Property Insurance FundamentalsQuestion 242 of 474
The appraisal clause resolves a dispute over the amount of a loss in this way:
a.The appraisers decide coverage and loss amount
b.The insurer's own appraiser decides, subject to appeal
c.An umpire chosen by the insurer decides it alone
d.Two appraisers pick an umpire; any two agreeing decide
Explanation
Each party selects and pays its own competent appraiser, the two appraisers choose an umpire, and an agreement signed by any two of the three sets the amount of loss. Letting one side's appraiser or a one-sided umpire decide would defeat the balance the clause is built on. Appraisal settles value only; whether the loss is covered at all stays with the policy.
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