The Ultimate Guide to Insurance Appraisal in Louisiana
How Louisiana's non-binding appraisal framework, Act 625 registration rules, and anti-arbitration law shape property-claim valuation disputes.
Written by
Sarah PatchCo-Founder and Insurance Appraisal Writer
20 years across construction, design, and insurance-related work, including experience serving as an appraiser.
Louisiana insurance appraisal quick reference, key facts at a glance under R.S. 22:1311 as updated by HB 609 (Act 625, 2024). *While Louisiana law characterizes appraisal as non-binding (La. R.S. 22:1892(G)) and prohibits policy language using "binding" or "final" (LDI Directive 173), courts afford appraisal awards a strong presumption of correctness (St. Charles Parish Hospital Service Dist. No. 1 v. United Fire & Cas. Co., No. 2:07-cv-05924 (E.D. La. 2008)), and insurers typically pay them. Under HB 609, unpaid awards become admissible evidence in court.
Legal Authority for Insurance Appraisal in Louisiana
Louisiana's insurance appraisal framework rests on three pillars: the standard fire insurance policy statute, comprehensive 2024 reform legislation, and a longstanding public-policy prohibition on binding dispute resolution in insurance contracts. Together, they create a system that is unique among Gulf Coast states, one where appraisal is a structured, regulated process, but the courthouse door always remains open.
Louisiana is a civil-law jurisdiction. Unlike every other state, its legal system descends from the Napoleonic Code rather than English common law. However, Louisiana's insurance law, including its appraisal provisions, has incorporated substantial common law elements, and courts interpret insurance contracts using principles familiar to practitioners in common law jurisdictions. This civil-law foundation still shapes how courts approach statutory interpretation, favoring the plain language of statutes and written agreements over the accumulated weight of prior decisions.
La. R.S. 22:1311 — The Standard Fire Policy
The foundation of insurance appraisal in Louisiana is the standard fire insurance policy, codified at La. R.S. 22:1311(F)(2). This statute prescribes the exact language that must appear in fire and homeowner's policies issued in the state. The appraisal clause, embedded in the statutory policy form, establishes the basic framework: written demand by either party, selection of competent and disinterested appraisers within 20 days, appointment of an umpire, and an itemized written award.
Because the appraisal clause is legislatively mandated policy language rather than a freestanding statutory procedure, its operation is tightly linked to the terms of the policy itself. Courts interpret it as a contractual mechanism, not a separate statutory right, a distinction that has significant practical consequences.
"In case the insured and this company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for fifteen days to agree upon such umpire, then, on request of the insured or this company, such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall determine the amount of actual cash value and loss."
💡 In Plain Terms
When the insurer and the policyholder cannot agree on the dollar value of a covered loss, either side can trigger appraisal with a written demand. Each side selects their own appraiser. Those two appraisers choose a neutral umpire. If any two of the three agree on a number, that figure determines the amount of loss, but unlike Texas, the award is not binding and either party may challenge it in court.
HB 609 (Act 625, 2024) — Comprehensive Reform
In the 2024 Regular Session, the Louisiana Legislature enacted House Bill 609, sponsored by Representative Gabe Firment and signed by Governor Jeff Landry. The bill, designated Act 625, significantly expanded the regulatory framework governing appraisal by enacting La. R.S. 22:1807.1 through 22:1807.27, establishing one of the most detailed statutory frameworks for appraisers and umpires in Louisiana to date.
💡 Key Provision
HB 609 applies to property insurance policies issued, delivered, or renewed on or after January 1, 2025.
⚠️ Transition Period
Claims arising under policies issued before January 1, 2025 are not subject to HB 609's registration requirements, conflict-of-interest standards, or process deadlines. Professionals should verify the policy's issuance or renewal date to determine which framework applies, the prior standard fire policy provisions or the new R.S. 22:1807.1–.27 regime.
The act established mandatory registration for appraisers and umpires with the Commissioner of Insurance, codified specific qualifications and conflicts-of-interest standards, created a structured umpire-selection process with commissioner oversight, imposed deadlines on the appraisal process, and established payment timelines tied to bad-faith exposure.
HB 609 also updated the standard fire policy language in R.S. 22:1311 to align with these new procedural requirements, including a provision for mandatory residential policy appraisal clause language.
La. R.S. 22:868 & LDI Directive 173 — The Non-Binding Rule
The third pillar is La. R.S. 22:868(A)(2), which provides that no insurance contract delivered in Louisiana shall contain any provision that deprives Louisiana courts of jurisdiction or venue over an action against the insurer. This statute, tracing its origins to the Louisiana Insurance Code enacted in 1948 (originally codified as R.S. 22:629, redesignated to R.S. 22:868 in 2009), is the basis for Louisiana's prohibition on binding appraisal.
⚠️ Critical Distinction
An appraisal provision that states the process is "binding" or "final" or uses similar language may raise compliance concerns under Louisiana law. The LDI's LDI Directive 173 (Revised and Reissued, October 5, 2020) addresses this issue and cautions that non-compliant forms may be subject to regulatory action.
The practical effect: Louisiana appraisal awards carry a presumption of correctness, and courts often give effect to properly conducted appraisals. But either party retains the right to challenge the award in court. Under HB 609, appraisal outcomes may also have evidentiary significance in subsequent proceedings, and where payment is not made, timing and compliance may be evaluated in conjunction with applicable statutory provisions, including Louisiana Revised Statutes 22:1892.
SB 323 (Act 3, 2024) — Bad Faith Statute Amendments
Also enacted in the 2024 session, Senate Bill 323 (effective July 1, 2024) significantly restructured Louisiana's bad-faith framework. The act revised the structure of Louisiana's bad-faith statutes, including changes to Louisiana Revised Statutes 22:1973 and incorporation and reorganization of certain duties within La. R.S. 22:1892, and created La. R.S. 22:1892.2 for catastrophic loss claims.
For non-catastrophic claims, the 30-day payment deadline under La. R.S. 22:1892(A) was generally retained. For catastrophic losses to immovable property, La. R.S. 22:1892.2 established separate timelines: 60 days for residential property and 90 days for commercial property, with a 60-day cure-notice requirement prior to filing suit.
Relevant to appraisal: under La. R.S. 22:1892.2(D)(4), an insurer's tender of undisputed additional amounts within 30 days of receiving a valid appraisal award shall not, by itself, constitute evidence of bad faith, a provision consistent with reasoning reflected in cases such as Long v. American Security Insurance Co., while preserving the insured's right to pursue penalties for pre-appraisal conduct.
The act also introduced a reciprocal duty of good faith for insureds and their representatives (La. R.S. 22:1892(J)). This provision, which does not expressly create an independent cause of action for the insurer, provides that a trier of fact may consider any breach by the insured, including misrepresentation of facts or failure to comply with policy obligations, when determining penalties or attorney fees.
Whether certain provisions of SB 323 apply retroactively to claims arising before July 1, 2024 depends on whether the specific provision is procedural or substantive under Louisiana Civil Code Article 6. In Parria v. Louisiana Citizens Property Insurance Corp., the Louisiana First Circuit applied this framework in a related context, illustrating how courts analyze retroactivity under Civil Code Article 6. The retroactive applicability of SB 323's penalty and substantive duty provisions remains unsettled, and practitioners handling pre-effective-date claims should evaluate the specific statutory provision at issue.
What Is Louisiana Citizens?
Louisiana Citizens Property Insurance Corporation (LCPIC) is the state's residual market insurer. It operates two distinct plans: the FAIR Plan (covering fire and allied lines for properties that cannot obtain coverage in the private market) and the Coastal Plan (providing wind and hail coverage for properties in hurricane-prone coastal parishes). Unlike some state wind pools, LCPIC provides full property coverage under the FAIR Plan, not just wind-only policies.
By statute (La. R.S. 22:2303), LCPIC must set its rates at least 10% above the higher of the actuarially justified rate or the highest rates among assessable insurers meeting specified parish-level market-share thresholds, a design feature intended to encourage depopulation of the residual market back into private insurance.
LCPIC Appraisal — How It Applies
Appraisal provisions in LCPIC policies follow the same general framework as private market policies. Because LCPIC is a state-created entity governed by Title 22, its appraisal provisions are generally understood within the same legal framework as private-market policies, including considerations under La. R.S. 22:868. The HB 609 registration and qualification requirements apply to appraisers and umpires working on LCPIC claims in the same manner as for private-market claims.
⚠️ LCPIC Note
In the event of a plan-year deficit, LCPIC may declare assessments that are passed through to all policyholders in the state, not just LCPIC policyholders. Professionals working LCPIC claims should be aware that contested appraisals on large LCPIC losses can have broader fiscal implications.
Louisiana Department of Insurance (LDI)
The Louisiana Department of Insurance regulates the state's insurance market, licenses producers and adjusters, and, under HB 609, now maintains the registry of qualified appraisers and umpires. Louisiana is one of the states where the insurance commissioner is elected rather than appointed, serving a four-year term concurrent with the governor.
Louisiana Department of Insurance
Commissioner Tim Temple
Baton Rouge, LA 70802
Baton Rouge, LA 70804-9214
Appraisal vs. Arbitration in Louisiana
Louisiana law draws a sharp line between appraisal and arbitration, and prohibits binding arbitration provisions in insurance contracts, with appraisal treated differently as a valuation mechanism. Appraisal is a valuation procedure: it determines what the damage is worth. Arbitration is a dispute-resolution procedure that can decide liability, coverage, policy interpretation, and damages, essentially substituting for a trial. In Prien Properties, LLC v. Allstate Insurance Co. (W.D. La. 2008), the court confirmed that under Louisiana law, appraisals are not to decide coverage questions.
La. R.S. 22:868(A)(2) prohibits insurance policies from containing provisions that deprive Louisiana courts of jurisdiction or venue. Louisiana courts have consistently held that both binding arbitration and binding appraisal provisions violate this statute. The Louisiana Supreme Court addressed the issue in Police Jury of Calcasieu Parish v. Indian Harbor Insurance Co. (No. 2024-CQ-00449, La. Oct. 25, 2024), holding that the 2020 amendment adding Subsection (D) to R.S. 22:868, which permits forum selection clauses in certain policies, did not implicitly repeal the prohibition on arbitration. The court's interpretation of 22:868(A) applies broadly, not just to the political subdivision in that case. The Fifth Circuit had reached the same conclusion months earlier in SKAV, L.L.C. v. Independent Specialty Insurance Co. (No. 23-30293, 5th Cir. 2024), predicting how the Louisiana Supreme Court would rule, and subsequently relied on Calcasieu Parish in its December 2025 decision in Town of Vinton v. Indian Harbor Insurance Co. to affirm denials of motions to compel arbitration in consolidated surplus lines cases.
| Feature | Appraisal | Arbitration |
|---|---|---|
| What It Decides | Amount of loss only | All issues, coverage, liability, damages |
| Binding in LA? | Generally treated as non-binding in practice, with considerations under R.S. 22:868 & Directive 173 | No, per R.S. 22:868 (domestic insurers) |
| Panel | Two appraisers + umpire | One or more arbitrators |
| Governed By | R.S. 22:1311 & R.S. 22:1807.1–.27 | La. Binding Arbitration Law / FAA |
| Bad Faith Claims | Survive, appraisal does not preclude penalties | Typically resolved within arbitration |
⚠️ Exception, Foreign Insurers
Courts have held that non-American insurers may enforce arbitration clauses in Louisiana-issued policies under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In May 2025, the United States Court of Appeals for the Second Circuit held in Certain Underwriters at Lloyd's, London v. 3131 Veterans Blvd., LLC, Nos. 23-1268-cv, 23-7613-cv (2d Cir. May 8, 2025), that the New York Convention is self-executing and is not reverse-preempted by Louisiana law, meaning foreign (non-American) insurers can compel arbitration even as domestic insurers cannot. This exception does not apply to domestic insurers or to appraisal clauses. Practitioners should monitor this area, as the scope of the foreign-insurer exception remains the subject of developing case law and a recognized federal circuit split.
Can Appraisers Determine Causation?
Louisiana occupies a middle ground on the causation question. Courts have recognized that determining the "amount of loss" from a specific event necessarily requires some consideration of what caused the damage. But they have been equally clear that causation determinations made in appraisal are not binding, a significant departure from states like Texas, where courts have generally given greater weight to appraisers' causation determinations.
The leading authority is St. Charles Parish Hospital Service District No. 1 v. United Fire and Casualty Company (E.D. La.). The court found that the appraiser's consideration of causation, distinguishing wind damage from other causes, did not warrant vacating the award. The court emphasized that "an appraiser's job is not to determine policy coverage or liability, but that causation must be considered in order to determine the scope of the loss that must be measured." The court applied a presumption of correctness to the award while noting that the insurer retained the right to challenge causation determinations in court.
Similarly, in Fourchon Docks, Inc. v. National Union Fire Insurance Company (E.D. La.), the court upheld an appraisal award where the appraisers unanimously concluded that the loss was caused by wind, finding that the panel had fulfilled its duty under the policy.
What Appraisal Covers — and What It Does Not
Appraisal in Louisiana determines the actual cash value and the amount of loss to damaged property. It does not determine whether a loss is covered under the policy, whether an exclusion applies, whether the insurer has a valid coverage defense, or whether the insured has complied with policy conditions. These are coverage questions reserved for courts.
HB 609 reinforced this boundary: La. R.S. 22:1807.12 provides that the appraisal process applies when "an insurer has accepted coverage for a claim, in full or in part" and the parties have a dispute as to the amount of loss. The statute presupposes a coverage determination before appraisal begins.
Practical Note
Louisiana attorneys representing policyholders commonly require insurers to resolve all coverage issues in writing before agreeing to appraisal. This practice protects against post-award disputes over which damages were within the scope of coverage.
Panel Composition
The Louisiana appraisal panel follows the traditional three-member structure: one appraiser selected by the policyholder, one selected by the insurer, and an umpire selected by the appraisers (or, if they cannot agree, appointed by a judge of a court of record in the state where the property is located).
Policyholder's Appraiser
Selected by the insured. Must be competent and disinterested.
Insurer's Appraiser
Selected by the insurer. Must be competent and disinterested.
Umpire
Neutral tiebreaker. Selected by appraisers or appointed by court. Agreement by any two of three sets the award.
Louisiana insurance appraisal panel composition, an award requires agreement of any two of the three members
An award in writing, signed by any two of the three panel members, determines the amount of actual cash value and loss. Under HB 609, the award must be itemized, and the umpire is specifically directed to address only disputed items and to provide an itemized written decision to both parties and both appraisers.
Appraiser and Umpire Qualifications in Louisiana
Before HB 609, Louisiana had minimal statutory requirements for appraisers, the standard fire policy required only that they be "competent and disinterested." Act 625 supplemented that standard with specific, enforceable qualifications tied to professional licensing and registration with the Commissioner of Insurance.
Required (La. R.S. 22:1807.14)
Required (La. R.S. 22:1807.17)
Conflicts of Interest
HB 609 created a detailed conflicts-of-interest framework distinguishing between "potential" conflicts (which require disclosure) and "disqualifying" conflicts (which bar participation).
Disqualifying Conflicts — Appraisers
Party to the claim, The appraiser or an immediate family member is a party to the claim
Employment ties, The appraiser is a current employee or contractor of a party to the claim
Adjuster relationship, The appraiser is a current employee of the adjuster or public adjuster who adjusted the loss
Litigation conflict, The appraiser is involved in a lawsuit against the insurer that is a party to the appraisal
Disqualifying Conflicts — Umpires
Party to the claim, The umpire or an immediate family member is a party to the claim
Employment ties, The umpire is a current employee or contractor of a party to the claim
Open claims, The umpire has an open claim with the insurer that is a party to the appraisal
Litigation conflict, The umpire is involved in a lawsuit against the insurer that is a party to the appraisal
Catch-all, Any other direct or indirect interest that substantially conflicts with the umpire's duties
Public adjuster bar: La. R.S. 22:1706(10) separately provides that a public adjuster cannot act as an appraiser or umpire if that public adjuster is adjusting or has adjusted any part of the claim or property subject to the appraisal. The 2025 Legislature further expanded public adjuster restrictions through HB 121 (Act 473, eff. Jan. 1, 2026), prohibiting public adjusters from providing construction, roofing, or repair services in connection with claims they adjust, and prohibiting unlicensed persons from advertising or soliciting as "insurance claims specialists."
Appraiser Obligations During the Process
Under HB 609, appraisers must disclose potential conflicts within five days of being hired, must not withdraw except for unforeseen circumstances, must consider all information provided by the parties and any reasonably available evidence, must provide an itemized written estimate, and must not allow outside pressure to affect their judgment, delegate their duty, communicate with the umpire without including the other party's appraiser, or charge fees on a contingent basis.
Umpires face parallel obligations and are additionally prohibited from beginning work without written instructions from the appraisers, visiting the claimant's property without consent from both appraisers, and participating in settlement discussions unless requested by both parties.
Step by step
The Louisiana Insurance Appraisal Process
Insurance appraisal in Louisiana follows a six-step sequence under La. R.S. 22:1311 and HB 609 (Act 625, 2024). The process applies when the insurer has accepted coverage and the dispute is limited to the amount of loss.
The 6-step Louisiana insurance appraisal process under La. R.S. 22:1311 and HB 609 (Act 625, 2024)
How to Demand Appraisal
Either the insured or the insurer may demand appraisal in writing when there is a disagreement about the actual cash value or the amount of loss. There is no statutory form requirement, a clear written statement invoking the appraisal clause is sufficient. Under HB 609, the process applies when the insurer has accepted coverage (in full or in part) and the dispute is limited to the amount of loss.
How Umpires Are Selected
The appraisers first attempt to agree on an umpire. Under the standard fire policy, they have 15 days. If they cannot agree, either party may request that a judge of a court of record in the state appoint one. HB 609 added a commissioner-created umpire selection panel as an additional mechanism: the commissioner may prepare a list of qualified umpires for the appraisers to select from, with a fallback to judicial appointment if the panel process also fails.
Litigation Abatement
Under the HB 609 amendments to R.S. 22:1311, if a lawsuit has been filed before a demand for appraisal, the lawsuit is held in abatement during the period between a timely demand for appraisal and the deadline for execution of an appraisal award. The court of record where the property is located may enforce the deadlines, set a reasonable deadline for demanding appraisal after all parties have filed pleadings, and require compliance with discovery obligations on issues unrelated to the appraisal.
Timelines
Duties and Deadlines
Louisiana's appraisal deadlines come from two sources: the standard fire policy language in R.S. 22:1311 and the HB 609 process provisions. Here is the consolidated timeline:
| Deadline | Requirement | Source |
|---|---|---|
| 20 days | Each party must select an appraiser and notify the other | R.S. 22:1311 |
| 15 days | Appraisers must agree on an umpire, or either party may petition a court | R.S. 22:1311 |
| 30 days | Appraisers have 30 days to agree on the amount of loss (extendable to 60 days) | HB 609, R.S. 22:1807.13 |
| 5 days | Appraisers and umpires must disclose conflicts of interest | HB 609 |
| 30 days | Payment obligations may arise following appraisal, subject to policy terms and applicable statutes, including R.S. 22:1892 | R.S. 22:1892 |
| 30 days | Loss becomes payable after proof of loss received and ascertainment made | R.S. 22:1311 |
| 24 months | Suit on the policy must be commenced after inception of the loss | R.S. 22:1311 |
| 60 days | Cure-notice period for catastrophic loss bad-faith claims before filing suit | SB 323, R.S. 22:1892.2 |
| 2 years | Prescriptive period for bad-faith claims under R.S. 22:1892 and R.S. 22:1892.2 | SB 323, Act 3, 2024 |
💡 2025 Update, Proof of Loss Reform
HB 437 (Act 500, eff. August 1, 2025) further amended R.S. 22:1892 and created La. R.S. 22:1892.3, allowing insurers to require submission of a formal proof of loss statement as a condition precedent to payment under any property insurance policy. Where an insurer requires a proof of loss form, the insurer's receipt of a completed proof of loss statement from the claimant constitutes the exclusive means of "satisfactory proof of loss" for purposes of statutory payment deadlines under R.S. 22:1892 and R.S. 22:1892.2. Insurers must provide the form within 10 business days of notice of the claim and review it for completeness within 10 business days of receipt. The act also allows insurers to require proof of deductible payment before paying recoverable depreciation or replacement cost holdback. Practitioners should verify current proof of loss requirements when calculating bad-faith timelines.
Appraisal Process Deadlines
Day count from written demand, standard path 95 days, extended path up to 125 days
R.S. 22:1311
HB 609
R.S. 22:1311
R.S. 22:1807.13
R.S. 22:1892(G)
Louisiana appraisal process deadlines under R.S. 22:1311 and HB 609 (Act 625, 2024). The appraisal period is extendable from 30 to 60 days by mutual agreement of both appraisers, shifting the insurer's payment window accordingly. Conflict disclosure runs concurrently with appraiser selection.
⚠️ Waiver Risk
In Sevier v. U.S. Fidelity & Guaranty Co., 497 So.2d 1380 (La. 1986), the Louisiana Supreme Court held that an insurer's demand for appraisal after the 60-day payment period was untimely. Parties should be mindful of the interaction between appraisal timing and the policy's loss-payment provisions, an untimely demand may be deemed a waiver of the right to appraisal.
Bad Faith Exposure and Appraisal Timing
Under the 2024 amendments to La. R.S. 22:1892 (SB 323, Act 3), the bad-faith framework distinguishes between catastrophic and non-catastrophic claims and between immovable and non-immovable property. For non-catastrophic claims involving immovable property (including residential), failure to pay within 30 days of satisfactory proof of loss, when found arbitrary, capricious, or without probable cause, subjects the insurer to a penalty of 50% of the amount found due, or, if a partial tender was made, 50% of the difference between the amount paid and the amount found due, plus proven economic damages and attorney fees (R.S. 22:1892(B)(1)). For claims not involving immovable property, the penalty under R.S. 22:1892(I)(1)(a) is 50% of damages or $5,000, whichever is greater. For catastrophic losses to residential immovable property, the deadline extends to 60 days (90 days for commercial immovable property), with a mandatory 60-day cure-notice period as a condition precedent to suit under La. R.S. 22:1892.2. Regardless of claim type, an insurer's compliance with the appraisal process does not insulate it from bad-faith penalties for pre-appraisal conduct. Radosta v. Lexington Insurance Co., 2014 WL 1513424 (E.D. La. 2014).
💡 Proof of Loss Reform (2025)
HB 437 (Act 500, eff. August 1, 2025) created La. R.S. 22:1892.3, which allows insurers to require a formal proof of loss statement as a condition precedent to payment. Where an insurer requires such a form, the insurer's receipt of a completed proof of loss statement constitutes the exclusive means of "satisfactory proof of loss" for purposes of the statutory payment deadlines, potentially affecting when the 30-day bad-faith clock begins to run. Practitioners calculating penalty exposure should verify whether the policy at issue requires a proof of loss form and, if so, whether the form was properly provided and completed.
Appraisal Award and Enforcement
Is Insurance Appraisal Binding in Louisiana?
Under current law, Louisiana appraisal is generally treated as non-binding, though the extent of its finality is shaped by statute, policy language, and case law. The prohibition flows from La. R.S. 22:868(A)(2), which bars insurance contracts from depriving Louisiana courts of jurisdiction. LDI Directive 173 addresses appraisal-related policy language and indicates that provisions using "binding," "final," or similar terminology may raise compliance concerns and that non-compliant policy forms will subject insurers to sanctions.
However, "non-binding" does not mean "without legal effect." Louisiana courts afford appraisal awards a presumption of correctness. The burden falls on the party challenging the award to demonstrate grounds for vacatur. If the insurer pays the award within applicable timeframes, the appraisal may resolve the amount-of-loss dispute in practice. If the insurer does not pay within 30 days, the award amount can be used as evidence in litigation but is not binding on either party.
⚠️ Vacating the Award
Under La. R.S. 22:1807.25 (HB 609), an insurer's motion to vacate for good cause must be filed with the court. Good cause includes conflicts of interest, lack of independence or inability to competently carry out duties, or any other reasons that would reasonably be expected to impair the appraisal.
Legislative Watch
In the 2025 Regular Session, HB 379 (Rep. Wright) would have permitted mandatory binding arbitration in property insurance policies under specific conditions, including a separate endorsement, premium discount, and signed acknowledgment. The bill passed the Louisiana House 64–35 but stalled in the Senate. A separate bill, HB 561 (Rep. Firment, the author of HB 609), would have explicitly exempted surplus lines insurers from the R.S. 22:868 arbitration prohibition. Neither bill became law, but the non-binding framework may be revisited in future sessions. The 2026 Regular Session convenes March 9, 2026; practitioners should monitor prefiled bills for renewed measures.
Legal precedent
Key Louisiana Case Law on Insurance Appraisal
Louisiana's appraisal jurisprudence has developed primarily in federal courts applying Louisiana law, often in the wake of major hurricanes.
Timeline of key Louisiana insurance appraisal decisions, from the 1986 Sevier timeliness ruling through the 2024 Calcasieu Parish anti-arbitration confirmation by the Louisiana Supreme Court
Sevier v. U.S. Fidelity & Guaranty Co.
497 So.2d 1380 (La. 1986)
The Louisiana Supreme Court held that the insurer's demand for appraisal was untimely when made after the 60-day loss-payment period had elapsed. The decision established that the right to appraisal can be waived by failure to invoke it within the timeframe contemplated by the policy's payment provisions.
St. Charles Parish Hospital v. United Fire & Casualty Co.
No. 2:07-cv-05924 (E.D. La. Apr. 28, 2008)
A federal case applying Louisiana law in which the court upheld an appraisal award where the appraisers necessarily considered causation in determining the amount of wind damage. The court declined to vacate the award, emphasizing the deference given to appraisal determinations.
Long v. American Security Insurance Co.
2010-0026 (La. App. 4 Cir. 11/17/10); 52 So. 3d 260
Affirmed dismissal of a bad-faith claim, holding that the insurer's compliance with the policy's appraisal process demonstrated a legitimate dispute over the amount of loss and did not constitute arbitrary or capricious conduct.
Willwoods Community v. Essex Insurance Co.
09-651 (La. App. 5 Cir. 4/13/10); 33 So.3d 1102
Unlike in Long, the excess insurer in Willwoods made unconditional payments during the appraisal process. The Louisiana Fifth Circuit Court of Appeal (state appellate court) held that those tenders constituted "undisputed written proof" of additional damages, exposing the insurer to bad-faith penalties for the delay in paying the balance. The case illustrates that an insurer's own appraiser's estimate can create an undisputed floor that must be paid promptly.
Radosta v. Lexington Insurance Co.
CIV.A. 13-4441, 2014 WL 1513424 (E.D. La. Apr. 16, 2014)
Rejected the argument that compliance with an appraisal clause categorically precludes a finding of bad faith. The court distinguished Long, explaining that while appraisal may demonstrate the existence of a legitimate dispute, it does not bar claims based on an insurer's pre-appraisal conduct.
SKAV, L.L.C. v. Independent Specialty Insurance Co.
No. 23-30293 (5th Cir. 2024)
Held that La. R.S. 22:868 prohibits arbitration provisions in insurance policies, rejecting arguments that the 2020 amendment adding Subsection (D) implicitly authorized them. The Fifth Circuit concluded that Subsection (D) permits forum and venue selection clauses, but not arbitration. The Louisiana Supreme Court later confirmed this interpretation in Police Jury of Calcasieu Parish v. Indian Harbor Insurance Co. (La. Oct. 25, 2024).
Police Jury of Calcasieu Parish v. Indian Harbor Insurance Co.
No. 2024-CQ-00449, 395 So. 3d 717 (La. Oct. 25, 2024)
Held that the 2020 amendment to La. R.S. 22:868 adding Subsection (D) did not repeal the statute's prohibition on arbitration clauses in insurance policies. The Court clarified that Subsection (D) permits forum and venue selection clauses only, not arbitration. It further held that La. R.S. 9:2778 bars arbitration in insurance contracts with political subdivisions and that equitable estoppel cannot be used to enforce arbitration where it would conflict with Louisiana law.
Reference
Resources & Primary Sources
The primary legal and regulatory sources referenced throughout this guide. All links point to official government sites, court databases, or established legal research platforms.
Find a professional
Where to Find a Qualified Appraiser or Umpire
Under HB 609, appraisers and umpires working on Louisiana property claims must be registered with the Commissioner of Insurance. The LDI is required to publish a list of registered appraisers and umpires. For professionals seeking to connect with qualified, vetted appraisers and umpires across Louisiana, or for appraisers looking to reach the market, the InsuranceAppraisal.com directory is the dedicated national marketplace.
Search the InsuranceAppraisal.com Directory
Browse qualified appraisers and umpires in Louisiana, or list your credentials and reach insurers, public adjusters, and attorneys across the state.
Find an Appraiser or UmpireFrequently Asked Questions
No. Louisiana is one of the few states where insurance appraisal is expressly non-binding. La. R.S. 22:868(A)(2) prohibits insurance policies from containing provisions that deprive Louisiana courts of jurisdiction. LDI Directive 173 specifically bars appraisal language using "binding" or "final." Under HB 609 (Act 625, 2024), if an insurer does not pay the award within 30 days, the award can be used as evidence in court but is not binding. Courts do afford appraisal awards a presumption of correctness.
Appraisal determines only the amount of loss. Arbitration can decide all issues including coverage, liability, and policy interpretation. Louisiana prohibits both binding appraisal and binding arbitration in insurance policies under La. R.S. 22:868(A)(2). The Louisiana Supreme Court confirmed this prohibition in Police Jury of Calcasieu Parish v. Indian Harbor Insurance Co. (La. Oct. 25, 2024).
Louisiana courts have permitted appraisers to consider causation to a limited extent when determining the amount of loss. In St. Charles Parish Hospital v. United Fire and Casualty, the court found that causation determinations are permissible but are not binding and either party retains the right to challenge them.
Under the standard fire policy (La. R.S. 22:1311), each party must select an appraiser within 20 days of a written demand. Appraisers have 15 days to agree on an umpire. Under HB 609, appraisers have 30 days to agree on the amount of loss, extendable to 60 days. Insurers must pay the award within 30 days.
Under HB 609 (effective January 1, 2025), appraisers must have at least three years of experience, training in estimating property damage, and hold an active license as a professional engineer, architect, insurance adjuster, public adjuster, or general contractor. All must register with the Commissioner of Insurance.
Sources & Citations
- 1La. R.S. 22:1311, Standard Fire Insurance Policy, Justia Law.
- 2HB 609 (Act 625, 2024), Appraisal Process Reform, Louisiana Legislature.
- 3La. R.S. 22:868, Prohibition on Binding Provisions, Justia Law.
- 4LDI Directive 173, Louisiana Department of Insurance.
- 5La. R.S. 22:1892, Bad-Faith Penalties, Louisiana Legislature.
- 6SB 323 (Act 3, 2024), Bad Faith Statute Amendments, Louisiana Legislature.
- 7HB 437 (Act 500, 2025), Proof of Loss Requirements, Louisiana Legislature.
- 8La. R.S. 22:1706, Public Adjuster Standards of Conduct, Louisiana Legislature.
- 9Sevier v. United States Fidelity & Guar. Co., Justia Law.
- 10St. Charles Parish Hospital Service District No. 1 v. United Fire and Casualty Company, No. 2:2007cv05924 — Document 88 (E.D. La. 2010), Justia Law.
- 11Long v. American Security Insurance Co., Justia Law.
- 12Willwoods Cmty. v. Essex Ins. Co., vLex.
- 13Radosta v. Lexington Insurance Co., CIV.A. 13-4441, 2014 WL 1513424 (E.D. La. Apr. 16, 2014), CaseMine.
- 14SKAV, L.L.C. v. Independent Specialty Insurance Co., No. 23-30293 (5th Cir. 2024), Justia Law.
- 15Police Jury of Calcasieu Parish v. Indian Harbor Insurance Co., Justia Law.
Disclaimer
This guide is provided for informational purposes only and does not constitute legal advice. While every effort has been made to ensure accuracy, statutes, regulations, and case law are subject to change. This guide covers personal lines property insurance only and does not address commercial, surplus lines, or specialty policies except where noted. Case law cited may be superseded by subsequent decisions. Consult a licensed Louisiana attorney for advice on specific claims or legal questions. Last updated: April 2026.
