.
Is an appraisal award binding in California, and how is it enforced?
Reviewed under arbitration statutes. Courts review appraisal awards under the arbitration statutes, including vacating an award where the appraisers exceeded their powers (Code Civ. Proc. §1286.2(a)(4)), as applied in Kacha.
What appraisal deadlines apply in California?
20 days to name appraiser; 15 days for umpire; paid 60 days after award. Each party selects its appraiser and notifies the other within 20 days of the written request; the appraisers have 15 days to agree on an umpire before a judge may select one. The loss is payable 60 days after proof of loss is received and the loss is ascertained, either by written agreement or by filing the award with the insurer (Ins. Code §2071, Appraisal and When loss payable).