Short Answer

In North Carolina, you enforce an appraisal clause by following the policy’s appraisal steps, naming your own impartial appraiser, and using an umpire if the appraisers disagree. If the two appraisers cannot agree on an umpire, you can ask a North Carolina court to appoint one and to compel the appraisal to proceed. After two of the three (either both appraisers or one appraiser and the umpire) sign an award, that amount of loss controls; if the insurer still will not pay, you can sue for breach of contract, including in small claims if the amount fits. Watch your policy’s internal deadlines and North Carolina’s three-year limit for contract claims.

Understanding the Problem

You are a North Carolina policyholder making a first-party diminished value claim under your auto policy’s appraisal clause. You want to know how you can move the appraisal forward when your appraiser and the insurer’s appraiser cannot agree on the diminished value and cannot agree on an umpire. Your policy says an umpire can be used and that you must pay the umpire’s costs, and you are considering small claims court if the process stalls.

Apply the Law

Under North Carolina law, an appraisal clause is a contract provision that resolves disputes over the amount of loss (here, diminished value). It does not decide coverage questions. The usual sequence is: either side demands appraisal, each side picks an impartial appraiser, the appraisers try to agree, and if they cannot, an impartial umpire decides. If the appraisers cannot agree on an umpire, a North Carolina court of competent jurisdiction can be asked to appoint one and, if needed, to compel the appraisal to proceed. The signed award of any two of the three (either both appraisers or one appraiser and the umpire) sets the amount of loss, subject to policy limits, deductibles, and coverage defenses. Contract claims in North Carolina generally must be filed within three years, and many policies have shorter internal timelines to demand appraisal or to sue, so you must track both.

Key Requirements

• Amount-of-loss dispute only: Appraisal addresses how much the diminished value is, not whether the policy covers diminished value.
• Proper demand and neutrality: Send a written appraisal demand that follows your policy; select an impartial appraiser who will act independently.
• Umpire step: Your appraiser and the insurer’s appraiser must try to agree on a neutral umpire; if they cannot, seek a court appointment.
• Court assistance: If the process stalls, file in a North Carolina court to appoint an umpire and compel appraisal; courts can stay any parallel lawsuit until appraisal finishes.
• Costs and limits: You pay your appraiser; the umpire’s fee is allocated as your policy states (some policies split, yours may assign it to you); the final award cannot exceed policy limits and is subject to deductibles.
• Deadlines: Follow any policy time limits to demand appraisal and to sue; North Carolina’s general contract limit is three years.

What the Statutes Say

• N.C. Gen. Stat. § 1-52 (Three-year limit for contract claims) - sets the general three-year deadline to file a contract lawsuit; your policy may also contain shorter internal time limits you must track.
• N.C. Gen. Stat. § 1-569.11 (Appointment of neutral) - allows a court to appoint a neutral when the parties cannot agree; courts often use similar authority to appoint an appraisal umpire when the policy provides for one.
• North Carolina Courts — Small Claims (Filing basics) - explains where and how to file small claims; note that magistrates award money but do not appoint umpires or compel appraisal.

Analysis

Apply the Rule to the Facts: You have a clear amount-of-loss dispute over diminished value, which fits the appraisal clause. You already named an appraiser and the insurer named one, but they disagree on value and an umpire. Under your policy, the next enforcement step is to petition a North Carolina court to appoint a neutral umpire and compel the appraisal to continue. Because your policy assigns you the umpire’s cost, plan for that expense unless a court reallocates costs under the policy.

Process & Timing

1. Who files: Policyholder. Where: Start with a written appraisal demand to the insurer per your policy; if impasse on the umpire, file a petition/motion in the Superior Court through the Clerk of Superior Court in your North Carolina county. What: Demand letter; if court relief is needed, a verified petition/motion to appoint an umpire and compel appraisal with the policy, your demand, correspondence, and appraiser identifications attached. When: Promptly after the appraisers fail to agree on an umpire, and within any policy deadlines to demand appraisal or sue.
2. Court appointment: The court reviews the contract, confirms the dispute is about amount of loss (not coverage), and appoints a neutral umpire; courts commonly stay any lawsuit while appraisal proceeds. Timeline varies by county docket.
3. Final step and outcome: The two appraisers and the court-appointed umpire conduct the appraisal; any two sign a written award setting the amount of diminished value. The insurer then pays consistent with the award, coverage, limits, and deductibles; if it does not, file a breach-of-contract action (small claims if within the monetary limit).

Exceptions & Pitfalls

• Coverage vs. amount: If the insurer disputes coverage (for example, it claims diminished value is excluded), a court may need to decide coverage before appraisal can set the amount.
• Untimely demand: Late appraisal demands can be rejected if the policy sets a time limit; send your demand in writing and keep proof of delivery.
• Neutrality: Appraisers and the umpire must be impartial; undisclosed bias can undermine the award.
• Cost allocation: Many policies split the umpire’s fee; yours may shift it to you. Budget for that and ask the court to follow the policy’s cost terms when appointing an umpire.
• Small claims limits: Magistrates can award money but cannot appoint an umpire or compel appraisal; use small claims only to recover a sum certain after appraisal fails or the insurer refuses to pay.
• Recordkeeping: Keep your policy, photos, repair records, and all correspondence; you will need them for the court petition and any later claim.

Talk to a Personal Injury Attorney

If you are stuck in a diminished value appraisal standoff, our firm can help you move the process forward, seek court appointment of an umpire, and protect your deadlines. Reach out today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.