The Texas Appraisal Clause Playbook
Texas treats the appraisal clause as a contractual right that survives even if the carrier marks your claim "closed." Once you invoke in writing, Texas carriers are bound by Tex. Ins. Code §542.060 (prompt-payment) and TDI Bulletin B-0045-04. to participate — Most Texas auto policies follow the TDI-approved form and contain a binding appraisal clause invokable by either party within a reasonable time.
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 have to file it, but having it prepared accelerates carrier responses.
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 the local court to appoint one.
Timeline expectations
Most 48-day timeline: 1–3 days for the carrier to acknowledge the demand, 7–10 days to name their appraiser, 5–10 days for both appraisers to exchange numbers, and 5–14 days for either an agreement or umpire selection. Payment usually clears within 30 days of the signed award.
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 — 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.
Two tactics that move Texas carriers fastest
- Document the request: send the demand by certified mail, retain the green card, and email a PDF copy to the adjuster the same day. Carriers regularly claim verbal invocations never happened.
- Refuse to discuss ACV verbally after invocation. All communications should be written and copied to your file. The appraisal process is contractually a paper exercise.
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.
- Walking away from the clause 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.
- Picking your own brother-in-law as your appraiser. The carrier will challenge non-independent appraisers, and umpires routinely give those reports little weight.
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
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.
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.
This letter is sent by certified mail with return receipt requested.
All further communications regarding ACV should be in writing.
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.