What Happens if My Insurer and I Disagree on the Amount of a Fire Loss?
Under the New York standard fire insurance policy, a disagreement over the amount of loss can go to appraisal: each side appoints an appraiser and the appraisers select an umpire. Insurance Law § 3408 provides the backstop when they cannot agree on an umpire — an application can be made to a Supreme Court justice residing in, or a county judge of, the county where the damaged property is or was located, on five days' written notice to the other party, and the court will appoint a competent, disinterested umpire. When the insured serves that notice, it may be served on any local agent of the insurer.
Key Points
- Appraisal decides the amount of loss, not whether the loss is covered.
- Each party appoints an appraiser; the appraisers pick an umpire.
- If they cannot agree on an umpire, § 3408 lets a court appoint one.
- Application goes to a Supreme Court justice residing in, or a county judge of, the county where the property is or was located.
- Five days' written notice to the other party is required; the insured may serve it on any local agent of the insurer.
- Proof by affidavit of the appraisers' failure to agree and of proper service is what the court acts on.
When appraisal is the right tool
Appraisal fits the most common New York property dispute: coverage is not really in question, but the carrier's number is far below the true cost of repair. It is generally faster and less expensive than litigation, and it is decided by people who estimate construction for a living.
It is the wrong tool when the real fight is coverage — a denial based on an exclusion, a late-notice defense, a fraud allegation. Those are legal questions an appraisal panel does not decide.
How the umpire process works in practice
Both appraisers inspect and value the loss. Where they agree, that agreement sets the amount. Where they do not, the umpire breaks the deadlock. Because the umpire often decides the outcome, who serves in that role matters — which is exactly why § 3408 provides a neutral court appointment when the appraisers deadlock on the choice.
The application is made on five days' written notice, supported by an affidavit proving the appraisers failed or neglected to agree on an umpire within the time the policy allows and that notice was served. Read your own policy's appraisal clause for the timing and mechanics that apply to you, and get advice before invoking appraisal — it can bind you to a number.
Official text and citation
This page is a plain-English summary written for policyholders. The controlling language is the official text of N.Y. Insurance Law § 3408, and your own policy governs your claim. Nothing here is legal advice.
Read Insurance Law § 3408 (official text)Fire Insurance Appraisal & Umpire: Frequently Asked Questions
Common questions New York policyholders ask about this rule.