What process is used to assess property to determine the correct amount of insurance or loss payment?

The appropriate process used to assess property for determining the correct amount of insurance or loss payment is known as appraisal. In the context of insurance, an appraisal involves a systematic evaluation of a property to establish its fair market value or the extent of damage to determine compensation sums. It typically includes an inspection of the property and consideration of factors such as its condition, location, and any relevant market data.

Appraisals are particularly useful in disputes between insurers and policyholders regarding the value of a loss or damage, as they provide an objective assessment from qualified appraisers. This process helps ensure that both parties arrive at a fair and equitable settlement amount based on the specific characteristics and condition of the insured property.