Right to appraisal clause summary
Appraisal Clause
A Right to Appraisal clause is a provision often found in insurance policies that allows policyholders to dispute the valuation of a covered loss. If the insured and the insurer cannot agree on the amount of loss, either party can request an independent appraisal.
Here's a brief summary of how it typically works:
- Initiation: If there's a disagreement over the value of a claim, either party can invoke the appraisal clause.
- Appraiser Selection: Each party selects their own appraiser, and those appraisers may then agree on a neutral umpire if needed.
- Assessment: The appraisers evaluate the damages and provide their assessments.
- Final Decision: The final appraisal amount is usually binding, meaning both parties must accept it.
This clause ensures that disputes over value are resolved fairly and efficiently, helping to protect the interests of both the insured and the insurer.