After a hurricane damages a Florida homeowner's roof, the insurer and insured disagree on the repair cost. The insured invokes the policy's appraisal provision. Which statement accurately describes how the appraisal process works?

Why this is the answer

Under the appraisal condition of a Florida homeowners policy, when the insurer and insured disagree on the amount of a covered loss, either party may demand appraisal. Each party independently selects a competent, impartial appraiser. The two appraisers then select an umpire. Each side pays its own appraiser; the umpire's cost is shared equally. After inspecting the property, the panel issues written awards. An award agreed to by any two of the three (i.e., both appraisers, or one appraiser plus the umpire) is binding and determines the loss amount. Appraisal resolves only the amount of loss, not coverage disputes — those remain with the insurer or the courts. This differs from the voluntary mediation program under §627.7015.