Appraisal Clause: A provision in an insurance policy that allows for the resolution of disputes over the value of property or damages by an independent appraiser. The clause typically requires both parties to select an appraiser, who then work together to determine the value of the property or damages. If the appraisers cannot agree, they may select an umpire to make a final decision. The appraisal clause is designed to provide a fair and impartial method for resolving disputes over the value of property or damages, and is commonly found in property insurance policies.
An appraisal clause is a provision in an insurance policy that allows for an independent appraisal of the value of a property or the extent of damage in the event of a claim. The clause typically requires both the insurer and the policyholder to select an appraiser, and if the appraisers cannot agree on the value or extent of damage, they will select an umpire to make a final decision. The decision of the umpire is binding and final, and the insurer is required to pay the amount determined by the appraisal process. The appraisal clause is designed to provide a fair and impartial way to resolve disputes over the value of property or the extent of damage, and it can be a useful tool for policyholders who feel that their insurer is undervaluing their claim.
Q: What is an appraisal clause?
A: An appraisal clause is a provision in an insurance policy that allows the policyholder and the insurance company to resolve disputes over the value of a property or the amount of a loss through an independent appraisal process.
Q: When can the appraisal clause be invoked?
A: The appraisal clause can be invoked when there is a disagreement between the policyholder and the insurance company regarding the value of a property or the amount of a loss.
Q: How does the appraisal clause process work?
A: When the appraisal clause is invoked, each party selects an appraiser to represent their interests. The two appraisers then work together to select a neutral umpire. If the appraisers cannot agree on the selection of an umpire, either party can request that the selection be made by a judge of a court having jurisdiction. Once the appraisers and umpire are in place, they work together to determine the value of the property or the amount of the loss.
Q: Is the decision of the appraisers binding?
A: Yes, the decision of the appraisers is binding as long as the appraisal clause process is followed according to the terms of the insurance policy.
Q: Can the appraisal clause be invoked for any type of dispute?
A: The appraisal clause is typically used for disputes over the value of a property or the amount of a loss, but it may not be applicable to all types of disputes. It is important to review the specific terms of the insurance policy to determine when the appraisal clause can be invoked.
Q: What are the benefits of using the appraisal clause?
A: The appraisal clause provides a fair and efficient way to resolve disputes between the policyholder and the insurance company, without the need for costly and time-consuming litigation. It allows for an independent assessment of the value of the property or the amount of the loss, and the decision of the appraisers is binding.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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