Insurance Appraisal Glossary

Appraisal clause: The policy provision that lets either side demand appraisal when the policyholder and the insurer disagree on the amount of a loss.
Appraisal demand: The written request, by either side, that starts the appraisal process under the clause.
Party-appointed appraiser: The appraiser each side names. Each values the disputed loss and tries to agree with the other appraiser.
Umpire: The neutral third member of the appraisal panel, chosen by the two appraisers or by a court, who decides the items the appraisers cannot agree on.
Appraisal panel: The two party-appointed appraisers and the umpire.
Appraisal award: The written decision on the amount of loss. Under most clauses, an award signed by any two panel members sets the amount.
Amount of loss: The dollar value of the damage. This is what appraisal decides.
Competent: Qualified by knowledge and experience to value the type of loss in dispute.
Impartial: Not favoring either side. Many homeowners policies require a competent and impartial appraiser.
Disinterested: Having no financial or personal stake in the outcome. Some policies use this word instead of, or in addition to, impartial.
Independent: Free of control by either party. Policies and courts give the word different weight.
Actual cash value (ACV): The value of damaged property at the time of loss, usually replacement cost less depreciation, as the policy defines it.
Replacement cost value (RCV): The cost to repair or replace damaged property with material of like kind and quality, as the policy defines it.
Coverage dispute: A disagreement about whether the policy covers a loss at all. Generally decided by the parties or a court, not by appraisal.
Conflict check: A review, before accepting an assignment, of any relationship with the parties, counsel or appraisers on the claim.

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