When a carrier denies or underpays, you usually have more than one path. Here's how appraisal, mediation, and litigation differ — and where each one fits.
When an insurer denies or underpays a property claim, “fight it” is not one option — it’s usually three. Appraisal, mediation, and a lawsuit solve different problems, cost different amounts, and are not interchangeable. Picking the wrong one wastes time you may not have.
Appraisal: a dispute over how much
Appraisal is a contract remedy, not a court process. Most Florida homeowner policies contain an appraisal clause: if you and the carrier agree the loss is covered but disagree on the dollar amount, either side can demand appraisal. Each picks an appraiser; the two pick an umpire; a majority sets the number.
Appraisal is built for amount fights, not coverage fights. If the carrier says the damage isn’t covered at all — wear and tear, flood exclusion, no wind event — appraisal generally can’t decide that. See our breakdown of wear-and-tear vs. wind denials. We cover the mechanics of both remedies in the mediation and appraisal guide.
Mediation: a voluntary settlement talk
Florida’s Department of Financial Services runs a free mediation program for many residential claims under Fla. Stat. § 627.7015. A neutral mediator hosts a conversation; nobody is bound unless both sides agree. It’s low-cost and low-risk, but it only works if the carrier is willing to move. A mediator can’t order anyone to pay.
A lawsuit: coverage denials and bad faith
Litigation is the path when coverage itself is denied, or when the carrier’s conduct — not just its math — is the problem. Florida law requires a presuit notice before most property suits (Fla. Stat. § 627.70152), and separate statutes govern unfair claim practices (§ 626.9541) and bad faith (§ 624.155). A lawsuit is slower and more involved than appraisal or mediation, but it’s the only route that can resolve whether something is covered.
How they fit together
- Amount dispute, coverage agreed → appraisal is often fastest.
- Both sides open to talking → mediation is cheap to try.
- Coverage denied, or conduct in question → litigation may be the only path.
These paths can overlap, and deadlines apply to all of them. This is general information, not legal advice — confirm the current statutes and your own dates with a licensed attorney before choosing a route.
Not sure which fight you’re in? Start with the claims resource hub or run the deadline countdown tool to see what clock you’re on.
General information, not legal advice — laws and policies vary and change. Confirm current statutes and your own dates with a licensed attorney before acting.