What is typically covered under the appraisal provision?

The appraisal provision in insurance policies is designed to resolve disputes regarding the value of property or the amount of loss. This provision typically involves a method where each party selects an appraiser who determines the current value of the insured property at the time of the dispute. If the two appraisers cannot agree, they may choose an umpire to help reach a conclusion.

The correct answer focuses on current value assessments of insured property, which aligns with the purpose of the appraisal provision. It allows for an objective evaluation of the property's value or the extent of the damage, ensuring both the insurer and the insured can have their views considered.

Future increases in property value are not covered because they pertain to potential value changes that have not yet happened and are not relevant during the appraisal process. Estimations of current property market trends also do not fit because they involve predictions about the market rather than assessments of the current condition or value of a specific insured item. Replacement costs for damaged or lost property, while relevant in claims, are usually evaluated separately and do not fall under the appraisal provision, which specifically focuses on valuation disagreements rather than actual costs to replace or repair the property.