The Texas Appraisal Clause Playbook
Texas treats the appraisal clause as a contractual right that survives even after a carrier closes your file. Once you invoke in writing from anywhere in the state — Houston included — the carrier is bound by Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04. to participate. Most standard Texas auto policies include a binding appraisal clause — check the Loss Settlement or Conditions section of your policy. If the carrier stalls past ten business days, the Texas Department of Insurance (1-800-252-3439) logs the delay as an unfair-claims data point.
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 Texas, keep a parallel copy ready for the Department of Insurance (1-800-252-3439); you do not file it on day one, but having it ready accelerates the carrier's response under Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04..
Umpire selection in Texas
If the two appraisers cannot agree on ACV, they jointly select a neutral umpire — usually a senior independent appraiser, a retired adjuster, or a licensed dealer. In Texas, most umpires are selected by mutual agreement within 7–14 days; if not, either side can petition a Texas court of competent jurisdiction to appoint one. The Houston regional pool of qualified umpires is deep, which keeps fees competitive.
Timeline expectations
Most Texas files run 48 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. Houston-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 Texas — 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 Texas carriers fastest
- Pull your own comp set before the demand goes out. Knowing local dealer asking prices means you can immediately push back on the carrier's first appraiser position.
- Request a copy of the actual comparable vehicle window stickers cited in the valuation, not just the line items. Most reports cite trims and options that the comps do not actually have.
- If the umpire is undecided, supply a clean PDF binder: window sticker, prior-damage clearance, three comps, your appraiser's signed report. Binders win the gray-area decisions.
Three pitfalls that void or weaken the clause in Texas
- Skipping certified mail. A demand sent by regular mail or email-only is a demand a carrier can later claim it never received.
- Surrendering the vehicle before photographing every option, panel, and the odometer. Salvage yards strip vehicles within days.
- Calling the appraisal demand a "complaint" or "dispute." Use the exact phrase "I am invoking the appraisal provision of my policy" so the file routes correctly.
Texas 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 Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04..
[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: Houston, TX
Governing authority: Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04.
Regulator: Texas Department of Insurance (1-800-252-3439)
To Whom It May Concern:
Pursuant to the appraisal provision of the auto policy referenced above,
and consistent with Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04., I am hereby invoking the appraisal
clause to determine the actual cash value of my totaled vehicle. Most standard Texas 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 Texas practice, the resulting ACV shall include the statutory
sales tax and title/registration fees that form part of actual cash value
in this state (Texas insurers must include 6.25% state sales tax plus title fees in the total-loss settlement (TDI Bulletin B-0045-04).). Salvage retention, if elected, is
governed by Texas uses a 100%-of-ACV total-loss formula — declared total 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 Texas DOI file at 1-800-252-3439
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 Texas.