How appraisal works on a New Mexico property claim
Appraisal is a short paragraph in most homeowners, commercial and HOA property policies that gives you and your insurer a way to settle one narrow question without a lawsuit: how much the covered damage is worth. It is not a complaint process and it is not a trial. Two appraisers, and an umpire if they need one, measure, price and agree on a number. Below is how that usually unfolds, from a hail-pocked flat roof in Albuquerque to a smoke-damaged cabin near Ruidoso. Your policy’s wording controls, so read it alongside this page.
Step 1: Pin down the disagreement
Appraisal starts with a claim the carrier has at least partly accepted. It has inspected and written an estimate, and you or your contractor think that estimate leaves money on the table. Before you invoke anything, get specific about where the gap is.
- Put the carrier’s estimate next to your contractor’s, section by section.
- Mark the items that are missing entirely, such as parapet caps, canales, cooler stands or stucco on an elevation the adjuster didn’t walk.
- Mark the items that are present but priced or measured differently.
- Write a short supplement request and give the adjuster a fair chance to respond. Plenty of gaps close here.
Our claim gap and net recovery estimator helps you see whether the difference is large enough to justify appraisal once fees and your deductible are counted.
Step 2: Read the clause and send the demand
Find the appraisal paragraph, usually under “Conditions” or “Section I Conditions.” Note who may demand appraisal, how many days each side has to name an appraiser, how the umpire is chosen and who pays what. Some policies add conditions, such as a sworn proof of loss or a statement of the amount in dispute.
The demand itself should be in writing and should identify the policy, claim number and loss date, say plainly that the parties disagree on the amount of loss, cite the appraisal provision and name your appraiser or commit to naming one within the policy’s window. Send it by a method you can prove, such as certified mail plus email. If you would like help drafting it, see appraisal demand representation.
Step 3: Name your appraiser
Most policies require each appraiser to be “competent and disinterested.” Competent means the person can actually value this kind of loss: modified bitumen and elastomeric coatings, three-coat stucco, adobe walls, or a commercial roof system with tapered insulation. Disinterested means no financial stake in the outcome, which is why your roofing contractor is usually not the right pick.
- Ask how the appraiser is paid and get the fee arrangement in writing.
- Ask about experience with the specific peril, whether hail, wind, fire or freeze.
- Confirm the appraiser has no business relationship with your carrier or your contractor.
Step 4: Select the umpire
The two appraisers pick a neutral umpire, ideally early so one is ready if needed. A good umpire knows construction pricing and has no tie to either side. If the appraisers can’t agree within the time the policy allows, the clause usually lets either party ask a court to appoint one, typically a district court in the county where the property sits. New Mexico has 33 counties, and the policy, not the county, governs the procedure. We also serve as a neutral; see umpire services.
Step 5: Inspect, measure and price
Each appraiser reviews the file, then inspects the property, often together. On a typical New Mexico house that means walking the roof field and the parapet walls, checking scuppers and canales, testing stucco for fractures, opening the evaporative cooler cabinet, and documenting interior water staining. Measurements are confirmed, pitch is recorded, and the scope is written in line items, commonly in Xactimate, using current local pricing.
The roof area and pitch converter is useful for checking square counts before the appraisers meet.
Step 6: Work the differences line by line
Here the appraisers compare estimates and resolve what they can. Most of the real work, and most of the money, is decided in this stage. Many appraisals end with both appraisers signing an agreed award and the umpire never deciding anything.
Items the appraisers can’t settle go to the umpire. Each appraiser submits a position with photos, measurements and pricing. The umpire may inspect, ask questions or hold an informal meeting, then decides each disputed item.
Step 7: Sign the award and collect
An award signed by any two of the three panel members sets the amount of loss. A clear award separates replacement cost, depreciation and actual cash value, and lists items by coverage (dwelling, other structures, contents). The carrier then pays according to the policy, less your deductible and any prior payments. Recoverable depreciation is typically released after repairs, so watch your policy’s repair deadline. The depreciation holdback splitter shows how an award usually breaks into payments.
What appraisal can’t decide
- Whether a loss is covered in the first place. Appraisal decides amount of loss, not coverage.
- Whether the carrier acted in bad faith or broke the unfair claims practices rules in the New Mexico Insurance Code.
- Policy interpretation questions, such as whether an exclusion applies.
For those, talk with a New Mexico attorney. You can also file a consumer complaint with the New Mexico Office of Superintendent of Insurance. Our role is valuation.
What appraisal costs
Each side usually pays its own appraiser, and umpire fees are usually split equally. Fee structures vary: hourly, flat or a percentage. Ask every appraiser, including us, to put the arrangement in writing before you sign anything. Weigh the expected gain against fees and your deductible before you begin.
How long it takes
A straightforward residential roof appraisal can wrap up in a few weeks once both appraisers are named. Large wildfire, commercial or HOA losses with contents and code upgrade questions can take months. Delays usually come from slow appointments, missing documents or umpire selection. The claim calendar builder helps you track the dates in your own policy, and you can contact us to talk through your file.