Step by Step Guide: Invoking the Total Loss Appraisal Clause

The appraisal clause in an auto insurance policy allows an insured driver to dispute the insurer’s total loss valuation by hiring an independent appraiser to determine the vehicle’s fair value.

Understanding the Appraisal Clause

When your car is declared a total loss, your insurance company assigns an Actual Cash Value (ACV)  what it believes your car was worth just before the loss. If you believe the offer is too low, the appraisal clause allows the insured (first party) to challenge the valuation.

Important: The appraisal clause applies only to first party claims. For third party claims (against the at fault driver’s insurer), the clause does not apply.

Florida Law on the Appraisal Clause

Review the statute and consumer resources:

• Florida Statute §627.7015 — Insurance claim dispute process (pre‑litigation): https://www.flsenate.gov/laws/statutes/2012/0627.7015

• Florida Department of Financial Services — Consumer Resources: https://www.myfloridacfo.com/Division/Consumers

Who Can Invoke the Total Loss Appraisal Clause

First party (your policy): Allowed to invoke before accepting payment.
Third party (other driver’s insurer): Not allowed , you may obtain an independent appraisal, but it is non binding.
After accepting payment: Not allowed  once payment is accepted, the clause cannot be invoked.

Step by Step: How to Invoke the Appraisal Clause

1. Review your insurance policy’s Appraisal section to confirm your rights and required steps.

2. Hire a certified, independent total loss appraiser (IACP, Florida licensed, I Car Platinum).

3. Notify your insurer in writing that you are invoking the appraisal clause. Keep copies of all correspondence.

4. Your insurer appoints their appraiser. Each appraiser independently values the vehicle using verified market comparables.

5. If the appraisers disagree, they select a neutral umpire. Any two who agree (including the umpire) make a binding decision.

6. Invoke appraisal before you accept or cash the settlement payment. After payment, you cannot dispute the valuation.

Real World Example: A Successful Appraisal Outcome

A client’s 2022 Lexus RX350 was declared a total loss. The insurer’s initial offer undervalued the vehicle by nearly $7,000. After invoking the appraisal clause, Auto Praise submitted an independent valuation with verified comparable sales and proper condition adjustments. Outcome: the client received an additional $6,800.

From My Experience

In my many years of handling vehicle claims, I’ve seen countless vehicle owners accept low payouts because they didn’t realize they had the right to challenge the insurer’s value. The appraisal clause is one of the most powerful tools available to policyholders  but it must be invoked before the claim is finalized. Once you accept payment, your options vanish. I recommend confirming eligibility early and engaging a certified, independent appraiser when the offer seems low.

Key Takeaways

• Applies only to first party claims (your own insurance).
• Must be invoked before accepting payment.
• Allows hiring an independent appraiser to challenge ACV.
• Governed by Florida’s pre litigation dispute process (§627.7015).
• Certified appraisers provide data driven, defensible valuations.

Read more from our other blog: Florida’s Total Loss Law Explained: Understanding the 80% Rule

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