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Not every request to serve as an appraiser or umpire should be accepted, and knowing when to say no is as much a part of professional competence as knowing how to measure a roof slope. Conflicts of interest are the most common reason. An appraiser who has a prior business relationship with one of the parties, who has worked as a contractor on the property in question, or who has a family connection to an adjuster or policyholder involved in the claim faces a real or apparent conflict that most professional guidelines and many state statutes address directly. Declining in these situations protects the integrity of the process far more than pressing ahead and disclosing the relationship after the fact.
Competence is the second major reason to decline. Property insurance claims cover an enormous range of construction types, from a slate roof on a century-old Saint Paul home to a pole barn in rural Minnesota with post-frame construction and metal roofing. An appraiser asked to evaluate damage on a building system outside his or her working knowledge, whether a commercial curtain wall, an agricultural structure, or specialized equipment, should say so plainly rather than attempt to learn the subject matter on the client’s time. Some engagements call for a different appraiser altogether, or for a panel that includes someone with the relevant specialty experience.
Capacity and independence also matter. An appraiser who is already engaged by one of the two parties on a related claim, or who cannot commit the time a case requires because of an existing caseload, should decline rather than accept and then perform the work poorly. Financial arrangements that would tie compensation to the outcome of the appraisal, rather than to the time and expertise involved, are themselves grounds to decline the engagement as structured, even if the appraiser is otherwise willing and qualified to do the work.
Declining an engagement is not a judgment about either party’s position in the underlying dispute. It is simply an acknowledgment that the appraisal process depends on the person filling the role being suited to it in every relevant respect. A short, direct explanation of the reason for declining, offered early, allows the parties to select someone else without losing significant time, and it leaves the door open to work together on a future matter where no such conflict exists.
Declining well also involves how the decision is communicated. A vague refusal invites speculation about the real reason, while a candid explanation, even a brief one, allows the requesting party to address the issue directly if possible or move on to another qualified professional without delay. Some appraisers maintain a short list of colleagues suited to particular property types or regions and offer a referral when declining, which serves the parties without requiring the original appraiser to take on work outside appropriate bounds. This kind of professional courtesy costs little and helps the overall system function, since claims move faster when qualified people are matched to the cases that fit their experience from the outset.
This article is general education about how the appraisal process commonly works. It is not legal advice, and specific procedures can vary by state and policy.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Contact Appraisal Resolution.