Contradictory appraisal and third expert: what to do if you reject the insurer's assessment (art. 38 LCS)

When the amount offered by the insurer does not cover the real damage, the policyholder is not obliged to accept it. Article 38 of the Spanish Insurance Contract Act (LCS, Law 50/1980) sets out a specific procedure to resolve disputes over the amount: the contradictory appraisal.

What the contradictory appraisal is

Each party appoints an expert. If both experts reach agreement, it binds policyholder and insurer and is recorded in a joint report. If there is no agreement, a third expert is appointed by mutual consent (or, failing that, through the courts). The report of the three —or of the third— determines the indemnity.

Deadlines you should not let slip

Article 38 sets a strict timeframe. From the moment disagreement is notified, each party has a period to appoint its expert; if the policyholder, when required by the insurer, fails to appoint one in time, they will be bound by the insurer's expert. So, faced with an insufficient offer, appointing a party expert should not be delayed.

What a party-appointed expert adds

The party expert does not merely put forward a different figure. They document the origin and extent of the damage with a verifiable methodology, contrast the items undervalued or excluded by the insurer and set a defensible valuation. In construction losses —fire, water damage, structural pathologies— the difference is usually substantial.

Frequently asked questions

Who pays for the third expert?
The third expert's fees and the costs of the contradictory appraisal are shared under article 38 LCS: each party pays its own expert, and the third expert's costs are distributed according to the outcome.

Can I also use my report in court?
Yes. If the article 38 procedure does not resolve the dispute, the party report is expert evidence in court proceedings under the Civil Procedure Act.

Is it the same as claiming directly?
No. It is the route provided in the policy itself for disputes over the amount. Exhausting it properly strengthens the policyholder's position.