What is required for an appraisal to take place?

For an appraisal to take place, a definite disagreement must exist between the parties involved regarding the value of the loss or the amount of damage. In the context of insurance claims and appraisals, this disagreement typically arises when the insurer and the insured cannot agree on the assessment of damages or the valuation of property.

The appraisal process is designed to resolve this dispute, allowing both parties to engage appraisers who will independently assess the value in question. Following the appraisal, the findings can help facilitate a resolution to the disagreement, making it an essential step when a dispute arises. This means that without a disagreement, there would be no necessity for an appraisal, as both parties would already be in agreement on the matter.

The presence of a neutral party is beneficial to ensure fairness, but it is not a requirement for the appraisal process to be initiated. Similarly, while both parties agreeing on the outcome is important for final resolution after the appraisal, it is not a precursor for starting the process.