Ellen believes the value of the loss to her home is $30,000.The insurer has offered $18,000 to settle the loss.If Ellen and the insurer cannot agree on the value of the loss,which homeowners policy provision specifies how this dispute will be settled?

Question

Quizplus · Accepted Answer

The appraisal clause is a provision in a homeowners insurance policy that allows for dispute resolution when the policyholder and the insurer cannot agree on the value of a loss. The clause allows each party to hire an appraiser, and if the appraisers cannot agree on a value, they will then select an umpire to make a binding decision. This ensures that both parties have a fair say in determining the value of the loss. The other options listed do not apply to the situation of a dispute over the value of a loss.

Ellen Believes the Value of the Loss to Her Home