What term describes the payment made by the insurer based on the appraised value before a loss?

The term that describes the payment made by the insurer based on the appraised value before a loss is known as Actual Cash Value. This figure represents the replacement value of an item minus depreciation. It reflects the current market value of the asset, which is what the insurer would reimburse the policyholder in the event of a covered loss, taking into account how much value the item has lost over time.

Replacement cost, which was indicated as an answer, refers to the amount needed to replace an asset with a new item of similar kind and quality, without accounting for depreciation. This means that if a policyholder suffers a loss, the insurer would pay the full cost of purchasing a new item without deducting for wear and tear.

In this context, Actual Cash Value provides a more accurate representation of what the insured will receive based on the condition and age of the property at the time of the loss. Thus, it is the relevant term for representing the insurer's payment based on the appraised value before a loss occurs.