Final answer:
The condition in an insurance policy that outlines how to determine the value of damaged or lost property when there's a disagreement is known as Appraisal, not to be confused with coinsurance, where costs are shared between the insured and insurer.
Step-by-step explanation:
The policy condition that stipulates how the amount of damaged or lost property will be determined when the insured and insurer cannot agree is known as Appraisal. This condition is utilized to resolve disagreements without resorting to litigation, and it involves appointing independent appraisers who estimate the loss or damage. It's important to distinguish this term from coinsurance, another term often associated with insurance policies, which is where the policyholder and the insurance company share the costs of a loss according to a specified percentage. Coinsurance encourages policyholders to insure their property to its full value to avoid paying a large portion of any loss.