All terms

Appraisal Clause

Policy provision that lets either party demand an independent appraisal when value is disputed.

Most US auto policies include an appraisal clause. When the insurer and policyholder disagree on the loss amount, either side can invoke it. Each party hires a competent, disinterested appraiser; the two appraisers select an umpire; the value any two of them agree on is binding.