Arbitration
Definition:
A process for resolving disputes through a neutral third party instead of going to court.
Explanation:
Some insurance policies require arbitration for claim disagreements. The arbitrator’s decision may be binding, depending on the policy language.
Example:
If your claim for roof damage is denied and you dispute it, arbitration may be required instead of filing a lawsuit.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.