What prompts the need for an appraisal under Statutory Condition 11?

The need for an appraisal under Statutory Condition 11 arises primarily from the situation where there is an inability of either party to determine the property's value. In insurance terms, particularly when dealing with property insurance, disagreements can often occur regarding how much loss occurred or how to assess the value of the insured property. Statutory Condition 11 specifically addresses scenarios where such disagreements exist and provides a structured process to resolve valuation issues through independent appraisals.

When both parties cannot agree on the value of the property at the time of a loss or at any point during the claim process, initiating an appraisal ensures that both parties have an impartial assessment, helping to maintain fairness and ensure the settlement is equitable. This mechanism is important because property values can be subjective, and having a third-party appraiser helps eliminate biases, providing clarity based on the current market conditions and property specifics.