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Appraisal Clause

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Appraisal Clause
In insurance, a clause in a policy giving both the insurance company and the policyholder the right to demand an appraisal to determine the value of an insured property. This protects both parties in the event of a dispute over the value of a loss.


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The claims are being reopened as insureds invoke the appraisal clause of their policies, something seldom done before Katrina.
If the consumer's insurance policy has an appraisal clause and an independent appraisal results in a value higher than the final offer by the insurance company, the insurance company has to pay the reasonable cost of the appraisal.
Also, bad faith claims fall outside the scope of an appraisal clause and will have much greater value if placed before a jury.
 
 
 
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