How it works
When invoked, the appraisal process:
- Each party appoints a competent, impartial appraiser
- The two appraisers agree on an umpire (or the court appoints one)
- Each appraiser reviews the damage and submits a valuation
- If the appraisers agree on an amount, that amount is binding
- If they disagree, the umpire decides; two of three signatures bind the award
When it's useful
Appraisal resolves amount-of-loss disputes. It does not resolve coverage disputes (whether a loss is covered at all).
Cost
Each party pays its own appraiser. Umpire fees and other appraisal costs are typically split.