When can a policyholder request an appraisal of the loss?

A policyholder can request an appraisal of the loss when both parties cannot agree on the value of the claim. This process is typically outlined in the insurance policy's terms and is designed to resolve disputes regarding the valuation of losses.

In situations where the insurer and the insured have differing opinions on the amount of the loss, initiating an appraisal can provide a fair and impartial assessment. The appraisal process usually involves both parties selecting their own appraisers, who then work together to determine the value of the claim, providing an effectively neutral resolution.

This method is beneficial as it helps avoid prolonged negotiation or litigation and is generally faster than going through the courts. It emphasizes the importance of cooperation between the insurer and policyholder when it comes to disputes over claims values. Thus, the option that specifies this mutual need for agreement captures the essence of the appraisal process in insurance claims.