State Farm Said $499.50. The Roofer Said $13,000. The Appraisal Clause Settled It.
When the adjuster and the roofer can't agree on a hail roof, most homeowner policies already contain a way out: appraisal. Here's how the clause works, what Colorado and Texas courts say appraisers can decide, what it costs, and what a roofer can and can't do inside it.
In April 2003 a hailstorm hit a house in Plano. The carrier's inspector found damage on the ridgeline only and wrote it up at $499.50, under the $1,477 deductible. The homeowner's roofer said the whole roof was gone, at over $13,000.
That gap is the most common fight in storm roofing. Instead of suing, the homeowner invoked the appraisal clause in the policy, the carrier refused, and the case went to the Texas Supreme Court. In State Farm Lloyds v. Johnson (2009), the court ordered the appraisal to go ahead.
Every roofer who works hail will lose an adjuster meeting eventually. Here's what happens next, and where you fit in it.
What the appraisal clause is
Most homeowner policy forms in Colorado and Texas contain a short paragraph that reads roughly the same:
- Either side can demand appraisal if they disagree on the amount of loss.
- Each side hires its own appraiser.
- The two appraisers pick an umpire.
- The appraisers try to agree. Anything they can't agree on goes to the umpire.
- A written award signed by any two of the three sets the amount.
- Each side pays its own appraiser and they split the umpire.
It's not a lawsuit and it's not arbitration of the whole claim. It answers one question: how much is the loss? It does not answer whether the policy covers it. If the carrier says "wear and tear, not covered," that's a coverage fight, and appraisal alone won't settle it.
The fight inside the fight: can appraisers decide what caused the damage?
Here's the catch on hail roofs. Almost every disputed hail claim is really a causation dispute. The adjuster says the bruises are blistering, foot traffic or old age. The roofer says they're hail. If appraisers can't touch causation, appraisal is nearly useless for roofs.
Both states have answered this, and the answer favors getting it in front of the panel.
Texas. In Johnson, the court said any appraisal "necessarily includes some causation element." Appraisers can separate damage from the covered storm from damage caused by everything else. What they can't do is rule on coverage itself.
Colorado. In BonBeck Parker v. Travelers (10th Circuit, 2021, applying Colorado law), the carrier tried to keep causation off the table on a hail claim from a 2012 storm. The court held that "amount of loss" plainly includes causation disputes. Colorado district courts have read it the same way.
Worth knowing: a 2026 Colorado bill, HB26-1247, would have written a mandatory appraisal process into every homeowner policy, with a four-month deadline after the umpire is picked. It died in committee in March. For now, the policy language is the rule.
What it costs, and when it's worth it
Appraisal isn't free. Each side pays its appraiser, and the umpire is split. Example numbers for a residential roof, since quotes vary a lot by market and appraiser:
| Homeowner pays | |
|---|---|
| Homeowner's appraiser | $1,500 to $3,000 |
| Half the umpire (if needed) | $500 to $1,500 |
| Total | $2,000 to $4,500 |
Some appraisers work for a percentage of the award instead. Read that agreement before the homeowner signs it.
Now run the Johnson gap: $499.50 against $13,000-plus. Net of the deductible, the homeowner is fighting for roughly $11,500. Spending $3,000 to recover it is easy math.
Run a thinner one. Carrier says $9,000, roofer says $12,000. Fighting for $3,000 with $2,000 to $4,500 in costs is a coin flip at best. Supplement it, document it, and ask for a reinspection first. Appraisal is for big gaps, usually the "repair a few squares" versus "replace the roof" kind.
A rough rule: when the gap is less than about 3x what appraisal will cost, try a reinspection with better documentation first.
What the roofer can and can't do
This is where roofers get in trouble.
Texas. Insurance Code §4102.163 says a contractor can't act as a public adjuster, or advertise to adjust claims, on any property where they're providing or may provide the roofing work. A license or a power of attorney from the homeowner doesn't change that. In practice, a roofer with a signed contract on the house is a bad choice as the homeowner's appraiser: most policy forms require the appraiser to be competent and independent or disinterested, and your contract depends on the number.
Colorado. C.R.S. 6-22-105 says a roofing contractor can't claim to be or act as a public adjuster. It does let you discuss the scope of repairs with the carrier on the owner's behalf once you have a valid contract. Same practical result: you can be the expert in the room, but not the homeowner's advocate on the panel.
What you can do in both states:
- Build the file. Photos of every slope, chalked test squares, collateral damage on gutters, vents and soft metals, and the date of the storm.
- Write a line-item estimate. In the format the appraisers will use, with code items like ice and water shield and drip edge called out.
- Give the homeowner a list of independent appraisers. Not one name, a list, and let them choose.
- Show up when asked. Appraisers will want to walk the roof with someone who knows it.
None of this is legal advice. Policy wording differs by carrier and form, so read the appraisal paragraph with the homeowner before anyone demands it.
Why the lead matters more than the fight
Appraisal rescues claims the adjuster got wrong. It doesn't rescue claims that were weak from the start. If the panel looks at a 22-year-old roof under stones that were three-quarters of an inch at the address, the umpire is going to side with the adjuster, and the homeowner is out $3,000.
The cases that win share two facts: hail big enough to damage that kind of shingle, and a roof young enough that the damage isn't buried under age. That's the same pair that decides what size hail actually damages a roof, and it's what separates real damage from the "cosmetic damage" exclusion carriers increasingly lean on.
Start from homes that clear both bars and you'll go to appraisal less often. When you do, you'll have the storm date and the radar-estimated stone size at the address in the file before the first appraiser calls.
The short version
- Appraisal settles the amount of loss, not coverage. Either side can demand it; two appraisers plus an umpire, any two signatures set the number.
- Causation is fair game. Texas (Johnson, 2009) and Colorado (BonBeck Parker, 2021) both let appraisers separate hail damage from wear.
- It costs the homeowner roughly $2,000 to $4,500. Worth it for "repair vs replace" gaps, not for a $3,000 disagreement.
- The roofer is the expert, not the appraiser. Texas §4102.163 and Colorado 6-22-105 both bar contractors from adjusting the claims they build.
- The best defense is a better lead. Big stones at the address on a young enough roof.
Run your own ticket and appraisal costs through the cost-per-job calculator before you recommend one to a homeowner. When you want leads that hold up in front of an umpire, our territories score every home inside the radar-estimated hail footprint on stone size at the address and roof age, for one roofer per city at a flat price on the pricing page. If your city is still open, check the territory map. First come.
One roofer per city. Real leads from real storms.
Exclusive Colorado territories with NOAA-verified storm scoring and TCPA-compliant outreach data.
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