What does the appraisal process in insurance primarily involve?

The appraisal process in insurance primarily involves estimating damages to settle claims. This process is crucial when there is a disagreement between the insured and the insurer regarding the amount of loss or damage that has occurred.

During the appraisal process, each party typically selects an independent appraiser who assesses the damage and calculates the necessary repairs or replacements. The findings from this assessment help to reach a fair settlement on the claim. The process ensures that both parties have a clear understanding of the extent of the damage, which helps facilitate a resolution.

While determining legal disputes, valuing the property to set coverage limits, and negotiating with third parties are all important aspects of the insurance business, they do not directly pertain to the appraisal process itself. The appraisal specifically addresses the quantification of damages to ensure that claims are settled appropriately.