What is the term for the process used by the claims department that includes an assessment of damages?

The process referred to in the context of the claims department that involves an assessment of damages is known as appraisal. In insurance, appraisal is a specific procedure that helps in determining the value of the property or the extent of loss after a claim is filed. This process usually includes a qualified appraiser evaluating the damages, which can then lead to an agreed-upon compensation amount between the insurer and the insured.

By using the appraisal method, both parties can ensure that the evaluation of damages is fair and unbiased, which is crucial in the settlement of claims. This is particularly important when there is a disagreement between the insured and the insurance company regarding the extent of damages or the value of the loss.

Other terms like arbitration, negotiation, and litigation pertain to different aspects of resolving disputes but do not specifically focus on assessing damages. Arbitration involves a neutral third party resolving disputes without going to court, negotiation refers to discussions aimed at reaching an agreement, and litigation is the process of taking legal action in court. While each of these processes may eventually relate to insurance claims, appraisal specifically highlights the assessment of damages, making it the correct term in this context.