Appraisal in the context of insurance refers to a process used to determine the value of a particular item, property, or damage for which a claim is submitted. This valuation process is conducted by an impartial expert, known as an appraiser, who assesses the condition and worth of the item in question. The appraiser’s report includes a detailed description of the item or property, the method of evaluation used, and the estimated cost to repair or replace the subject of the appraisal. In the event of a dispute between the insurance provider and the policyholder over the amount of a claim, an appraisal can serve as a means to reach an agreed settlement. It is a critical step in ensuring that the policyholder receives a fair compensation for their loss, based on the terms of their insurance policy.
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