appraisal clause

Definition

Construction

  • A clause included in some property insurance policies stating that if the policyholder and the insurance company disagree over the dollar value of the loss, then both parties may hire their own independent appraiser. If these two appraisers donot agree, a third appraiser, acting as "umpire," is hired (the expense is shared by the policyholder and the insurance company), and his word is considered final.
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