Question 1

Is an appraisal award binding in California, and how is it enforced?

Accepted Answer

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.

Question 2

Is an appraisal award binding in Illinois, and how is it enforced?

Accepted Answer

Any two of three; binding (auto). An agreement by any two of the three (both appraisers, or one appraiser and the umpire) is binding on all parties; a final award is due within 5 business days of the umpire's selection (215 ILCS 5/398(b)(4)-(5)).

Question 3

Is an appraisal award binding in Indiana, and how is it enforced?

Accepted Answer

Unraised policy defenses can be waived. In Nakoa, the insurer "stood silently and idly by" while the appraisal valued the loss at replacement cost, without saying its own figure was actual cash value. The court held the insurer waived its ability to assert unmet conditions for replacement-cost coverage and affirmed judgment on the replacement-cost figure.

Question 4

Is an appraisal award binding in Iowa, and how is it enforced?

Accepted Answer

Binding; paid within 60 days. The umpire's written itemized award must list ACV and amount of loss by coverage type and be signed by the umpire and at least one appraiser (§522F.14(5)). Unless the parties agree otherwise in writing, the award is binding and paid within 60 days; an insurer's motion to vacate for good cause must be filed within 30 days (§522F.16).

Question 5

Is an appraisal award binding in Kansas, and how is it enforced?

Accepted Answer

Enforceability unsettled after 2018 repeal. Friday v. Trinity Universal of Kansas, 262 Kan. 347 (1997): the court held that the Legislature intended the insurance exclusion in K.S.A. 5-401(c)(1) "to apply to all insurance contracts that require any form of arbitration," and that the appraisal provision before it was "a form of an arbitration clause and is therefore prohibited." K.S.A. 5-401 was repealed by L. 2018, ch. 90, §35. The current validity section, K.S.A. 5-428(a), contains no insurance exclusion. HB 2351 (2025-2026), which would have made certain agreements to appraise or arbitrate in insurance contracts invalid, died. AUA has not reviewed post-2018 Kansas decisions on the question.

Question 6

Is an appraisal award binding in Louisiana, and how is it enforced?

Accepted Answer

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).

Question 7

Is an appraisal award binding in Minnesota, and how is it enforced?

Accepted Answer

Any two of three. A written, itemized award of any two of the appraisers and umpire, filed with the insurer, determines actual cash value and loss. Each party pays its own appraiser and shares the umpire and appraisal costs equally (§65A.01, subd. 3).

Question 8

Is an appraisal award binding in Nebraska, and how is it enforced?

Accepted Answer

Pre-dispute clause void; appraisal by agreement after a dispute. In Rawlings v. Amco Insurance Co., 231 Neb. 874 (1989), the court held unenforceable a homeowners policy's appraisal clause that bound the parties to a nonjudicial determination of the amount of a future loss, and reversed a judgment for the insurer based on the insureds' refusal to appraise. The Department's guidance document IGD-C11 (October 20, 2022; previously CB-139) says fire and lightning policies "should contain an appraisal provision that would permit appraisals only if agreed to by both parties after a dispute arises." The guidance describes itself as advisory.

Question 9

Is an appraisal award binding in New York, and how is it enforced?

Accepted Answer

Court can compel appraisal. If a party fails to proceed with appraisal after the other's demand, either party may ask the court for an order compelling compliance (Ins. Law §3408).

Question 10

Is an appraisal award binding in Ohio, and how is it enforced?

Accepted Answer

Binding; narrow grounds to challenge. In One Church v. Brotherhood Mutual Insurance Co., 2026-Ohio-2764, the Supreme Court of Ohio affirmed dismissal of a complaint challenging a binding appraisal award because it did not sufficiently identify a material mistake supporting relief.

Question 11

Is an appraisal award binding in Oklahoma, and how is it enforced?

Accepted Answer

Binds only the party that demanded appraisal. An itemized written award of any two, filed with the insurer, determines actual cash value and loss (36 O.S. §4803(G)). Answering a certified question in Massey v. Farmers Insurance Group, 837 P.2d 880 (Okla. 1992), the court held that §4803(G) "makes appraisal awards binding upon the party invoking the appraisal process, yet makes those same awards non-binding upon the party compelled to participate due to the other party's demand."

Question 12

Is an appraisal award binding in South Carolina, and how is it enforced?

Accepted Answer

Binding absent fraud or partiality. Hendricks v. American Fire & Casualty Co., 247 S.C. 479 (1966): where the insurer admitted liability and the parties disagreed on the amount, referral to appraisers was proper. A mere mistake of judgment does not vitiate an award "even though the award is for an inadequate sum"; an otherwise valid award stands "unless it is shown that there was fraud, actual or implied, or that the appraisers were not impartial." The court also discussed when notice of the appraisers' meeting is required where the policy is silent.

Question 13

Is an appraisal award binding in Texas, and how is it enforced?

Accepted Answer

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)).

Question 14

Is an appraisal award binding in Washington, and how is it enforced?

Accepted Answer

Conclusive; bias claims may go to a jury. Bainter v. United Pacific Insurance Co., 50 Wash. App. 242 (1988): the general rule is that an invoked appraisal award is "conclusive as to the amount of loss," but where the insured questions fairness "through allegations of bias, prejudice, or lack of disinterestedness on the part of either an appraiser or the umpire, factual issues properly reserved for jury determination may arise." The court affirmed confirmation of the award in that case.

Question 15

Is an appraisal award binding in Wisconsin, and how is it enforced?

Accepted Answer

Presumptively valid; narrow grounds to vacate. Farmers Automobile Insurance Ass'n v. Union Pacific Railway Co., 2009 WI 73: "Appraisals, then, are presumptively valid," and an appraisal "may be set aside only upon the showing of fraud, bad faith, a material mistake, or a lack of understanding or completion of the contractually assigned task." Discovery into the appraisal requires prima facie evidence of such a claim. In Badgerland Restoration & Remodeling, Inc. v. Federated Mutual Insurance Co., 2024 WI App 36, the Court of Appeals held that a complaint stated a claim for breach of the policy where the insurer refused to take part after the insured invoked the appraisal clause.

Appraisal Awards: Binding Effect and Challenges by State

California

Illinois

Indiana

Iowa

Kansas

Louisiana

Minnesota

Nebraska

New York

Ohio

Oklahoma

South Carolina

Texas

Washington

Wisconsin

Frequently asked questions

State	Rule
California	Reviewed under arbitration statutes
Illinois	Any two of three; binding (auto)
Indiana	Unraised policy defenses can be waived
Iowa	Binding; paid within 60 days
Kansas	Enforceability unsettled after 2018 repeal
Louisiana	Itemized decision of any two
Minnesota	Any two of three
Nebraska	Pre-dispute clause void; appraisal by agreement after a dispute
New York	Court can compel appraisal
Ohio	Binding; narrow grounds to challenge
Oklahoma	Binds only the party that demanded appraisal
South Carolina	Binding absent fraud or partiality
Texas	Binding except fraud, accident or material mistake
Washington	Conclusive; bias claims may go to a jury
Wisconsin	Presumptively valid; narrow grounds to vacate