By SPJ Adjusting Services | Insurance Appraisals
Understanding the Shift: Why Louisiana Appraisal Rules Should Get Texas Policyholders’ Attention
Insurance appraisal laws are changing everywhere, and those that regulate the process in Louisiana have just been updated, effective January 1, 2025. While these rules technically govern Louisiana property policies, Texas homeowners and commercial policyholders are wise to take note-particularly residents.
Why?
That is because changes in neighboring states often affect how insurers operate elsewhere. Patterns that start in Louisiana frequently find their way into Texas’ claim practices, particularly in the areas of appraisal, adjuster qualifications, appraisal fee structures, and conflict-of-interest rules.
For over a decade, SPJ Adjusting has witnessed and participated in changing regulatory standards, impacting the handling of roof claims, hail damage disputes, and hurricane losses across Texas. This blog breaks down what Louisiana has adopted, how their framework works, and what Texas policyholders should expect if similar standards gain traction here.
The Big Picture: A Push for More Structure and Accountability in Appraisals
Louisiana’s new model is quite simple:
Define who can be an appraiser. Define who can be an umpire. Limit conflicts. Create accountability.
For years, Texas policyholders – particularly those right here – have been suffering inconsistent appraisal experiences. Some appraisers had little construction experience. Some umpires lacked property damage expertise. Some appraisals lacked transparency.
New Louisiana rules seek to eliminate such problems, and that could pressure Texas regulators and insurers to adjust expectations in our state as well.
Stricter Professional Requirements: Why This Matters in Texas
One of the critical facets of the overhaul in Louisiana is its focus on professional competence.
What Louisiana Now Requires for Appraisers
To serve as an appraiser on a property claim, an individual must:
- At least three years of experience in their licensed profession
- Training or real-world experience estimating property damage
- An active professional license, such as:
- Professional engineer
- Architect
- Insurance adjuster
- Public adjuster
- General contractor
This is a big shift. It means no more hand-picked “friendly appraisers” with minimal experience. It means no more appraisers who can’t read a scope sheet or estimate a roof system
Why Texas Policyholders Should Care
Texas does not currently enforce state-wide qualifications for appraisers or umpires. This means:
- Insurers can select appraisers who may have limited knowledge of construction.
- Umpires may have to rely more on negotiation skills than technical knowledge.
- This can often put policyholders at a disadvantage if their appraiser isn’t similarly experienced.
When Texas eventually takes the lead from Louisiana, the appraisal process will be further balanced, especially for complex losses such as
- Hail-damaged roofing in
- Tornado-related structural failures in North Texas
- Flood intrusion and resultant moisture damage
- Commercial HVAC damage after power surge events
- Hurricane-force wind damage from Gulf storms
At SPJ Adjusting, we already require our appraisers and umpires to exceed these standards-for fairness, transparency, and professionalism-regardless of state requirements.
Conflicts of Interest: A Clearer, Stricter Approach
Another major improvement in Louisiana’s law is its specific rules against conflicts of interest.
Conflicts that disqualify an appraiser or umpire include the following:
- Is directly involved in the claim
- Is an employee or contractor of either party
- Has an open claim with the insurer in question.
- Is currently suing the insurer
- Has any direct or indirect financial interest in the outcome
Why This Matters for Texas Property Owners
Conflicts are not always apparent in Texas. The following situations have been reported for policyholders:
- Insurer-selected appraisers who are former employees of the carrier
- Umpires who have long-standing business relationships with one side
- Appraisers negotiating payouts based on prior agreements
- Adjusters who previously scoped the loss acting as appraisers
The model of Louisiana establishes transparency that is badly needed in Texas. Without the adoption of these rules, policyholders can make use of the standards in challenging selective decisions by insurance companies.
SPJ Adjusting already operates under a strict policy of no conflict. We believe both sides deserve a competent and neutral appraisal no favoritism, no secret influences.
How the new umpire standards stand up to Texas appraisal practices
Umpires play a very important role. In cases of appraiser disagreement, the umpire effectively determines the value of the claim. According to Louisiana’s new law, an umpire must either
- Meet all the qualifications of an appraiser, or
- Have first-party property experience as an attorney
In addition to that, the umpire:
- Cannot commence work until written joint instructions are issued
- Cannot view the property without having both appraisers there
- Cannot discuss settlement or negotiations unless both parties request it
- An itemized written analysis is required.
- Must be independent and act with integrity
Why This Matters in Texas
In some Texas appraisals,
- Umpires walk properties alone
- Carriers tell umpires what to review
- Appraisers bypass written agreements
- Final awards lack itemization
- Umpires accept one side’s position without reviewing evidence.
Louisiana’s rules demand accountability.
At SPJ Adjusting, our umpires utilize the same high standards to ensure equity in every case throughout the process in Texas and Louisiana or any of the other states we serve.
Appraisal Process Expectations: More Structure, More Transparency
New Orleans, Louisiana is also standardizing how appraisers must behave in the process, including:
For Appraisers
They must:
- Disclose conflicts within five days
- Review all relevant documentation
- Work efficiently and impartially
- Produce itemized written findings
- Avoid ex parte communication with the umpire.
They cannot:
Delegating their responsibilities
Charge contingent fees
Give in to outside pressure on the award
For Umpires
They will have to:
- Stick strictly to disputed items.
- Allow both appraisers to present the evidence.
- Decide independently with detailed written rationale
This is the model that Texas homeowners and business owners need. If adopted, this structure would reduce:
- Delayed appraisals
- Biased appraiser selections
- Unexplained awards
- Behind-the-scenes influence
SPJ Adjusting already implements these standards across each appraisal we handle.
Payment Deadlines, Fees, and Accountability
One of the key points to Louisiana’s new regulations is that insurers will have to pay appraisal awards within 30 days. Texas has requirements for prompt payment, but appraisal delays often let carriers stall.
Louisiana’s model creates:
- Defined timelines
- Financial consequences for delay
- Documents that may support litigation, if necessary
This could be a game-changer for Texas policyholders in if similar rules are ever adopted in the state.
What Texas Policyholders Should Do Now
Even while these rules and regulations apply to Louisiana, Texas homeowners and commercial owners should:
- Be selective in your choice of appraisers
Many appraisers lack actual construction or estimating experience. SPJ uses seasoned professionals only.
- Demand transparency
Request itemized estimates, clear scopes of work, and conflict-of-interest disclosures.
- Avoid low-fee or contingency-based appraisers
These options introduce bias and affect the results of a query.
- Use these standards to push back against insurer-selected appraisers
If Louisiana requires competence and neutrality, why shouldn’t Texas?
- Choose an appraisal team that already adheres to the highest standards.
SPJ’s appraisal and umpire team already works under the same kind of guidelines that Louisiana’s new law does: fairness, accuracy, and integrity.
A Better Model for Texas Appraisals – Available Right Now Through SPJ Adjusting
Whether you’re dealing with:
- Hail damage
- Roof replacement disputes
- Hurricane or windstorm claims
- Smoke or fire damage
- Water and ensuing loss
- Large commercial claims
SPJ Adjusting brings expertise that meets and exceeds Louisiana’s new standards right here in Texas.
If Texas ever adopts similar regulations, we’re already operating at that level. And until then, our clients get the benefit of the industry’s strongest standards regardless of state law.
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