Can the appraisal clause be invoked during a dispute over damages?

The appraisal clause is a key provision found in many insurance policies that allows for an independent assessment of the value of damages when there is a disagreement between the policyholder and the insurer regarding the amount of loss. By invoking this clause, each party can appoint their own appraiser, and if these appraisers cannot agree on the value of the damages, they can select a third appraiser to make a final determination.

This process provides a structured and fair method for resolving disputes, ensuring that both parties have an opportunity to present their cases and have their valuations considered. This is especially important in instances where estimations of damage may be subjective or influenced by differing interpretations of policy language.

Thus, invoking the appraisal clause during such disputes is a legitimate and often beneficial approach that can help expedite resolution and is recognized in many states, including Pennsylvania.