How To Hire An Insurance Appraiser

Did you know it is your responsibility to hire and compensate your own appraiser?

Hiring a qualified, unbiased appraiser has become increasingly difficult. This is because more than just the Dwelling/Building is being appraised. From the start, carriers often reduce the value of your claim, which is not typically justified. This opens many areas of coverage to the appraisal process. A well-qualified appraiser is someone with a broad understanding of policy coverage. Even though policy coverage is not part of the appraisal process, a lack of understanding of the coverage may cause portions of the appraisal to be missed. The carrier ultimately decides what is covered. If you have a loss that you feel should be covered but was denied, consulting with a lawyer may be your best option.

Versed in Emergency Service Work

A qualified appraiser will be versed in emergency service work. Often, the contractor you hired completes an estimate for services rendered. Their estimate is then sent to the carrier, who likely engages with a third-party vendor to limit the amount the contractor receives. Some updates may be justified, others not so much. A vendor then may turn around and put you on the hook for anything the carrier is not willing to compensate for. Out-of-pocket costs beyond the deductible(s) are not appropriate in the claims process. When you invoke appraisal, you may request that the emergency service portion of the claim be part of the appraisal process. This is why your appraiser must be well-versed in emergency services, including training from the Institute of Inspection, Cleaning, and Restoration Certification (IICRC).

Construction Knowledge

A qualified appraiser is versed in construction methods, practices, and code regulations. Building standards have changed throughout the years. If you own an aged building, there are very likely many code-related upgrades required to restore your property. Most policies include code coverage based on a percentage of the Dwelling/Building, typically at 10%. Ensure your appraiser captures all code-related items in their assessment to ensure you are properly restored. Going back to an insurance company after an award is executed can be a difficult process and may be outright denied.

Strong Estimator

It is also important that your appraiser be an expert within the estimating platform they utilize. An appraisal is limited to 3 people: your appraiser, the carrier appraiser, and, if necessary, a mutually agreed-upon umpire. Some appraisers utilize the demand estimate and do not write their own estimate based on the agreed-upon scope. This likely leaves money on the table and potential out-of-pocket costs on your shoulders. An appraiser should write their own assessment, supporting impartiality and demonstrating their expertise in construction methods/practices.

Personal Property

Your appraiser should be versed in personal property claims. Carriers use their preferred vendors, who typically undervalue your items and/or over-depreciate them based on assumptions. Contents/Personal Property Appraisals are becoming more a part of the process due to improper compensation from the carrier. If you hire a builder or contractor to appraise your claim, they likely have not worked on a Personal Property claim and may not have the knowledge or understanding to provide value to you in this area. This is why it is important to hire a claims professional for your appraisal. Manhattan Public Adjustment handles all aspects of coverage daily and has a broad understanding of your claim. We can initially represent your interests with a carrier, and if you reach an impasse, you can bring us in to serve as your expert in the appraisal process.

ALE

The period of restoration (POR) is an important aspect for all claims, especially when you are no longer able to occupy your residence and/or are displaced from your business. Your appraiser needs to understand how long it may take to restore your property to its pre-loss condition. The appraisal process typically extends the time you are away from your property, and ALE will apply to most appraisals. Communicate with your appraiser and provide supporting documentation for ALE-related costs, including food, travel, and any out-of-pocket expenses not typically incurred.

Strong Negotiator

Your appraiser should possess strong negotiation skills. To have strong negotiation attributes, you need a high level of understanding and technical ability to back up what you say. An appraiser wears many hats, and at any time, they require the ability to discuss all aspects of your appraisal in an educated, well-supported manner. If your appraiser leaves the opportunity for doubt on a particular topic, then it’s likely your claim value will be diminished. A strong negotiator should possess:

Active listening
Clear communication
Emotional intelligence
Preparation and research
Patience
Problem-solving mindset
Confidence without arrogance
Adaptability
Persuasion skills
Self-control and discipline
Strategic thinking
Ability to build rapport

Resources

Where can you locate an appraiser other than from Manhattan Public Adjustment? Great question. Word of mouth is the most trusted resource. Check with neighbors, relatives, or anyone who has recently gone through the appraisal process. You may also find an appraiser at the Insurance Appraiser and Umpire Association, Inc. (IAUA). The IAUA includes certified Appraisers and Umpires who may have the skills necessary to reach your desired claim outcome.

Vetting an Appraiser

Before engaging an appraiser, compile a list of questions to ask about their credentials. Below is a sample list of good questions to ask:

Do you have references?
What is your experience in the industry?
What is your success rate?
How close are you to your projected delta (Amount of loss) with past appraisals?
How often do you invoke the umpire?
Are you skilled in all aspects of claim handling?
What are your fees?
When do you expect to receive payment for the services?
Have you had an appraisal go awry?

Closing

It is overwhelming to ensure you are in good hands with your appraiser. Vetting and determining who can accurately complete the job is essential. The necessary skills of an outstanding appraiser are broad and varied. If you need assistance with your appraisal, Manhattan Public Adjustment can help. We handle all aspects of the claims process and are here to assist you if you feel your claim is not being handled accurately.