What is the appraisal clause?
Most personal automobile insurance policies and all homeowner insurance policies have an appraisal clause. This allows disputes between the policyholder and insurer over the amount of loss to a vehicle or property to be resolved by appraisal. You and your insurer each choose an appraiser at your own expense. Each appraiser states the actual cash value and the amount of the loss. If they cannot agree on the amount of the loss, the parties then choose an umpire to make a final decision. The parties share the umpire’s fee. Appraisal is not available if your dispute is with another person’s insurer. In that case, it may be necessary to resolve the dispute in court.
