Appraisal Clause

My homeowner insurance policy has an appraisal clause. What does this mean?

This clause affects your policy when you have had a loss and now need to make a claim on your insurance. This clause gives the insurance company the right to demand an appraisal on the damaged property.

Whenever you have a claim the value of the item damaged or lost is going to come into question. The insurance company can use this clause as a means of settling any dispute you may have about the value of the item.

Though we know it is not uncommon for appraisals to come in at a higher than actual replacement value it is in your best interest to have an appraisal done and to insure for that value. This is one of the ways that you take control of your insurance and can rest assured that the items that you would replace will be replaced under the insurance coverage.

Talk to your agent or broker about how best to protect the valuables that have great importance to you.