In a report dated December 2024, the Texas Department of Insurance (TDI) published the results of its 2024 Appraisal Experience Data Call. TDI gathered the data because, as the report notes, insurers do not routinely collect appraisal data and little public information existed on how and when appraisal is used. Nearly two years later, TDI leaned on the same findings when it adopted 28 TAC §§5.9800 to 5.9806, the rules that govern appraisal under Texas personal auto and residential property policies delivered, issued for delivery, or renewed on or after March 1, 2027 (covered in our homeowners and auto articles).
The data cover claims reported from July 2020 to June 2023. They show a dispute tool that was rare but growing in residential claims, that almost always produced more than the insurer first offered, and that took far longer when an umpire was used. Every chart below is built from figures printed in the report, and page numbers refer to its printed pages. In the text and tables, the first, second, and third year mean claims reported from July 2020 to June 2021, July 2021 to June 2022, and July 2022 to June 2023.
Key numbers
| Measure | Residential property | Personal auto | Report page |
|---|---|---|---|
| Appraisals demanded, first to third year | 4,909, 4,581, then 7,726 | 423, 460, then 483 | 10 |
| Share of payable claims with an appraisal | 1.18%, rising to 2.30% | Under 0.02% each year | 10 |
| Demanded by the claimant | 98.6% | 93.8% | 10 |
| Median award | $23,983 | $21,646 | 11 |
| Awards above the insurer's initial offer | About 97% | About 98% | 11 |
| Median gap between award and initial offer | $18,127 | $3,571 | 11 to 12 |
| Umpire used | About 16% of completed appraisals | About 7% of completed appraisals | 11 |
| Median days from claim to demand | 101 | 37 | 13 |
| Median days from demand to award | 85 | 22 | 13 |
| Average insurer expense per appraisal | $2,840, about 8% of the average award | $567, about 2% of the average award | 15 to 16 |
| Completed appraisals followed by a lawsuit | 10.9% in the first year, 0.9% in the third | 1.5% in the first year, 1.1% in the third (13 in all) | 17 |
What the data cover
TDI sent the data call on April 12, 2024, to the top 10 homeowners multi-peril groups and the top 10 private passenger auto groups in its 2023 market report, asking each to report both lines for first-party claims reported in three 12-month periods from July 2020 to June 2023. The two lists overlap, so 13 groups were asked; the results come from 12 of them, representing about 69% of the Texas residential property market and 83% of the personal auto market. Several features of the data shape how to read them:
- Residential means homeowners, condominium, and dwelling fire. Renters policies and other policies that cover only contents were not included.
- Two groups dominate the residential results. Over 80% of the residential appraisals came from two insurer groups.
- One group's data were left out. It reported only a limited set of appraisals and did not provide most of the requested information for them.
- Claim-level figures cover completed appraisals. Award amounts, offer comparisons, timing, length, and expense come from claim-level data on the appraisals completed by the time insurers reported: 15,718 of the 17,216 residential and 1,277 of the 1,366 auto appraisals demanded. Appraisals with missing data were also excluded from some analyses, so averages can differ slightly from table to table.
- Counts reflect what insurers knew in 2024. Information had to be current through at least April 12, 2024, so the newest claims had the least time to develop.
- Injury claims are outside the data. The call covered first-party property damage claims only, not bodily injury or PIP claims.
How often appraisal is used
Appraisal was rare. Across the three years, it was used in less than 2% of payable residential property claims (claims paid or carrying an outstanding reserve) and in fewer than 2 of every 10,000 payable personal auto claims. Residential use rose, though. Appraisals demanded as a share of payable claims went from 1.18% in the first year to 1.79% in the second and 2.30% in the third.
Exhibit 1
The share of payable residential claims with an appraisal nearly doubled
Appraisals demanded as a share of payable residential property claims, by year the claim was reported
Source: TDI, 2024 Appraisal Experience Data Call Report, p. 10. Payable claims are claims paid or with an outstanding reserve (p. 32).
