What is the process when an appraisal is ordered under an Appraisal Condition?

When an appraisal is ordered under an Appraisal Condition, both parties involved—usually the insurance company and the insured—select their own appraisers to ensure a fair and unbiased assessment of the claim's value. This collaborative approach allows each side to have an advocate who can represent their interests in the appraisal process.

Furthermore, the cost of the appraisal is typically shared between the insurer and the insured, which promotes a balanced representation and helps to avoid any perception of bias that could arise if only one party was responsible for the costs. This method is designed to facilitate a resolution to disputes over the value of a loss, ensuring that both parties have an equal opportunity to present their perspectives.

In contrast, scenarios where only one appraiser decides the value or where costs are solely borne by one party do not reflect the typical collaborative nature of the appraisal process and can create potential conflicts of interest. Therefore, the correct understanding of the appraisal process highlights the importance of joint involvement in both selecting appraisers and sharing the costs, reinforcing fairness and transparency in resolving disputes.