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.