What process is used to settle disagreements on the percentage of loss between the insured and insurer?

The appraisal process is specifically designed to resolve disputes concerning the percentage of loss that an insured party claims versus what the insurance company recognizes. This method involves each party selecting an appraiser, and these professionals then assess the damage or loss in question. If the appraisers cannot agree on the loss amount, a neutral third appraiser, often referred to as an umpire, is brought in to help reach a consensus. This structured approach provides a systematic way to evaluate claims and leads to a fair resolution based on tangible assessments rather than ambiguity or further negotiation.

Other processes listed, such as mediation and arbitration, serve different purposes. Mediation involves a neutral third party who helps facilitate a discussion and potential agreement but does not make determinations. Arbitration is a more formal process than mediation, where an arbitrator makes binding decisions, but it is typically not focused solely on loss assessment. Negotiation relies on direct discussions between the parties without formal processes or third-party involvement, which can lead to disagreements without resolution. Therefore, the appraisal process is uniquely suited for addressing and settling disputes specifically related to loss percentages in crop insurance claims.