Grouser, are you getting the bike repaired or are you getting a "Declared Value" insurance policy (where you tell them what your bike is worth, and that is the amount that they will pay you if it is totaled or stolen)? Since it is an appraisal rather than an estimate for repair it sounds like it's for a declared value policy. My insurance company explained to me that if the value you "declare" the bike to be worth is significantly more than they think it should be worth, they would require an appraisal to prove it's really worth that much. They can't really use NADA and other resources like that because if the value you are declaring is that high due to a lot of customizing, etc, NADA can't give them an accurate figure, and the insurance people aren't qualified to know the value of pristine customized bikes. If this is the case, I think the dealership is justified in charging $100 for the time it will take them to due a professional and accurate appraisal of it's value since this will involve a lot more than just some guy in the shop eyeballing it and giving his opinion.
1987 Softail Custom, stock except for added chrome, and still running like new after 100,000 miles.