What is usually the outcome of an appraisal?

The outcome of an appraisal is typically a final settlement amount for a loss. In the context of insurance, particularly property and casualty claims, an appraisal process is invoked when there is a disagreement between the insurer and the insured regarding the value of a loss.

During the appraisal, both parties present evidence to support their valuation of the loss. An impartial appraiser, often mutually agreed upon by both parties, evaluates the evidence and makes a determination regarding the worth of the claims. The appraisal's primary goal is to provide a definitive settlement figure that both the insurer and the insured can accept to resolve their differences.

This process is crucial as it allows for a fair resolution without the need for litigation or extensive disputes, ensuring that the insured receives due compensation according to the terms of the policy. Other options, such as resolving a cancellation policy, defining a new policy, or issuing a court ruling, do not directly pertain to the objective of the appraisal process, which centers solely on determining the monetary value of the loss.