If the insured's amount of appraised loss is upheld under the appraisal clause, who pays the fees of the appraisal and the umpire?

In the context of the appraisal clause in insurance policies, when the insured’s amount of appraised loss is upheld, it is typically the insurer's responsibility to pay the fees associated with both the appraisal and the umpire. This is because the appraisal clause is designed to provide a fair and neutral assessment of the loss, and the insurer is essentially seeking to confirm or contest the loss amount.

Under most standard insurance policies, if the appraisal clause is invoked, the insurer agrees to bear the costs of the appraisal process, including the fees for the umpire if one is needed to resolve any disagreements between the two parties’ appraisers. This arrangement serves to incentivize a prompt and fair resolution of claims without placing additional financial burden on the insured.

The other choices do not align with standard industry practices regarding appraisal fees, as it is generally understood that the insurer should cover these costs to maintain fairness and simplicity in resolving disputes.