The path was uneven. Residential appraisals demanded dipped from 4,909 in the first year to 4,581 in the second, so the second-year rise in the share came from payable claims falling 39%, from 416,405 to 255,379. In the third year, appraisals jumped 69% to 7,726, while payable claims recovered only to 336,205. Over the three years, appraisals rose 57% and payable claims fell 19%, which is why the share nearly doubled. The report does not explain the increase. Personal auto appraisals rose only modestly, from 423 to 483 a year, against roughly 2.4 million to 2.6 million payable claims.
Claimants, meaning the policyholders making the claims, demanded almost every appraisal: 98.6% of residential appraisals over the three years and 93.8% of personal auto appraisals. Insurer demands were few, but in auto they rose from 15 on claims reported in the first year to 47 in the third, and almost half of the insurer-demanded auto appraisals came from one insurer group.
What appraisal awards looked like
The median residential award was $23,983 and the average $33,949. The median personal auto award was $21,646 and the average $29,541. Most personal auto appraisals involved vehicles declared a total loss.
Nearly every award exceeded the insurer's initial offer: about 97% of residential awards and about 98% of auto awards. That comparison is with the first offer only. The data call did not ask for any later offer, and although it collected each claimant's initial demand or counteroffer, the report does not compare awards with what claimants asked for.
The size of the move differed sharply by line. In the report's offer comparison, residential appraisals went from an average initial offer of $11,364 to an average award of $33,970, about three times the offer, while auto appraisals went from $24,199 to $29,451, about 22% more. These averages differ slightly from the overall averages above ($33,970 against $33,949 for residential, $29,451 against $29,541 for auto), likely because the report excluded appraisals with missing data from some analyses.
Exhibit 2
Residential awards ended far above the initial offer; auto awards stayed much closer
Average initial offer and average award in the report's offer comparison
Source: TDI, 2024 Appraisal Experience Data Call Report, pp. 11 to 12 (average initial offer vs. award).
On average, awards exceeded the initial offer by $22,606 for residential appraisals and $5,252 for auto. The median gap was smaller, $18,127 for residential and $3,571 for auto, so the median describes a typical case better. The middle half of residential awards (25th to 75th percentile) came in $10,820 to $28,474 above the initial offer, and the middle half of auto awards $2,148 to $5,935 above it.
An umpire was used in about 16% of completed residential appraisals and about 7% of completed auto appraisals, and those appraisals typically ended further above the initial offer. For residential claims, the middle half of umpire appraisals ended $12,145 to $37,785 above the initial offer, against $10,649 to $27,053 without an umpire. For auto claims, the same ranges were $3,071 to $10,439 with an umpire and $2,080 to $5,747 without. The report shows the wider gap with an umpire but does not explain it.
Exhibit 3
Appraisals with an umpire typically ended further above the initial offer
Amount the award exceeded the insurer's initial offer, 25th to 75th percentile
Source: TDI, 2024 Appraisal Experience Data Call Report, pp. 11 to 12.
When appraisal was demanded
Most demands came well within a year of the claim. For residential claims, 25% of completed appraisals had been demanded within 54 days after the claim was reported, 50% within 101 days, 75% within 191 days, and 90% within 328 days. Auto demands came faster: 22, 37, 69, and 118 days at the same points.
Exhibit 4
Auto appraisals were demanded sooner than residential ones
Days from the claim being reported to the appraisal demand, 25th to 75th percentile
Source: TDI, 2024 Appraisal Experience Data Call Report, p. 13. Completed appraisals.
The same data figured on both sides of the demand-deadline debate. TDI's proposed rules would have required a demand within one year (residential) or 120 days (auto) after the insurer's notice accepting or rejecting the claim, deadlines TDI said were based on this report. In response to comments, the adopted rules instead tie the deadline to the policy's limitations period for filing suit, with separate rules once a lawsuit is filed or, for residential claims, a pre-suit notice is given. TDI said the change should reduce complexity and deadline gamesmanship, and that the report's data suggest a one-year or 120-day deadline is not necessary to prompt most parties to demand appraisal without undue delay. The report measures from when the claim was reported, so its figures are not directly comparable with deadlines that would have run from the insurer's claim decision.
