Appraisal Clause Does Not Determine Coverage

There is language in the appraisal clause that states “If there is an appraisal, we will still retain our right to deny the claim.”

Does this mean that the appraisal is not binding and the carrier can disregard the results of the appraisal?

California Subscriber

Appraisal is used only to determine value, not coverage. If the loss is determined not to be covered, the insurer is not required to pay, even if the value of the loss is agreed upon.

 

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis