The Colorado Appraisal Clause Playbook
Colorado courts consistently enforce the auto-policy appraisal clause as written: a written demand triggers a two-appraiser process, and if the appraisers disagree, a neutral umpire decides ACV. Most standard Colorado auto policies include a binding appraisal clause — check the Loss Settlement or Conditions section of your policy. The relevant rule is 3 CCR 702-5 §1-1-3 (Unfair Claims Practices).; complaints about non-compliance route to the Colorado DOI at 1-303-894-7499. From Denver to the rural counties, the procedure is identical.
Where to send the demand
Send the written demand by certified mail with return receipt to the claims address on your declarations page. Cc the adjuster by email so there is a same-day timestamp. In Colorado, keep a parallel copy ready for the Department of Insurance (1-303-894-7499); you do not file it on day one, but having it ready accelerates the carrier's response under 3 CCR 702-5 §1-1-3 (Unfair Claims Practices)..
Umpire selection in Colorado
Umpire selection in Colorado is typically a phone call between the two appraisers from a short list of mutually-trusted names. Court appointment is rare and reserved for cases where one side refuses to cooperate. Denver-based umpires charge $400–$700 for a single-vehicle ACV decision; outside-metro umpires sometimes bill mileage on top.
Timeline expectations
Most Colorado files run 32 days end-to-end: 1–3 days for the carrier to acknowledge, 7–10 days to name their appraiser, 5–10 days for both appraisers to exchange numbers, 5–14 days for either an agreement or umpire selection, and a settlement check within 30 days of the signed award. Denver-area files trend a few days faster because most independent appraisers are local.
Who pays what
You pay your own appraiser. The carrier pays its appraiser. The umpire's fee — typically $400–$900 for a single-vehicle ACV decision in Colorado — is split 50/50. Independent appraiser fees range $300–$600. Auto ACV's $1,000 minimum recovery guarantee means if we cannot beat the carrier's offer by at least $1,000, you owe us nothing.
Three tactics that move Colorado carriers fastest
- Name your appraiser in the same letter that invokes the clause. This compresses 5–10 days of back-and-forth into one mailing.
- Photograph the odometer, VIN plate, window sticker (if you have it), and every option in the cabin and trunk before you surrender the vehicle. Lost photos cannot be re-taken.
- Insist on prior-damage history through the carrier's CARFAX/AutoCheck — and challenge any deduction unsupported by a documented prior loss.
Three pitfalls that void or weaken the clause in Colorado
- Picking your own brother-in-law as your appraiser. The carrier will challenge non-independent appraisers, and umpires routinely give those reports little weight.
- Walking away because the adjuster says "that's not how we do it." Adjusters say that on roughly half of all first invocations; the policy still controls.
- Missing the policy's appraisal-demand deadline. Most carriers do not impose one, but a few do — read the policy form before you wait.
Colorado appraisal-clause demand letter (copy-ready)
Replace bracketed fields with your claim details. Send certified mail with return receipt to the claims address on your declarations page. Cites 3 CCR 702-5 §1-1-3 (Unfair Claims Practices)..
[Date]
[Carrier name]
[Claims address from your declarations page]
Re: Claim No. [your claim number]
Policy No. [your policy number]
Insured: [your name]
Loss date: [date]
Loss location: Denver, CO
Governing authority: 3 CCR 702-5 §1-1-3 (Unfair Claims Practices).
Regulator: Colorado Department of Insurance (1-303-894-7499)
To Whom It May Concern:
Pursuant to the appraisal provision of the auto policy referenced above,
and consistent with 3 CCR 702-5 §1-1-3 (Unfair Claims Practices)., I am hereby invoking the appraisal
clause to determine the actual cash value of my totaled vehicle. Most standard Colorado auto policies include a binding appraisal clause — check the Loss Settlement or Conditions section of your policy.
I have appointed [appraiser name, license, contact] as my appraiser.
Please identify your appraiser within ten (10) business days of receipt
of this letter so that the appraisal may proceed. If the two appraisers
cannot agree, they shall jointly select a competent and disinterested
umpire as the policy provides.
Per Colorado practice, the resulting ACV shall include the statutory
sales tax and title/registration fees that form part of actual cash value
in this state (Insurers must include state and local sales/use tax plus title fees in the settlement.). Salvage retention, if elected, is
governed by Colorado uses a 100%-of-ACV threshold — total loss is declared when damage equals or exceeds ACV.
This letter is sent by certified mail with return receipt requested. All
further communications regarding ACV should be in writing. A copy of this
letter will be retained for the Colorado DOI file at 1-303-894-7499
if the carrier does not acknowledge within ten business days.
Sincerely,
[Your name]
[Address, phone, email]This template is a starting point, not legal advice. We'll send a tailored demand on your behalf as part of every Auto ACV engagement in Colorado.