Wisconsin Insurance Appraisal Law
Wisconsin's statutes permit appraisal provisions, let a court appoint a disinterested appraiser or umpire when an approved policy provides for it, and toll the limitation period during appraisal. The Wisconsin Supreme Court treats appraisal awards as presumptively valid.
Scope: Insurance policies that contain appraisal provisions, which Wis. Stat. §631.85 permits subject to form approval under §631.20 (§631.85 does not apply to certain surplus lines forms).
Partially reviewed Review due Verified against the linked sources on October 20, 2026 · next review January 18, 2027
| Subject | Wisconsin rule | Authority and related decisions |
|---|---|---|
| Umpire selection | Court appoints on request. If an approved policy provides for applying to a court of record for appointment of a disinterested appraiser, arbitrator or umpire, any court of record except the court of appeals or the supreme court may be asked, and "the court shall make the appointment promptly" (Wis. Stat. §631.85). | Statutes Wis. Stat. §§631.83 and 631.85 (limitations; appraisal or arbitration) |
| Award | 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. | Court decision Farmers Automobile Insurance Ass'n v. Union Pacific Railway Co., 2009 WI 73 Court decision Badgerland Restoration & Remodeling, Inc. v. Federated Mutual Insurance Co., 2024 WI App 36 Court decision Badgerland Restoration & Remodeling, Inc. v. Federated Mutual Insurance Co. (2024 WI App 36, 2024); Farmers Automobile Insurance Ass'n v. Union Pacific Railway Co. (2009 WI 73, 2009) |
| Deadlines | Limitation period tolled during appraisal. An action on a fire insurance policy must be commenced within 12 months after the inception of the loss (Wis. Stat. §631.83(1)(a)), but the period of limitation is tolled while the parties conduct an appraisal or arbitration procedure prescribed by the policy or by law, or agreed to by the parties (§631.83(5)). The statute's annotations note that an agreement to appraise requires more than an agreement to meet and discuss the dispute. | Statutes Wis. Stat. §§631.83 and 631.85 (limitations; appraisal or arbitration) |
Not yet reviewed for Wisconsin: state license, contingency fees, impartiality, causation, coverage.
Wisconsin authorities by category
Statutes and legislation
Administrative rules and codes
Regulator: Wisconsin Office of the Commissioner of Insurance
Wisconsin court decisions
- Badgerland Restoration & Remodeling, Inc. v. Federated Mutual Insurance Co. (2024 WI App 36, 2024) (Court of Appeals of Wisconsin): Reversed dismissal of a complaint alleging that the insurer breached the policy by refusing to participate in appraisal after the insured invoked the appraisal clause. Subjects: Award
- Farmers Automobile Insurance Ass'n v. Union Pacific Railway Co. (2009 WI 73, 2009) (Supreme Court of Wisconsin): Appraisals are presumptively valid and may be set aside only for 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. Subjects: 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".
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Frequently asked questions
How is the umpire chosen in Wisconsin if the appraisers cannot agree?
Court appoints on request. If an approved policy provides for applying to a court of record for appointment of a disinterested appraiser, arbitrator or umpire, any court of record except the court of appeals or the supreme court may be asked, and "the court shall make the appointment promptly" (Wis. Stat. §631.85).
Is an appraisal award binding in Wisconsin, and how is it enforced?
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.
What appraisal deadlines apply in Wisconsin?
Limitation period tolled during appraisal. An action on a fire insurance policy must be commenced within 12 months after the inception of the loss (Wis. Stat. §631.83(1)(a)), but the period of limitation is tolled while the parties conduct an appraisal or arbitration procedure prescribed by the policy or by law, or agreed to by the parties (§631.83(5)). The statute's annotations note that an agreement to appraise requires more than an agreement to meet and discuss the dispute.