What is the purpose of the Appraisal process in an insurance claim?

The Appraisal process in an insurance claim is specifically designed to address disputes that arise between the Insured and the Insurer regarding the amount of the settlement offered for a claim. This process typically comes into play when there is disagreement over the valuation of the loss or damages incurred.

During the Appraisal, both parties will usually select an appraiser, and these appraisers work together to evaluate the claim and determine a fair settlement amount. If they cannot agree, a neutral third appraiser can be appointed to help resolve the difference. This mechanism helps ensure that both parties have a clear and fair method to resolve valuation disputes without resorting to litigation.

The other options provided do not accurately capture the primary function of the Appraisal process. For instance, assessing the Insured's eligibility for coverage pertains to policy conditions and does not relate directly to the valuation of a claim. Verifying the insured value of the property and reassessing insurance premiums are also separate processes that do not specifically involve resolving disputes over settlement amounts. Thus, the focus of the Appraisal process is critically on negotiating and finalizing the amount of settlement between the Insured and the Insurer.