Insurance Appraiser vs Adjuster: Which One Do You Need?

If you’ve ever been caught up in the whirlwind of filing an insurance claim, you know it can be a maze. You’re not alone. In fact, insurance claims can be complicated enough that, according to the Insurance Information Institute, only 57% of homeowners believe they have adequate coverage. The confusion often stems from the roles of different professionals involved, especially when it comes to understanding the difference between an insurance appraiser vs an insurance adjuster.

Both play critical roles in the claims process, but they’re not the same. Understanding their differences can save you time, money, and frustration. Let’s break it down, answer your burning questions, and figure out who you really need when things go sideways.

What’s the Difference Between an Insurance Appraiser vs an Insurance Adjuster?

On the surface, insurance appraisers and adjusters both deal with claims, but their roles are distinct. Here’s how:

• Insurance Adjusters are typically employed by insurance companies. Their job is to assess the damage and determine how much the insurance company should pay. Adjusters act as the gatekeepers for your claim. They’ll investigate the incident, review your policy, and negotiate the settlement.
• Insurance Appraisers on the other hand, are often brought in when there’s a disagreement on the value of a loss. Appraisers work for you, not the insurance company. They assess the value of the damage and provide an independent evaluation, usually when you and your insurance company don’t see eye to eye on the settlement amount.

So, if you’re scratching your head wondering which one you need, the answer is—it depends.

When Should You Hire a Claims Adjuster?

Hiring a claims adjuster is often your first step in the insurance claim process. If you’ve just experienced a disaster, whether it’s a storm, fire, or even a plumbing disaster, your insurance company will likely send out their adjuster.

• When to rely on the adjuster: If you feel that your claim is straightforward, and you have a good grasp on your policy coverage, an insurance adjuster may be all you need. Since they work for the insurer, their main job is to assess your claim efficiently and within the parameters of your policy.

But here’s the catch: insurance adjusters are employed by the insurance company. Their goal is to minimize payouts, not maximize your settlement. That’s where things can get tricky.

When Would It Be Best to Hire a Claim Appraiser?

Now, if you’ve received a settlement offer that feels too low, or your insurer denies certain damages, it may be time to call in an insurance appraiser.

• When to hire an appraiser: You should consider an appraiser if you’re disputing the insurance company’s assessment of the damage. Maybe your adjuster low-balled the estimate, or they didn’t account for all the damages you see. An appraiser steps in as your advocate to provide an unbiased, independent valuation of the damages.

Appraisers are often used in the Appraisal Clause process, where both the insurance company and the policyholder each hire their own appraiser to resolve disputes. The two appraisers then choose a third, impartial umpire to make a final decision if they can’t agree.

What Does a Claims Adjuster Do, Exactly?

The claims adjuster plays a vital role in the early stages of your insurance claim. Think of them as the fact-finders.

• Key responsibilities:
  • Investigating the cause of damage (e.g., storm, fire, tornado, flood)
  • Reviewing your insurance policy to see what’s covered
  • Estimating the cost of repairs or replacements
  • Negotiating settlement amounts with the policyholder

A good adjuster will help move the claims process along smoothly. However, keep in mind their priority is the insurer, which means they’re looking out for the company’s bottom line.

What Does an Insurance Appraiser Do?

Unlike adjusters, appraisers don’t have a vested interest in the insurance company. Their job is to assess property values, but in a more specific context.

• Key responsibilities:
  • Independently evaluating the extent of damage or loss
  • Providing an unbiased damage estimate
  • Offering mediation in claim disputes, working as part of the appraisal process to settle differences between policyholders and insurers

Appraisers are particularly useful when you’re stuck in a stalemate with your insurer, and you need a neutral party to weigh in.

Claims Adjuster vs. Insurance Appraiser: Skills Breakdown

Both claims adjusters and insurance appraisers come with specific skill sets. Here’s a quick breakdown of what each role requires:

• Claims Adjuster Skills:
  • Strong negotiation skills
  • In-depth knowledge of insurance policies and coverage
  • Ability to investigate claims and gather evidence
  • Communication skills to work with both insurers and policyholders
  • Expertise in estimating repair and replacement costs
• Insurance Appraiser Skills:
  • Deep understanding of property values and damages
  • Independent assessment abilities
  • Knowledge of construction, damage assessment, and valuation methods
  • Mediation and conflict resolution

An appraiser is your go-to if you need a second opinion on the value of your claim, while an adjuster is your first point of contact in the claims process.

FAQs About Insurance Appraisers and Adjusters