Which function can be accomplished using the Appraisal clause of a policy?

The appraisal clause in an insurance policy specifically provides a mechanism for resolving disputes regarding the value of covered property. This clause allows the insured and the insurer to each select an appraiser, with these appraisers then working together to assess the value of the loss or the property in question. If the appraisers cannot agree on a value, they may select a neutral third-party umpire to help reach a final decision.

While the appraisal process can indirectly influence legal matters related to damages (as it helps clarify the value of claims), its primary purpose and function are oriented towards resolving disputes about value, which is consistent with the fundamental role of the appraisal clause in insurance policies. The binding nature of the appraisal decision on the parties comes as a result of the process but is not a direct function of the appraisal clause itself; rather, it is a consequence of the completion of the appraisal process.

Thus, the most accurate answer is that the appraisal clause serves to resolve disputes about the value of covered property, making this the correct choice.