What is a Appraisal Clause?

Full definition

The appraisal clause is a section in most HO-3 insurance policies allowing either party (insurer or homeowner) to invoke binding 'appraisal' when they can't agree on claim scope or settlement amount. Each side appoints an independent appraiser; a neutral umpire decides any disagreements.

Invoking the appraisal clause bypasses litigation and is faster + cheaper than going to court. Often used when an adjuster lowballs scope significantly.

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