What the Maine appraisal clause is for
The Maine appraisal clause is the short paragraph in your property policy that gives you and the carrier a way out of a stalemate over money. It is not a Maine statute. It is contract language, and most carriers writing in Maine use some version of the standard homeowners form wording. Surplus lines carriers, which insure many older, vacant and oceanfront homes here, may use their own versions.
Because it is contract language, the exact words in your policy control. What follows is a plain reading of the typical clause, sentence by sentence, with the questions worth asking at each step. Keep your own policy open while you read, and ask a Maine attorney about anything that affects a deadline or your legal rights.
Sentence one: the trigger
Most clauses open with something like: if you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. Three ideas sit in that sentence.
- Fail to agree means there must be a real disagreement, usually shown by competing estimates and some back and forth.
- Amount of loss limits appraisal to value, not coverage.
- Either may demand means the carrier can invoke it too, not just you.
Some versions add that the demand must be in writing. Even when it is not required, a written demand is the safer choice.
Sentence two: choosing appraisers
The next sentence usually says each party will choose a competent and disinterested appraiser within 20 days after receiving a written request from the other. That is the wording in many policies, but some use different windows.
What competent and disinterested mean
Competent means the appraiser understands construction, estimating and the kind of damage involved. Disinterested means no financial stake in the result beyond an agreed fee and no relationship that would bias them. Courts in various states have looked at contingency fees and prior relationships when deciding whether an appraiser was truly disinterested, so ask any appraiser you consider how they charge and whether they have worked on your property before.
Sentence three: the umpire
Next, the two appraisers choose an umpire. If they cannot agree within a set time, often 15 days, many policies allow either party to request that a judge of a court of record in the state where the property is located select one. In Maine, that request would generally go to the Superior Court, and an attorney should handle it.
The 20-day and 15-day windows in many policies run from specific events, such as receipt of the written demand. Write down the date each step happens. Our claim date tracker can export those dates to your calendar.
Sentence four: the award
The clause then explains that the appraisers will separately set the amount of loss. If they submit a written report of an agreement, that amount becomes the amount of loss. If they fail to agree, they submit their differences to the umpire, and a decision agreed to by any two will set the amount of loss.
Why the award format matters
Many policies ask the panel to state both replacement cost and actual cash value. If your policy pays actual cash value first, the difference is the depreciation holdback you can recover after repairs. A clear award that breaks out these figures by line or category makes payment easier and leaves less room for later disputes. Use our RCV, ACV and holdback calculator to see how the pieces fit.
Sentence five: fees and the fine print
Most clauses close by saying each party pays its own appraiser and the parties share the umpire’s fee and other appraisal expenses equally. Some policies add one more sentence that matters a great deal: that the carrier keeps its right to deny the claim even after an appraisal.
That line reflects a basic rule of appraisal. The panel decides how much, not whether. If coverage is still in question, the award does not settle it. Bad faith claims under Maine’s Unfair Claims Settlement Practices statute, 24-A M.R.S. § 2436-A, also sit outside the panel’s job and belong with an attorney.
Putting the Maine appraisal clause to work
Reading the Maine appraisal clause carefully before you act saves time later. Confirm the claim is accepted, list the disputed items, note every deadline and choose an appraiser who is both competent and disinterested. If you want help deciding whether your file is ready, our party appraiser representation page explains how we work on the insured’s side of the panel.
Illustrative example: a condo association in Scarborough receives a carrier estimate of $48,000 for wind damage to a building’s siding and trim, against a contractor figure of $86,000. The board sends a written demand, names its appraiser within the policy window, and the two appraisers agree on most items. The umpire decides four remaining line items. These figures are illustrative only, but they show how the clause channels a large gap into a short list of disputed items.