What is Appraisal?
Insurance glossary entry on BeCovered.ai for the term "Appraisal": Policy clause letting each side pick an appraiser to resolve certain claim valuation disputes outside full litigation. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Policy clause letting each side pick an appraiser to resolve certain claim valuation disputes outside full litigation.
Understanding Appraisal
Appraisal is not for coverage determinations on all policies—only valuation where allowed. umpire selection breaks ties. Timing and waiver issues are litigated frequently.
Examples
- Hailstorm roof dispute—appraisal panel sets dollar amount for replacement scope.
- Commercial property business interruption amount disputed—check if BI is appraisable.
Common Questions About Appraisal
Appraisal vs public adjuster?
Public adjusters advocate for insured early; appraisal is formal contract process later—roles differ.
Can insurer refuse appraisal?
If conditions precedent not met or appraisal not triggered by policy language, disputes move to courts.
Related Insurance Types
Related Terms
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.
Coverage Limit
The maximum amount your insurance company will pay for a covered claim.
Actual Cash Value (ACV)
The value of property at the time of loss, calculated as replacement cost minus depreciation.
Replacement Cost
The amount needed to replace damaged or lost property with new items of similar kind and quality.