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An appraisal clause is a common provision in insurance policies that helps resolve disputes between policyholders and insurers regarding the value of a loss. When disagreements arise—such as the cost of repairing or replacing damaged property—either party can invoke the appraisal process. Each side selects a qualified appraiser, and the two appraisers then choose an impartial umpire.
Together, they determine the accurate value of the claim. This clause provides a fair, efficient alternative to litigation, saving time and money while ensuring a balanced resolution. Understanding the appraisal clause can protect policyholders’ rights and promote smoother insurance claim settlements.
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