What procedure is followed if there is a disagreement about the size of a loss according to homeowners policy appraisal condition?

In the context of a homeowners policy appraisal condition, the correct procedure in case of a disagreement about the size of a loss is for each party involved—both the insured and the insurer—to select their own appraiser. This approach ensures that both sides have a representative who can advocate for their interests and provide an independent assessment of the loss. Once each party selects an appraiser, these appraisers will work together to evaluate the damage and come to an agreement on the value of the loss.

This method promotes fairness and helps to avoid any perception of bias, as each appraiser will approach the evaluation from their respective perspectives and expertise. If the appraisers cannot agree on a valuation, the appraisal condition typically allows for the appointment of a third appraiser, who will ultimately make a binding decision. This multi-party appraisal process is crucial in ensuring that both sides feel their claims are being assessed fairly and accurately.