How long appraisal took
Across all completed appraisals, the median residential appraisal took 85 days from demand to award, and almost 90% were done within eight months. The median auto appraisal took 22 days, and over 90% were done within four months.
The median residential appraisal took 193 days with an umpire and 74 days without one; for auto, the medians were 114 days and 21 days. The middle half of residential umpire appraisals took 130 to 278 days, against 47 to 119 days without an umpire. For auto, the middle half ran 59 to 210 days with an umpire and 11 to 39 days without. The data compare whole appraisals with and without an umpire, so they do not show which stage the extra time came from.
Exhibit 5
Appraisals with an umpire took far longer
Days from demand to award, 25th to 75th percentile
Source: TDI, 2024 Appraisal Experience Data Call Report, p. 13. Completed appraisals.
Large residential losses also took longer. The median length was 77 to 107 days in every award band up to $100,000, but 150 days for the 622 appraisals with awards over $100,000. Auto appraisal length did not vary much by award amount.
| Residential award | Median days from demand to award | Appraisals |
|---|---|---|
| $0 to $10,000 | 103 | 1,518 |
| $10,000 to $20,000 | 78 | 4,173 |
| $20,000 to $30,000 | 77 | 3,900 |
| $30,000 to $40,000 | 82 | 2,186 |
| $40,000 to $50,000 | 86 | 1,196 |
| $50,000 to $100,000 | 107 | 1,492 |
| Over $100,000 | 150 | 622 |
Against the new deadlines
The adopted rules give the appraisers 120 days from the demand (residential) or 40 days (auto) to try to agree. When an umpire is involved, the award is due within 240 days (residential) or 180 days (auto) of the demand; if it is not issued by then, the umpire's engagement ends and the appraisers must choose a new umpire within 15 days. The parties can change any of these deadlines by written agreement once the insurer has sent its appraisal process notice. Measured against the report's data:
- Most appraisals without an umpire fit the agreement windows. 75% of residential appraisals without an umpire ended within 119 days, and 75% of auto appraisals without one within 39 days.
- Appraisals with an umpire often ran past the award deadlines. A quarter of residential umpire appraisals took longer than 278 days and a quarter of auto umpire appraisals longer than 210 days, so at least a quarter ran past the 240-day and 180-day deadlines. At least half finished within them (medians of 193 and 114 days), and TDI read the data as showing that most umpire appraisals are likely to finish in time.
- More appraisals may reach the umpire stage under the rules. Appraisers who cannot agree within the window must involve an umpire unless the parties agree in writing to more time. Across all completed appraisals, a quarter took longer than 149 days for residential and 45 days for auto, so at least a quarter ran past day 120 and day 40, more than the 16% and 7% that used an umpire before the rules.
What appraisal cost insurers
The report describes the usual arrangement: "Each side pays its own appraiser and half of any other appraisal expenses, including the umpire." Insurers' average appraisal expense, which includes paying their own appraiser and their share of any umpire fees, was $2,840 per residential appraisal and $567 per auto appraisal. It averaged $4,110 for residential appraisals with an umpire and $2,589 without one; for auto, $893 with an umpire and $540 without. Average insurer expense was about 8% of the average award for residential appraisals and about 2% for auto.
Exhibit 6
Insurers' average cost per appraisal was higher when an umpire was used
Average insurer expense per completed appraisal, including its share of any umpire fees
Source: TDI, 2024 Appraisal Experience Data Call Report, p. 15.
The report prints no figure for what claimants spent. The data call asked insurers only for the claimant expenses they knew about.
