The insurance appraisal clause is a provision that is typically included in property insurance policies in the United States. It is designed to provide a mechanism for resolving disputes between the policyholder and the insurance company regarding the value of property damage or loss covered by the policy.
When a dispute arises, either party can invoke the appraisal clause by sending a written request to the other party. The clause requires that each party select an appraiser to represent them, and the two appraisers then select a neutral third-party appraiser to act as an umpire. The three appraisers then work together to determine the value of the property damage or loss.
The appraisal process is binding, meaning that the decision reached by the appraisers is final and cannot be appealed. The costs of the appraisal process are typically shared by both parties.
The insurance appraisal clause is considered by many policyholders to be their best chance to resolve an insurance claim dispute, particularly when the insurance company's initial offer is considered to be inadequate. However, it is important for policyholders to understand the terms of their policy and the appraisal clause, and to seek legal advice if they have any questions or concerns.
Overall, the insurance appraisal clause is an important tool that policyholders can use to resolve disputes with their insurance companies and ensure that they receive fair compensation for property damage or loss covered by their policy.
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The insurance appraisal clause is typically found in property insurance policies, such as homeowners insurance or commercial property insurance. It is not commonly found in other types of insurance policies, such as health or auto insurance.
The appraisal clause is intended to be a cost-effective and efficient way to resolve disputes between the policyholder and the insurance company. It is often used when the two parties cannot agree on the value of the property damage or loss, or when the insurance company's initial offer is considered to be inadequate.
The appraisal process involves the selection of three appraisers - one appraiser selected by the policyholder, one appraiser selected by the insurance company, and a neutral third-party appraiser who is selected by the two appraisers. The appraisers work together to determine the value of the property damage or loss, and their decision is binding.
It is important for policyholders to understand that the appraisal process is not intended to resolve disputes over coverage or liability. If there is a dispute over whether the damage or loss is covered by the policy, or if there is a dispute over liability for the damage or loss, those issues will need to be resolved separately.
The costs of the appraisal process are typically shared by both parties. The policyholder is responsible for the cost of their appraiser, the insurance company is responsible for the cost of their appraiser, and the two parties typically split the cost of the third-party appraiser.
It is important for policyholders to review their insurance policy and understand the terms of the appraisal clause before a dispute arises. They should also consider consulting with a lawyer if they have any questions or concerns about the process.
Overall, the insurance appraisal clause can be a valuable tool for policyholders who are seeking to resolve disputes with their insurance companies over property damage or loss. However, it is important to understand the terms of the clause and to seek legal advice if necessary.