Appraisal Clause
Insurance Glossary
A provision in most property and auto policies that lets either side resolve a disagreement about the amount of a loss without going to court. Each party hires its own appraiser, the two appraisers choose an umpire, and an agreement between any two of the three sets the amount. It decides how much the loss is worth, not whether the policy covers it, and who may invoke it, who pays for it and whether the result is binding vary by policy and by state.
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