The purpose of the appraisal clause in the Homeowners 3 policy is to
A)determine the appropriate amount of homeowners insurance to purchase.
B)set a value on the home for estate purposes if the homeowner dies.
C)settle valuation disputes between the insurer and insured after a loss has occurred.
D)determine a mortgage lender's insurable interest after a loss has occurred.

Question

Quizplus · Accepted Answer

The appraisal clause in the Homeowners 3 policy is designed to settle valuation disputes between the insurer and insured after a loss has occurred. It allows for an independent appraiser to assess the damage and determine the appropriate amount of compensation to be paid by the insurer. This helps to prevent disputes and allows for a more efficient claims process.

The Purpose of the Appraisal Clause in the Homeowners 3