After a fire claim, either party invokes the appraisal clause. What will the appraisal decide?
Explanation
Appraisal is a valuation mechanic rather than a coverage forum: each side names an appraiser, the two appraisers select an umpire, and agreement by any two of the three sets the amount of the loss. Coverage questions, such as whether an exclusion applies or a condition was breached, stay with the parties and, if it comes to that, the courts. An insurer that pays an appraisal award normally keeps its right to contest coverage on other grounds.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- An inflation guard provision attached to a property policy:
- In property underwriting, a building is described as vacant rather than unoccupied when:
- A mortgagee named under the mortgage clause of a property policy holds rights that are:
- After paying a fire claim in full, the insurer takes the damaged inventory and sells what it can. This is:
- A contractor's welding starts a fire in a store. Before the insurer pays, the store owner signs a paper releasing the contractor from all liability. The likely result is that:
- A set of four matched showroom chairs is worth $2,400 as a set. A covered peril destroys one chair, and the three that remain are worth $1,500 together. Under the pair or set clause, the insurer pays:
Last reviewed: · editorial process