What is appraisal gap coverage?

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My realtor has explained it but I just need this dumbed down. When I offer $5,000 in appraisal gap coverage, what does that mean? Does it automatically mean I’ll pay that, or in what specific situations will I pay it?

Maybe I just don’t get what “appraise” means but the whole idea is kind of confusing.

In: 2

5 Answers

Anonymous 0 Comments

Its coverage for when the sum of money valued for the thing your filing a claim for has depreciated to be less than your claim will pay out and the gap coverage covers $ in the event that sum is less than the payout after deductible.

:edit: disregard I mistakenly thought u meant in context of an insurance claim not for an appraisal

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0 views

My realtor has explained it but I just need this dumbed down. When I offer $5,000 in appraisal gap coverage, what does that mean? Does it automatically mean I’ll pay that, or in what specific situations will I pay it?

Maybe I just don’t get what “appraise” means but the whole idea is kind of confusing.

In: 2

5 Answers

Anonymous 0 Comments

Its coverage for when the sum of money valued for the thing your filing a claim for has depreciated to be less than your claim will pay out and the gap coverage covers $ in the event that sum is less than the payout after deductible.

:edit: disregard I mistakenly thought u meant in context of an insurance claim not for an appraisal

You are viewing 1 out of 5 answers, click here to view all answers.