In an appraisal clause, who selects the appraisers and the umpire?

• A. The insured and insurer each select an appraiser; the two appraisers select an umpire
• B. The insurer selects all appraisers and the umpire
• C. The court selects all participants
• D. The insured selects all appraisers and the umpire

Answer: (A)

An appraisal clause works by having both sides take part in setting the loss value through a two-step, neutral process. Each party—the insured and the insurer—appoints its own appraiser to represent that side’s interests. Those two appraisers then jointly select a single umpire. They review the loss and attempt to agree on a value; if they do, that value is final. If they don’t agree, the umpire’s decision becomes the binding value. This arrangement keeps the process out of court and ensures both sides have input, with a neutral third party resolving any remaining disputes.