The appraisal clause in a property insurance policy is a provision that allows for the resolution of disputes over the value of a property or the amount of a covered loss. If the policyholder and the insurance company cannot agree on the value of the property or the extent of the loss, they can invoke the appraisal clause to reach a fair and impartial decision.

This clause typically involves the appointment of two independent appraisers, one chosen by the policyholder and the other by the insurance company. These appraisers work together to determine the value of the property or the amount of the loss. If they cannot reach an agreement, they may select an impartial umpire. The decision reached by the appraisers or umpire is binding and helps expedite the claims process.

Overall, the appraisal clause provides a mechanism for resolving valuation disputes in a more objective and efficient manner, benefiting both the policyholder and the insurance company by ensuring a fair settlement.