Insurance appraisal in Colorado: how the appraisal clause works

At a glance

Name an appraiser: The policy form (most homeowners forms use 20 days).
Choose an umpire: If the two appraisers cannot agree within 15 days, either party may ask a judge of a court of record in the county where the property sits to choose the umpire.
If they cannot agree: A judge of a court of record in the county of the property, on request (policy form).
Suit deadline paused?: No tolling by appraisal. Colorado allows three years to sue on a contract, and § 10-4-110.8(12) bars homeowners policies from shortening it.
Licensing: No appraiser license. Under Dakota Station II an appraiser must be unbiased, disinterested and unswayed by personal interest, not an advocate. Division of Insurance Bulletin B-5.26 requires appraisers and umpires to disclose contingent fees and relationships and bars ex parte contact with the umpire. A capped contingent fee was not disqualifying as a matter of law in Dakota Station, but any fee tied to the outcome invites a challenge.

The clock

Day 0 Written demand Either party. Certified mail.
By day 20 Appraisers named 20 days for each side
By day 35 Umpire chosen 15 days, or a judge appoints
On site Inspection Both estimates, line by line
The award Award signed Any two of three
After filing Payment Commonly within 60 days

Day 0 Written demand Either party. Certified mail.
By day 20 Appraisers named 20 days for each side
By day 35 Umpire chosen 15 days, or a judge appoints
On site Inspection Both estimates, line by line
The award Award signed Any two of three
After filing Payment Commonly within 60 days

Appraisal in Colorado begins with a written demand from one party to the other. The deadlines in the table above run from that demand: first the period to name an appraiser, then the period for the two appraisers to agree on an umpire. Send the demand by certified mail with return receipt, and keep a copy with the policy.

Once the panel is complete, the appraisers inspect the property, prepare their estimates and work through the differences line by line. Only what they cannot settle goes to the umpire.

On the deadline to sue: No tolling by appraisal. Colorado allows three years to sue on a contract, and § 10-4-110.8(12) bars homeowners policies from shortening it.

What the panel decides

Amount of loss and value. An award does not resolve bad-faith liability. Colorado trial courts have let panels separate hail damage from pre-existing conditions.

Everywhere, including Colorado, the panel leaves alone whether the policy covers the loss, how the policy language is read, and whether the carrier acted in bad faith. Those are for the courts. An award that strays into them is the one most likely to be set aside.

Who may serve

No appraiser license. Under Dakota Station II an appraiser must be unbiased, disinterested and unswayed by personal interest, not an advocate. Division of Insurance Bulletin B-5.26 requires appraisers and umpires to disclose contingent fees and relationships and bars ex parte contact with the umpire. A capped contingent fee was not disqualifying as a matter of law in Dakota Station, but any fee tied to the outcome invites a challenge.

Whatever the statute says, the policy standard is the one that decides most challenges: an appraiser must be competent and impartial, or in some forms disinterested. The contractor who will do the work, a public adjuster paid a share of the claim, or anyone employed by a party does not meet it. We are paid a flat fee for that reason.

The award

Binding so long as the panel performed the duties the policy required; set aside only for lack of authority, fraud, accident or mistake (Andres Trucking v. United Fire, Colo. App. 2018), or where an appraiser was partial (Owners Ins. Co. v. Dakota Station II, 2019 CO 65; Auto-Owners v. Summit Park, 10th Cir. 2018). Appraisal is not arbitration under the Colorado Uniform Arbitration Act.

Points particular to Colorado

Hail is the dominant dispute in Colorado, and most disagreements are about scope: how much of the roof, which elevations, matching, and code upgrades. Those are appraisable questions.

A 2026 bill to make appraisal mandatory and expressly include causation and scope (HB 26-1247) was postponed indefinitely in March 2026. The 2023 statute people sometimes cite (HB 23-1174) concerns underinsurance and replacement cost, not appraisal.

Colorado wildfire claims involve extended replacement cost and additional living expense provisions that have their own rules; appraisal addresses the amount of loss within them.

Common losses in Colorado

The disputes we see most often in Colorado arise from:

Hail
Wildfire
Wind and winter storm
Freeze and burst pipes

Flood is insured separately, usually through the National Flood Insurance Program, under federal rules rather than Colorado's. Its appraisal clause settles price only, and its deadlines are its own. How a flood claim works

Authorities

Statutes, regulations and case law change. This page was reviewed against official sources in October 2026 and describes the general rule; it is not legal advice about your claim.

Questions about appraisal in Colorado

Does my Colorado homeowners policy have an appraisal clause?

Almost certainly.

Colorado does not require the clause by statute, but nearly every homeowners and commercial property form sold in the state includes one. Look in the policy's conditions section, usually under the heading Appraisal.

How long do we have to name an appraiser in Colorado?

The policy form (most homeowners forms use 20 days).

Who chooses the umpire in Colorado if the appraisers cannot agree?

A judge of a court of record in the county of the property, on request (policy form).

Can the appraisers decide whether my loss is covered in Colorado?

Amount of loss and value.

An award does not resolve bad-faith liability. Colorado trial courts have let panels separate hail damage from pre-existing conditions.

Does demanding appraisal pause the deadline to sue in Colorado?

No tolling by appraisal.

Colorado allows three years to sue on a contract, and § 10-4-110.8(12) bars homeowners policies from shortening it.

Do appraisers need a license in Colorado?

No appraiser license.

Under Dakota Station II an appraiser must be unbiased, disinterested and unswayed by personal interest, not an advocate. Division of Insurance Bulletin B-5.26 requires appraisers and umpires to disclose contingent fees and relationships and bars ex parte contact with the umpire. A capped contingent fee was not disqualifying as a matter of law in Dakota Station, but any fee tied to the outcome invites a challenge.

Nearby: Arizona, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming