Mediation and Appraisal for Hurricane Claims
When you and your insurer disagree on a claim, you have options short of a lawsuit. The two most common are the state’s mediation program and the appraisal clause in your policy.
| LDI hurricane mediation | Appraisal | |
|---|---|---|
| What it is | A neutral mediator helps both sides negotiate | Each side picks an appraiser; an umpire breaks ties |
| Binding? | No, but a written settlement becomes binding unless rescinded in time | The award sets the amount of loss, subject to the policy’s terms, limits and deductible |
| What it decides | Anything both sides agree to | The amount of loss on the part of the claim the insurer has accepted |
| When it’s available | Residential claims in an area covered by the governor’s emergency declaration for a named windstorm; disputes up to $150,000 (larger if both agree) | Policies issued, delivered or renewed on or after Jan. 1, 2025, when the insurer has accepted coverage at least in part and the amount is disputed |
| Cost | Insurer generally pays the conference cost; you may pay if you miss it, and extra sessions can cost both sides | Each side pays its own appraiser and half the umpire and appraisal costs |
| Source | LDI program page | Act 625 of 2024; La. R.S. 22:1807.1–.27 |
Mediation
Louisiana’s Hurricane Mediation Program is voluntary and non-binding. You can request mediation of an eligible residential property-damage dispute of up to $150,000 when the governor declares a state of emergency for a named windstorm and your property is in the declared area. You and the insurer can agree to mediate a larger dispute. If you reach a written settlement, it becomes binding unless it is rescinded in time.
The insurer generally pays the reasonable cost of the mediation conference. If you fail to appear, you pay for rescheduling, and continued mediation after a partial agreement can cost both sides. The program doesn’t need to be activated for each storm, but every claim must meet the declaration, location and claim requirements (La. R.S. 22:2653, 22:2655).
Appraisal under the 2024 law
For property policies issued, delivered or renewed on or after January 1, 2025, Act 625 of 2024 sets the rules for appraisal. The process covers a dispute over the amount of loss on the part of the claim the insurer has accepted:
- Appraisers need three years in their licensed profession, experience or training in estimating property damage, an active license (engineer, architect, adjuster, public adjuster or contractor), and registration with the Insurance Commissioner.
- Umpires must be qualified appraisers or Louisiana attorneys experienced in first-party property damage litigation, and must meet conflict-of-interest rules.
- Appraisers and umpires can’t be paid a contingency fee or a percentage of the award.
- Each side pays its own appraiser and half the umpire’s fees and appraisal costs.
The Department of Insurance itself warns that appraisal can be slow.
Which is right for you?
Appraisal fits a pure pricing dispute on a claim the insurer has accepted. It doesn’t decide whether damage is covered, and an award doesn’t automatically prove bad faith. If the insurer doesn’t pay an award on time, though, the award can be evidence in a dispute over payment and penalties. Mediation is quicker and keeps every option open. A lawsuit may be needed when the insurer denies coverage outright or acts in bad faith. I can help you choose before you sign anything that limits your options.
Considering mediation or appraisal? 504-834-4000. Back to Louisiana Hurricane Insurance Claims