Texas Insurance Appraisal Law
Texas enforces appraisal clauses broadly: appraisers may decide causation as part of setting the amount of loss, while liability and coverage remain questions for the courts. For TWIA claims, a statute sets the demand deadline, cost sharing, umpire selection and the grounds to vacate an award.
Scope: Property insurance appraisal under policy appraisal clauses, as interpreted by the Supreme Court of Texas. Since January 1, 2026, personal auto and residential property policies delivered, issued or renewed in Texas must contain an appraisal provision complying with Insurance Code Chapter 1813 (SB 458, 2025); it excludes TWIA and commercial policies. TDI's implementing rules (28 TAC §§5.9800-5.9806) were proposed in 2026 and had not been adopted as of this review. Entries labeled TWIA come from Tex. Ins. Code §2210.574 and 28 TAC §5.4214 and apply only to Texas Windstorm Insurance Association claims. AUA has not yet reviewed Texas rules on appraiser licensing.
Partially reviewed Review due Verified against the linked sources on October 20, 2026 · next review January 18, 2027
| Subject | Texas rule | Authority and related decisions |
|---|---|---|
| Contingency fees | TWIA: costs shared equally. For a TWIA appraisal, the claimant and the association "are responsible in equal shares for paying any costs incurred or charged in connection with the appraisal," including any umpire-roster fee (Tex. Ins. Code §2210.574(d)(2)). TWIA claims only. | Statutes Tex. Ins. Code §2210.574 (TWIA: disputes concerning amount of accepted coverage) |
| Impartiality | TWIA: umpire qualifications and conflicts set by rule. A TWIA appraisal umpire must be an engineer or architect with property-damage experience, an adjuster or public adjuster with estimating experience, an experienced general contractor, a licensed attorney, or a current or former Texas judge, and must have no disqualifying conflict, such as working for TWIA or the claimant, an open claim with TWIA, a current lawsuit with TWIA, or having adjusted the loss (28 TAC §5.4214, effective February 14, 2013). TWIA claims only. | Administrative rules 28 Tex. Admin. Code §5.4214 (TWIA appraisal umpire qualifications and conflicts), via Cornell LII |
| Umpire selection | TWIA: commissioner selects if no agreement. If the two appraisers agree on an umpire, that person serves. If they cannot agree, "the commissioner shall select an appraisal umpire from a roster of qualified umpires maintained by the department"; the department may require registration and charge a reasonable fee for the roster (Tex. Ins. Code §2210.574(e)). TWIA claims only. | Statutes Tex. Ins. Code §2210.574 (TWIA: disputes concerning amount of accepted coverage) |
| Causation | Allowed (within amount of loss). State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009): "Any appraisal necessarily includes some causation element" because setting the amount of loss requires separating damage from the covered event from damage caused by everything else. Appraisers decide damages; courts decide liability. The court reaffirmed Johnson in In re ACE American Insurance Co. (Tex. May 8, 2026). | Court decision State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009) Court decision In re ACE American Insurance Co. (Tex. May 8, 2026) Court decision In re ACE American Insurance Co. (Tex. May 8, 2026, 2026); State Farm Lloyds v. Johnson (290 S.W.3d 886, 2009) |
| Coverage | Amount of loss only. Under Johnson, appraisers determine the amount of damage while questions of coverage and liability are reserved for the courts. For personal auto and residential property policies since January 1, 2026, the required appraisal provision is "solely to determine the amount of loss" (Tex. Ins. Code §1813.003(b)), and an appraisal "does not affect any applicable policy terms" (§1813.004(a)). | Court decision State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009) Statutes Tex. Ins. Code ch. 1813 (Appraisal of Disputed Losses), added by SB 458 (2025) Court decision In re ACE American Insurance Co. (Tex. May 8, 2026, 2026); State Farm Lloyds v. Johnson (290 S.W.3d 886, 2009) |
| Award | Binding except fraud, accident or material mistake. For personal auto and residential property policies since January 1, 2026, the amount of loss set by appraisal is binding on the policyholder and insurer "except for fraud, accident, or material mistake relevant to the appraisal or an appraisal award made without authority," and the award must substantially comply with the policy's appraisal clause (Tex. Ins. Code §1813.004). For TWIA claims: the appraisal decision binds the claimant and TWIA on the amount of loss for an accepted claim and is not appealable, except that either side may sue within two years to vacate it and begin a new appraisal if it was obtained by corruption, fraud or other undue means; if a party's rights were prejudiced by an umpire's evident partiality or by corruption or misconduct of an appraiser or umpire; or if an appraiser or umpire exceeded their powers, refused a justified postponement, refused to consider material evidence or conducted the appraisal in a substantially prejudicial manner (Tex. Ins. Code §2210.574(f)-(g)). | Statutes Tex. Ins. Code ch. 1813 (Appraisal of Disputed Losses), added by SB 458 (2025) Statutes Tex. Ins. Code §2210.574 (TWIA: disputes concerning amount of accepted coverage) |
| Deadlines | TWIA: 60 days to demand; statewide periods pending TDI rules. A claimant who disputes the amount of loss may demand appraisal no later than the 60th day after receiving TWIA's coverage notice under §2210.573(d)(1) or (2). On a written request showing good cause, made within 15 days after that period ends, TWIA may allow 30 more days. A claimant who misses these periods waives the right to contest TWIA's loss determination. The appraisal must be completed within a period set by commissioner rule (Tex. Ins. Code §2210.574(b)-(d-1), (f)). For personal auto and residential property policies, Chapter 1813 requires the commissioner to adopt rules setting the period to complete an appraisal (§1813.002); TDI proposed those rules as 28 TAC §§5.9800-5.9806 and held a hearing on June 2, 2026. Check TDI for the adopted version and effective date. | Statutes Tex. Ins. Code §2210.574 (TWIA: disputes concerning amount of accepted coverage) Statutes Tex. Ins. Code ch. 1813 (Appraisal of Disputed Losses), added by SB 458 (2025) Department guidance TDI rule hearing, docket 2862: proposed 28 TAC §§5.9800-5.9806 (appraisal requirements) |
Not yet reviewed for Texas: state license.
