Georgia Insurance Appraisal Law
Georgia limits appraisal to disputed questions of value. The Court of Appeals has treated a disagreement over how much of a roof the wind damaged as a coverage question outside appraisal.
Scope: Property insurance appraisal under policy appraisal clauses, as interpreted by Georgia's appellate courts. The Supreme Court of Georgia rule below comes from an automobile total-loss case (McGowan); the Court of Appeals applied it to a homeowners claim in Lam.
Partially reviewed Review due Verified against the linked sources on October 20, 2026 · next review January 18, 2027
| Subject | Georgia rule | Authority and related decisions |
|---|---|---|
| Causation | Extent of covered damage treated as coverage. In Lam v. Allstate Indemnity Co., 327 Ga. App. 151 (2014), the insurer conceded wind damage to four shingles and the parties disagreed on how much of the roof the wind had damaged. The Court of Appeals (4-3) held that this disagreement was "over coverage, which is not a proper basis for an appraisal," and affirmed dismissal of the homeowner's suit to compel appraisal. | Court decision Lam v. Allstate Indemnity Co., 327 Ga. App. 151 (2014) Court decision Lam v. Allstate Indemnity Co. (327 Ga. App. 151, 2014) |
| Coverage | Not allowed. An appraisal clause "can only resolve a disputed issue of value. It cannot be invoked to resolve broader issues of liability"; using it that way would turn it into an arbitration clause, which is impermissible in insurance contracts under O.C.G.A. §9-9-2(c)(3) (McGowan v. Progressive Preferred Ins. Co., 281 Ga. 169 (2006), an automobile case). The Court of Appeals applied this rule to a homeowners policy in Lam v. Allstate Indemnity Co. (2014). | Court decision McGowan v. Progressive Preferred Insurance Co., 281 Ga. 169 (2006) Court decision Lam v. Allstate Indemnity Co., 327 Ga. App. 151 (2014) Court decision Lam v. Allstate Indemnity Co. (327 Ga. App. 151, 2014); McGowan v. Progressive Preferred Insurance Co. (281 Ga. 169, 2006) |
Not yet reviewed for Georgia: state license, contingency fees, impartiality, umpire selection, award, deadlines.
Georgia authorities by category
Administrative rules and codes
Regulator: Georgia Office of Commissioner of Insurance and Safety Fire
Georgia court decisions
- Lam v. Allstate Indemnity Co. (327 Ga. App. 151, 2014) (Court of Appeals of Georgia): Where the insurer conceded wind damage to four shingles but the parties disagreed on how much of the roof the wind damaged, the disagreement was over coverage and not a proper basis for appraisal. Subjects: Coverage, Causation
- McGowan v. Progressive Preferred Insurance Co. (281 Ga. 169, 2006) (Supreme Court of Georgia): An appraisal clause can only resolve a disputed issue of value, not broader issues of liability; using it that way would make it an arbitration clause, which is impermissible in insurance contracts. Appraisal did not moot the insured's fraud, contract and RICO claims. Subjects: Coverage
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".
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Frequently asked questions
Can an appraisal panel decide causation in Georgia?
Extent of covered damage treated as coverage. In Lam v. Allstate Indemnity Co., 327 Ga. App. 151 (2014), the insurer conceded wind damage to four shingles and the parties disagreed on how much of the roof the wind had damaged. The Court of Appeals (4-3) held that this disagreement was "over coverage, which is not a proper basis for an appraisal," and affirmed dismissal of the homeowner's suit to compel appraisal.
Can an appraisal panel decide coverage in Georgia?
Not allowed. An appraisal clause "can only resolve a disputed issue of value. It cannot be invoked to resolve broader issues of liability"; using it that way would turn it into an arbitration clause, which is impermissible in insurance contracts under O.C.G.A. §9-9-2(c)(3) (McGowan v. Progressive Preferred Ins. Co., 281 Ga. 169 (2006), an automobile case). The Court of Appeals applied this rule to a homeowners policy in Lam v. Allstate Indemnity Co. (2014).