The appraisal paragraph in a Wyoming homeowners or commercial policy is short — often under 200 words — and it rarely gets read until a claim goes sideways. Below is a reading of language that appears in many policies, phrase by phrase. Your form may be worded differently, especially if it is a surplus lines or farm policy, so put your own policy next to this guide.
“If you and we fail to agree on the amount of loss…”
This is the trigger, and the key word is amount. Appraisal decides what a covered loss costs to repair. It isn’t built to decide whether the loss is covered at all. When an adjuster says a slope wasn’t damaged by hail, is that a dispute about amount or about cause? Courts around the country have answered that differently, and it is one of the most argued points in appraisal.
“…either may demand appraisal of the loss.”
You or the insurer can start it, in writing. A good demand names the policy and claim number, says the parties disagree on the amount of loss, cites the appraisal provision and names your appraiser or says you will within the policy window.
“Each party will choose a competent and independent appraiser…”
Competent means qualified to value this kind of loss. Independent — or, in older forms, disinterested — means no stake in the outcome. That is why a contractor who will do the work, or an appraiser paid a share of the increase, can create problems for the award.
“…within 20 days after receiving a written request from the other.”
Twenty days is common but not universal. Calendar it the day the demand is sent or received. Our claim timeline builder can help.
“The two appraisers will choose an umpire.”
If they can’t agree within the policy window — frequently 15 days — either side can usually ask a court of record in the county where the property is to appoint one. In Wyoming, that is typically the district court.
“A decision agreed to by any two will set the amount of loss.”
This is what gives appraisal force. Once two of three sign, the amount is set. A weak, poorly documented valuation from your appraiser makes it easy for the umpire to sign with the other side.
“Each party will pay its own appraiser and bear the other expenses of the appraisal and umpire equally.”
Budget for both. On a small dispute, fees can swallow the increase, which is why we built the award net-gain projector.
What the clause usually doesn’t say
Most clauses are silent on how long appraisal can take, what happens to the deadline to sue while it is pending, and how depreciation should appear in the award. Those gaps are where experience matters. If coverage, delay or bad-faith issues are part of your situation, talk with a Wyoming-licensed attorney; appraisal won’t resolve them.