Policy Structure & ProvisionsQuestion 464 of 474
The insured and the insurer agree the fire loss is covered but cannot agree on its dollar amount. Under the appraisal condition:
a.A court names one appraiser for both parties
b.The insurer's adjuster sets the final figure
c.The insured must accept the estimate or sue at once
d.Each picks an appraiser and the two pick an umpire
Explanation
Either party may demand appraisal. Each side chooses and pays its own competent appraiser, the two appraisers select an umpire, and an amount agreed to by any two of the three sets the amount of the loss, with the umpire's cost shared. Appraisal settles value only; whether the loss is covered at all stays a coverage question the process cannot decide, so it is not a substitute for a coverage dispute.
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