The Appraiser
Appraisers are much needed movers and shakers in the complex world of insurance. Their job goes beyond appraising the value of your home or business. They are also the ones to place a price tag on your home or business’s insurance claim. Let’s get into the nitty gritty of an appraiser’s role, a day in the life.
It’s important to note the difference between an appraisal in the property damage world vs. that of an appraisal of a home. Within the context of a home, the appraisal is commonly performed when purchasing or selling the home. In order to appraise in the property damage landscape, one must be licensed as a public insurance adjuster. In fact, there are two different licenses for each.
The mission for any appraiser can be boiled into one primary initiative: When an insurance company and policyholder are battling it out over the price tag on a claim, it’s the appraiser’s job to resolve this dispute in a civil and reasonable way. They are the ones that determine the cost of repairs approved by the insurance company.
When you hire an appraiser on your team, the insurance company will then hire its own. The cost will be split by both teams to cover an “umpire.” No, not a baseball umpire. This individual will decide which appraiser has made the right assessment of the repair’s costs.
If there is a disagreement on the cost of repairs, then comes in the “Mandatory Appraisal Clause.” This clause basically means that your right to file a law suit will be delayed unless you comply with the appraisal clause in your policy.
While appraisers are serving as the mediators and trying to settle disputes, they are not to be confused with being arbitrators. It’s very easy to confuse the term “appraisal” with “arbitration.”
Proper education and homework is helpful when undergoing an appraisal process. You must protect your investment and not pay more than you should be paying on the cost of repairs.