Courts will usually enforce appraisal awards absent some conduct such as fraud or
collusion. Since there are very few avenues for challenging an appraisal award,
the selection of a good appraiser is critical. Put simply, a good appraiser will help you get a
better result. In looking for an appraiser, you will want to consider their background,
experience, credentials, and character.
Background
Look for an appraiser with a background appraising the type of property involved in the
insurance claim. If this is a commercial property claim, you will want to look for someone
with a commercial construction or insurance adjusting background. If you choose
someone with an adjusting background, you likely will want to choose someone who is
or has been a public adjuster. Public adjusters represent policyholders. They can be
contrasted with independent adjusters who work for insurance companies. Unless you
have prior positive experience that tells you otherwise, you don’t want to select
someone whose only adjusting experience has been working for insurance companies
because they may have been influenced by the general trend in the insurance industry
of squeezing claims costs.
Experience
Also, look for an adjuster who has significant experience with the appraisal process and
with conducting appraisals for policyholders in that process. As a reminder, after you
name your appraiser, the insurance company will name their appraiser, and if the
appraisers do not agree on value, they will select an umpire who will decide between
them. If they can’t agree on an umpire, then one or both of the parties will need to
petition a court to appoint one. However, as a practical matter, the appraisers may want
to agree on an umpire before they develop their valuations so that they can coordinate
the process with the umpire and establish the procedures that they will follow.
Familiarity with the process will help your adjuster anticipate problems that might arise,
select a good umpire, and help establish credibility.
Credentials
There are several bodies that formally train and certify appraisers. These include the
WIND network, and the Association for Property Insurance Appraisers and Umpires.
Selecting an appraiser with a certification from WIND or IAUA can ensure that your
appraiser has the technical knowledge to be accurate and persuasive
Character
An appraiser’s character and reputation can be important assets. An ideal appraiser
should be someone that people trust and who can communicate effectively. Appraisal
will involve negotiating with the other appraiser and also communicating persuasively to
the umpire. Knowledge, integrity, and the ability to communicate go a long way. When
you are interviewing appraisers, ask yourself whether you find them knowledgeable and
trustworthy.
As always, if you have any questions or need help, contact us.