What is an important feature of the appraisal condition in an insurance policy?

The appraisal condition in an insurance policy is a critical feature that allows for the resolution of disputes regarding the value of a loss. One of the essential aspects of this condition is that each party involved in the claim—typically the insured and the insurance company—has the right to select their own appraiser. This ensures that both parties have a representative who can objectively assess the damage and determine the value of the claim.

By allowing each party to choose their own appraiser, the appraisal process aims to establish a fair and impartial assessment of the loss. This can help facilitate a resolution when there are disagreements on the amount of the claim, as it ensures that both sides have a say in who evaluates the situation. Once appraisers are selected, they can work together to potentially agree on a figure, or if they cannot, they may then involve an umpire to further aid in the resolution.

This feature promotes fairness and neutrality in the appraisal process and helps to streamline claim handling by providing a structured method for resolving disputes concerning valuations.