Texas authorities by category
Statutes and legislation
- Tex. Ins. Code ch. 1813 (Appraisal of Disputed Losses), added by SB 458 (2025): Coverage, Award, Deadlines
- Tex. Ins. Code §2210.574 (TWIA: disputes concerning amount of accepted coverage): Contingency fees, Umpire selection, Award, Deadlines
Administrative rules and codes
- 28 Tex. Admin. Code §5.4214 (TWIA appraisal umpire qualifications and conflicts), via Cornell LII: Impartiality
- TDI rules (28 Texas Administrative Code)
Insurance department guidance
Regulator: Texas Department of Insurance
Texas court decisions
- In re ACE American Insurance Co. (Tex. May 8, 2026, 2026) (Supreme Court of Texas): The Supreme Court of Texas reaffirmed State Farm Lloyds v. Johnson and the broad contractual right to appraisal where the parties also dispute coverage, causation or bad faith. Subjects: Causation, Coverage
- State Farm Lloyds v. Johnson (290 S.W.3d 886, 2009) (Supreme Court of Texas): Appraisers may decide causation to the extent needed to set the amount of loss; "any appraisal necessarily includes some causation element." Liability questions remain for the courts. Subjects: Causation, 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".
← All states · Texas in the research library · Texas decisions
Frequently asked questions
Can appraisers or umpires be paid based on the outcome in Texas?
TWIA: costs shared equally. For a TWIA appraisal, the claimant and the association "are responsible in equal shares for paying any costs incurred or charged in connection with the appraisal," including any umpire-roster fee (Tex. Ins. Code §2210.574(d)(2)). TWIA claims only.
What impartiality standard applies to appraisers in Texas?
TWIA: umpire qualifications and conflicts set by rule. A TWIA appraisal umpire must be an engineer or architect with property-damage experience, an adjuster or public adjuster with estimating experience, an experienced general contractor, a licensed attorney, or a current or former Texas judge, and must have no disqualifying conflict, such as working for TWIA or the claimant, an open claim with TWIA, a current lawsuit with TWIA, or having adjusted the loss (28 TAC §5.4214, effective February 14, 2013). TWIA claims only.
How is the umpire chosen in Texas if the appraisers cannot agree?
TWIA: commissioner selects if no agreement. If the two appraisers agree on an umpire, that person serves. If they cannot agree, "the commissioner shall select an appraisal umpire from a roster of qualified umpires maintained by the department"; the department may require registration and charge a reasonable fee for the roster (Tex. Ins. Code §2210.574(e)). TWIA claims only.
Can an appraisal panel decide causation in Texas?
Allowed (within amount of loss). State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009): "Any appraisal necessarily includes some causation element" because setting the amount of loss requires separating damage from the covered event from damage caused by everything else. Appraisers decide damages; courts decide liability. The court reaffirmed Johnson in In re ACE American Insurance Co. (Tex. May 8, 2026).
Can an appraisal panel decide coverage in Texas?
Amount of loss only. Under Johnson, appraisers determine the amount of damage while questions of coverage and liability are reserved for the courts. For personal auto and residential property policies since January 1, 2026, the required appraisal provision is "solely to determine the amount of loss" (Tex. Ins. Code §1813.003(b)), and an appraisal "does not affect any applicable policy terms" (§1813.004(a)).
Is an appraisal award binding in Texas, and how is it enforced?
Binding except fraud, accident or material mistake. For personal auto and residential property policies since January 1, 2026, the amount of loss set by appraisal is binding on the policyholder and insurer "except for fraud, accident, or material mistake relevant to the appraisal or an appraisal award made without authority," and the award must substantially comply with the policy's appraisal clause (Tex. Ins. Code §1813.004). For TWIA claims: the appraisal decision binds the claimant and TWIA on the amount of loss for an accepted claim and is not appealable, except that either side may sue within two years to vacate it and begin a new appraisal if it was obtained by corruption, fraud or other undue means; if a party's rights were prejudiced by an umpire's evident partiality or by corruption or misconduct of an appraiser or umpire; or if an appraiser or umpire exceeded their powers, refused a justified postponement, refused to consider material evidence or conducted the appraisal in a substantially prejudicial manner (Tex. Ins. Code §2210.574(f)-(g)).
What appraisal deadlines apply in Texas?
TWIA: 60 days to demand; statewide periods pending TDI rules. A claimant who disputes the amount of loss may demand appraisal no later than the 60th day after receiving TWIA's coverage notice under §2210.573(d)(1) or (2). On a written request showing good cause, made within 15 days after that period ends, TWIA may allow 30 more days. A claimant who misses these periods waives the right to contest TWIA's loss determination. The appraisal must be completed within a period set by commissioner rule (Tex. Ins. Code §2210.574(b)-(d-1), (f)). For personal auto and residential property policies, Chapter 1813 requires the commissioner to adopt rules setting the period to complete an appraisal (§1813.002); TDI proposed those rules as 28 TAC §§5.9800-5.9806 and held a hearing on June 2, 2026. Check TDI for the adopted version and effective date.