Best Practices for Document Sharing and Managing New Information in Insurance Appraisal Proceedings

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In property insurance disputes, the appraisal process is intended to serve as an efficient and impartial method of determining the amount of loss. Its effectiveness, however, depends heavily on one critical factor: timely, transparent, and complete sharing of documentation between the appraisal panel. When information is withheld, delayed, or introduced improperly, the proceedings can become inefficient, adversarial, and misaligned with the intent of the appraisal provision.

As appraisal is becoming more widely utilized for resolving disputes, so too have there been increasing attempts to game the process, whether through selective disclosure or strategic delays, to leverage or influence an outcome.

This article outlines the best practices that appraisal panels should consider to maintain procedural integrity, especially when new documentation emerges that was never evaluated by the insurance carrier during the initial adjustment.

The Importance of Timely and Joint Document Sharing

A fair appraisal hinges on both appraisers evaluating the same information. Delays in sharing estimates, photos, inspection findings, or expert reports undermine the independence and effectiveness of the process. When one appraiser is forced to work with incomplete, outdated, or selectively curated information, the panel’s ability to reach an informed and balanced conclusion is compromised. This creates asymmetry in the evaluation process, distorts the development of each appraiser’s position, and can inadvertently shift the appraisal from a valuation exercise into a reactive, adversarial negotiation.

Such delays not only erode trust between the panel members but also increase the likelihood of unnecessary disputes, inject inefficiency into the proceedings, and may ultimately lead to avoidable reliance on the umpire. In short, withholding or staging the release of information prevents the appraisal process from functioning as intended: a fair, transparent, and timely mechanism for determining the amount of loss.

To avoid this, appraisal professionals should adhere to the following foundational practices:

• Exchange all file materials within 24–48 hours of assignment, or a timeline that is mutually agreed to by the panel.

• Establish a shared, secure document repository accessible to both appraisers (and to the umpire if invoked).

• Agree in advance that any document relied upon for valuation must be shared promptly and in full.

• Maintain documentation in a way that allows the entire panel to trace what information was available at each step.

  
  

When both appraisers are working from the same set of facts, the path to agreement is faster, clearer, and substantially more defensible.

Using the Document-Sharing Phase to Define the Scope of the Dispute

One of the most overlooked advantages of early document exchange is that it allows the appraisal panel to clearly define the scope of the dispute before proceedings formally begin. This stage is essential for:

• Identifying agreed-upon items vs. disputed items

• Determining where valuation opinions diverge

• Clarifying gray areas that may fall outside the appraisal’s scope

• Ensuring that both appraisers understand the precise issues to be submitted to the umpire (if needed)

  
  

When handled properly, the document-sharing phase becomes a collaborative checkpoint, a chance to resolve misunderstandings, eliminate unnecessary disputes, and ensure the appraisal begins with a shared and accurate understanding of the issues.

This early alignment dramatically improves efficiency, reduces friction, and helps prevent the panel from drifting into coverage questions or matters that should have been resolved during adjustment.

A Common Challenge: New Documentation Appearing Mid-Appraisal

It is not unusual for new or supplemental documents to surface after the appraisal has begun. Examples include:

• Contractor invoices never previously submitted

• Mitigation logs or EMS reports produced for the first time

• Change orders or supplemental estimates

• Expert opinions introduced mid-proceeding

• Property owner documents that were not shared with the carrier

  
  

The challenge arises when such materials were never reviewed, evaluated, or adjusted by the insurance carrier during the claim process.

This raises an important question: Is the new documentation appropriate for appraisal consideration?

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Best Practices for Evaluating Newly Introduced Documentation

Immediately Release the Document to the Full Panel

Regardless of origin, all new information must be shared immediately and transparently with both appraisers (and the umpire if already engaged). No document should be relied upon privately or withheld.

Determine Whether the Information Falls Within the Appraisal Scope

Under long-standing principles and case law, within most jurisdictions, the appraisal panel is limited to determining the amount of loss, not:

• coverage disputes,

• liability issues, or

• questions of whether services were approved or actually performed.

  
  

If the carrier never adjusted or accepted certain costs due to missing or incomplete documentation, the appraisal panel must determine whether the issue should be returned for adjustment, included in the valuation, or removed from the panels consideration.

Mark Unsupported Costs as “Not Appraised” When Appropriate

For charges that were never adjusted and cannot be evaluated with professional certainty due to missing or incomplete information, the proper disposition is: “Not Appraised – due to insufficient documentation and lack of carrier adjustment.”

This ensures the panel acts within its authority and prevents scope creep.

Maintaining Communication and Transparency Throughout the Process

Consistent communication between appraisers is a hallmark of a successful appraisal. Best practices include:

• Providing regular written updates

• Identifying potential points of disagreement early

• Coordinating inspections efficiently

• Notifying the panel promptly when new materials surface

  
  

Clear communication prevents friction and keeps the process progressing efficiently.

Building a Complete and Defensible Appraisal Record

A professional appraisal should conclude with a traceable, well-organized record that includes:

• All documents exchanged

• Inspection photos and notes

• Carrier and policyholder estimates

• Itemized areas of agreement and dispute

• Final position statements

• The executed appraisal award

  
  

A complete record both supports the panel’s credibility and ensures transparency should questions arise later.

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Conclusion

The appraisal process functions best when it is grounded in timeliness, transparency, and disciplined scope management. The early document-sharing phase is not merely administrative, it is a pivotal opportunity for the appraisal panel to establish the scope of the dispute, identify gray areas, and build the foundation for an efficient and fair proceeding.

By sharing documents promptly, evaluating new information responsibly, and maintaining open communication, appraisal professionals reinforce the integrity of the process and uphold appraisal as a trusted, efficient alternative to litigation.

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Charles Washkalavitch is Executive Vice Presidence and Principal Building & Property Claims Consultant at Longacre Appraisal & Adjustment Service, Inc. Charles specializes in evaluating structural damage, interpreting complex insurance policy provisions, and providing expert guidance in property loss disputes.