Final answer:
When the insured tenant and the insurance company fail to agree on the amount of loss, they can engage in negotiation, mediation, or arbitration to resolve the dispute.
Step-by-step explanation:
When the insured tenant and the insurance company fail to agree on the amount of loss, it can lead to a dispute. In such a situation, there are a few possible outcomes:
- Negotiation: The parties may enter into negotiations to try and reach a mutually acceptable agreement on the amount of loss. This could involve providing additional evidence or seeking expert opinions.
- Mediation: If negotiation fails, the parties may opt for mediation, where a neutral third party helps facilitate discussions and find a resolution.
- Arbitration: In some cases, the insurance policy may have an arbitration clause. This means that if negotiation and mediation fail, the dispute will be submitted to an arbitrator or a panel of arbitrators who will make a binding decision.
It is important for both parties to understand and follow the dispute resolution process outlined in the insurance policy.