When an insurance carrier is party to an appraisal, it generally follows a similar process to a policyholder in selecting its own appraiser, choosing someone qualified and disinterested to represent an independent evaluation of the loss.
Carriers often look for appraisers with relevant experience in the specific type of property and loss involved, similar to the considerations a policyholder would weigh when selecting their own appraiser.
Many carriers maintain relationships with appraisers they have worked with before, based on a track record of thorough, well documented, and professionally conducted appraisals.
As with any appraiser in the process, the carrier’s appraiser is still expected to meet the competent and disinterested standard found in most appraisal clauses, meaning their evaluation should reflect the facts of the loss rather than simply advocate for the lowest possible number.
Ultimately, the appraisal process is designed to work properly when both sides, carrier and policyholder alike, select genuinely independent appraisers committed to a fair, well documented evaluation of the disputed loss.
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. If you have questions about a specific claim, review your policy language and talk with your insurance company or an attorney familiar with your state’s laws.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.