What is the role of an 'appraisal' clause when the insured and insurer disagree about the amount of a loss?

The appraisal clause in many property policies provides a method to resolve disputes specifically about the amount (value) of a covered loss — not about whether coverage applies. Typically, each party (insured and insurer) selects a competent, independent appraiser; the two appraisers then choose an umpire; and an agreement between any two of these three parties establishes the amount of loss. This process avoids litigation over valuation disagreements. It addresses the loss amount only; coverage disputes are handled differently. Understanding the appraisal clause as a structured valuation dispute-resolution mechanism is standard claims content on the property insurance exam.