Louisiana Insurance Appraisal Law

Registration with the Commissioner. An appraiser must have at least three years of experience, experience or training in estimating property damage, and an active license as an engineer, architect, adjuster, public adjuster or general contractor (La. R.S. 22:1807.14), and must register with the Commissioner, who publishes the list (§1807.15). An umpire must qualify as an appraiser or be a Louisiana attorney experienced in first-party property damage litigation (§1807.17); umpires who want to be on the Commissioner's list must register (§1807.18). The Commissioner may revoke registrations.

Contingency fees prohibited. Parties may not pay an appraiser or umpire "on a contingent fee basis, percentage of the decision, barter arrangement, gift, favor, or in-kind exchange" (La. R.S. 22:1807.23(C); see also §1807.16(E), §1807.20). Each party pays its own appraiser and half of the umpire's fees and appraisal costs; no umpire fee is owed if the parties settle before the umpire begins work. A Commissioner-selected umpire charges an hourly rate set by the Commissioner (§1807.21).

Independent and qualified; conflicts disclosed. Each side selects an appraiser "who is independent and qualified" (La. R.S. 22:1807.13). Appraisers and umpires must disclose potential conflicts no later than five days after being hired and before starting work, and the statute lists disqualifying conflicts, such as a family member who is a party or works for a party, or a pending lawsuit against the insurer (§1807.14, §1807.16, §1807.17). Separate communications with the umpire are prohibited except for listed logistical matters (§1807.22).

Judge selects, or Commissioner panel. If the appraisers cannot agree on an umpire, either may ask a judge to select a qualified umpire. Alternatively, the appraisers may agree to ask the Commissioner, who randomly notifies at least five registered umpires and sends the parties a panel to choose from; if they still cannot agree, they may agree to a random selection from the panel, or a judge appoints (La. R.S. 22:1807.13, §1807.19). The umpire may not begin work until the appraisers fail to agree and direct the umpire in writing (§1807.20).

Only for accepted claims; policy terms still apply. The statutory appraisal process applies when the insurer has accepted coverage in whole or in part and the dispute is over the amount of loss on the accepted portion (La. R.S. 22:1807.12). The award sets the amount of loss subject to the policy's terms, limits, deductibles and conditions (§1807.13(D)).

Itemized decision of any two. An itemized decision agreed to by both appraisers, or by one appraiser and the umpire, sets the amount of loss the insurer will pay, subject to policy terms. The umpire may agree with either or both appraisers on a compromise basis (La. R.S. 22:1807.13(D)) and must give the parties an itemized written decision (§1807.20).

Demand within a reasonable time. In Alina LLC v. State Farm Fire & Casualty Co. (W.D. La. Aug. 31, 2026), the district court reversed an order compelling appraisal after finding error in how a reasonable-time standard was applied to the undisputed facts. A district-court ruling, specific to its record.