At a glance
- Name an appraiser
- Whatever the parties agree to once both have consented to appraisal. Neither side can impose a deadline on the other.
- Choose an umpire
- By agreement of the parties.
- If they cannot agree
- By agreement only.
- Suit deadline paused?
- No. Demanding appraisal does not pause the deadline to sue under the policy. Note that deadline before you demand appraisal.
- Licensing
- No license. The parties agree on who serves.
The clock
- Day 0 Written demand Either party. Certified mail.
- By agreement Appraisers named By agreement for each side
- By agreement Umpire chosen By agreement, 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 agreement Appraisers named By agreement for each side
- By agreement Umpire chosen By agreement, 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 South Dakota 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. Demanding appraisal does not pause the deadline to sue under the policy. Note that deadline before you demand appraisal.
What the panel decides
Amount of loss, by agreement.
Everywhere, including South Dakota, 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 license. The parties agree on who serves.
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
Not binding. Under Bulletin 98-5 the outcome of an agreed appraisal cannot bind either party, though it is strong evidence of the amount of loss.
Points particular to South Dakota
S.D. Codified Laws § 21-25A-3 voids any insurance policy provision requiring arbitration or restricting a party from enforcing its rights by ordinary legal proceedings. Bulletin 98-5 (May 1998) applies that rule to provisions labelled appraisal.
Carriers filing forms in South Dakota use approved optional-appraisal language. An agreed appraisal is still a useful way to settle a scope dispute; it simply cannot be forced or made final.
Common losses in South Dakota
The disputes we see most often in South Dakota arise from:
- Hail and wind
- Winter storm and freeze
- Tornado
Flood is insured separately, usually through the National Flood Insurance Program, under federal rules rather than South Dakota's. Its appraisal clause settles price only, and its deadlines are its own. How a flood claim works
Authorities
- South Dakota Division of Insurance Bulletin 98-5
- S.D. Codified Laws § 21-25A-3
- The general guide to insurance appraisal
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 South Dakota
Does my South Dakota homeowners policy have an appraisal clause?
Almost certainly.
South Dakota 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 South Dakota?
Whatever the parties agree to once both have consented to appraisal.
Neither side can impose a deadline on the other.
Who chooses the umpire in South Dakota if the appraisers cannot agree?
By agreement only.
Can the appraisers decide whether my loss is covered in South Dakota?
Amount of loss, by agreement.
Does demanding appraisal pause the deadline to sue in South Dakota?
No. Demanding appraisal does not pause the deadline to sue under the policy.
Note that deadline before you demand appraisal.
Do appraisers need a license in South Dakota?
No license.
The parties agree on who serves.
Nearby: Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Nebraska, North Dakota, Ohio, Wisconsin