What occurs during an appraisal condition in a dispute over a loss amount?

During an appraisal condition in a dispute over the amount of a loss, both parties involved—the insurer and the insured—are allowed to hire their own independent appraisers to assess the loss. This process is designed to provide an unbiased evaluation, as each party's appraiser will assess the damage or loss independently, and their findings may differ based on their professional judgment and expertise.

The appraisal process allows for a fair resolution of disputes regarding the value of a claim without the need for legal action, which can be more time-consuming and expensive. If the two appraisers arrive at different valuations, they may agree to appoint an umpire to help reach a consensus, ensuring that both parties have a fair opportunity to present their perspective on the loss.

This method emphasizes cooperation and negotiation, helping to facilitate a solution that is acceptable to both the insurer and the insured. In this context, both parties being involved in hiring appraisers underscores the principle of equity in the claims adjustment process.