Appraisal and litigation
Residential appraisal and litigation seldom overlapped, and the overlap shrank. A lawsuit came before 3.5% of the residential appraisals demanded on claims reported in the first year, 1.2% in the second, and 0.4% in the third. A lawsuit followed 10.9% of completed residential appraisals on claims reported in the first year, 4.4% in the second, and 0.9% in the third. Claimants filed most of these suits, but insurers filed 46 of the 258 that came before an appraisal. Read the decline with the reporting date in mind: insurers counted lawsuits as of their 2024 responses, so the most recent claims had the least time for a suit to be filed.
Exhibit 7
Lawsuits after residential appraisals were less common on newer claims
Share of completed residential appraisals followed by a lawsuit, by year the claim was reported, as counted in 2024
Source: TDI, 2024 Appraisal Experience Data Call Report, p. 17. Counts are as of insurers' 2024 responses (pp. 9, 32).
Personal auto appraisal was rarely tied to a lawsuit: one auto appraisal was preceded by a lawsuit and 13 were followed by one over the three years.
What the findings mean under the adopted rules
- Appraisal has mostly been a policyholder's tool. With claimants demanding 98.6% of residential and 93.8% of auto appraisals, the deadline to demand appraisal is likely to fall mostly on policyholders. The later deadlines apply whoever made the demand, starting with the 20-day deadline for each party to hire an appraiser; our homeowners and auto articles walk through each one.
- Appraisals with an umpire took far longer. At the median, they took more than twice as long as appraisals without an umpire for residential claims and more than five times as long for auto, and at least a quarter ran past the new award deadlines. Parties who expect to need an umpire should put any extension in writing early; the rules allow that once the insurer has sent its appraisal process notice, which goes out with its notice accepting or rejecting the claim.
- Large residential losses need a plan. With a 150-day median for awards over $100,000, at least half of those appraisals ran past day 120, the point at which the rules will require the appraisers to involve an umpire unless the parties agree in writing to more time.
- The numbers predate the rules. The data cover claims reported before the rules' March 1, 2027 compliance date, under the appraisal clauses then in use. TDI's adoption order notes that those clauses differed (many personal auto clauses, for example, set no deadline to name an appraiser or choose an umpire), so the rules themselves may change how often appraisal is used and how long it takes.
Sources
Frequently asked questions
How often is appraisal used in Texas home insurance claims?
Across the three years in TDI's 2024 data call, appraisal was used in less than 2% of payable residential property claims, but the rate nearly doubled, from 1.18% for claims reported from July 2020 to June 2021 to 2.30% for claims reported from July 2022 to June 2023. For personal auto, appraisal was used in fewer than 2 of every 10,000 payable claims.
Do appraisal awards usually come in above the insurer's initial offer in Texas?
Yes. About 97% of residential property awards and 98% of personal auto awards were higher than the insurer's initial offer. The median gap between the award and the initial offer was $18,127 for residential claims and $3,571 for auto claims. The report compares awards only with the first offer, not with any later offer.
How long does an insurance appraisal take in Texas?
In TDI's data, the median residential appraisal took 85 days from the demand to the award, and the median auto appraisal took 22 days. Appraisals with an umpire took much longer, with medians of 193 days for residential and 114 days for auto.
How often is an umpire needed in a Texas insurance appraisal?
An umpire was used in about 16% of completed residential property appraisals and about 7% of completed personal auto appraisals in TDI's data call, which covered claims reported from July 2020 to June 2023.
Who usually demands appraisal in Texas insurance claims?
Claimants, meaning the policyholders making the claims. In TDI's data, claimants demanded 98.6% of residential property appraisals and 93.8% of personal auto appraisals. Insurer demands were rare, though insurer-demanded auto appraisals rose from 15 to 47 a year over the three years studied.
How much does appraisal cost insurers in Texas?
Insurers' average appraisal expense, including their share of any umpire fees, was $2,840 for a residential property appraisal and $567 for a personal auto appraisal, about 8% and 2% of the average award. It was higher when an umpire was used. TDI's report gives no figure for what claimants spent.