difference between an insurance adjuster and an appraiser

Recently updated on September 10th, 2023 at 03:19 pm

Insurance adjusters and appraisers are both professionals who work in the insurance industry, but they have different roles and responsibilities. An adjuster investigates, negotiates, and settles claims arising under insurance contracts, while an appraiser is selected or appointed to ascertain and state the true value of goods or real estate. Adjusters work on behalf of insurance companies or insured persons, while appraisers are field representatives of a firm who gather information about a claim. Adjusters determine the settlement amount paid by consulting with experts, interviewing claimants, and preparing documentation for an examiner to review, while appraisers determine the value of goods or real estate and may refer to repairs or auto body shops to help determine the estimated costs of repairs after an accident. Qualifications for both positions are similar, with additional credentials often necessary for public adjusters.

Here are the differences between an insurance adjuster and an appraiser based on the search results:

Insurance Adjuster:

• Acts on behalf of an insurance company or an insured person to investigate, negotiate, and settle claims arising under insurance contracts.
• Determines the settlement amount paid by consulting with experts, interviewing the claimants, and preparing the documentation for an examiner to review.
• Sometimes does the initial work of inspecting damage after an accident.
• May work independently in the public sector where they negotiate on behalf of the claimant instead of the insurer.
• Qualifications for an insurance adjuster are similar to those of an appraiser, with additional credentials often necessary for public adjusters.

Insurance Appraiser:

• Is the field representative of a firm who gathers information about a claim.
• Is selected or appointed to ascertain and state the true value of goods or real estate.
• Determines the value of your vehicle and the estimated cost of repairs.
• May refer to repairs or auto body shops to help determine the estimated costs of repairs after an accident.
• Must be impartial and give a professional, disinterested opinion on the value of a loss.
• Is typically a professional like an adjuster, contractor, engineer, or anyone with relevant, specialized knowledge.

In summary, an insurance adjuster investigates, negotiates, and settles claims, while an appraiser determines the value of goods or real estate. While there may be some overlap in their roles, they have different responsibilities in the insurance claims process.

In what situations would you need to work with an insurance appraiser versus an insurance adjuster

When it comes to insurance claims, there are situations where you may need to work with an insurance appraiser versus an insurance adjuster. An insurance appraiser is responsible for determining the value of your vehicle and the estimated cost of repairs, while an insurance adjuster is responsible for determining if the insurer should pay for the damages to your vehicle and for how much[1][6]. Here are some situations where you may need to work with one or the other:

When to work with an insurance appraiser:

• To determine the value of your vehicle and the estimated cost of repairs after an accident[1][5]
• When you and your insurer cannot agree on the amount of your loss and you need to hire an appraiser to help resolve the dispute[5]

When to work with an insurance adjuster:

• To determine if the insurer should pay for the damages to your vehicle and for how much[1][6]
• To negotiate a settlement amount with the insurer on behalf of the claimant[6]

It’s important to note that some adjusters may also do the initial work of inspecting damage after an accident, but they more often do the follow-up research to determine the settlement amount paid[6]. Qualifications for both positions are similar, with additional credentials often necessary for public adjusters[6].

What qualifications do insurance appraisers and adjusters need to have

Qualifications for insurance appraisers and adjusters vary depending on the type of work and the state where they work. However, a high school diploma or equivalent is typically the minimum educational requirement for entry-level positions in insurance appraisal and adjusting[2][4][5][6]. Some employers prefer applicants who have a Bachelor’s Degree in Insurance or some insurance-related work experience or vocational training[2][3][6]. Auto damage appraisers typically have a two-year postsecondary diploma in automotive mechanics or experience working in an auto repair shop identifying and estimating the cost of automotive repair[2]. Many states require insurance appraisers to obtain an appraiser’s license[6]. Adjusters need to be at least 18 years old and hold a valid driver’s license[1]. Some positions may require additional training or certification, such as proficiency in Xactimate[1][5]. As they gain experience, many adjusters will specialize in a certain type of work or claim, such as CAT, auto, workers’ comp, or marine[1].

How do insurance appraisers and adjusters work together to process a claim

Insurance appraisers and adjusters work together to process a claim through the appraisal process. Here is how they work together:

• When the policyholder and the insurance company fail to agree on the amount of loss or the scope of damages, either party can initiate the appraisal clause[1].
• Each party hires and pays for an appraiser of their choice[3].
• An appraiser is a competent and disinterested professional who will evaluate the claim and value of the property or amount of the loss[1].
• The two appraisers, one from the policyholder and one from the insurance company, work together to agree on the value of the claim damages[2][4].
• If the appraisers are unable to agree, they will select an umpire who will make a final decision[2].
• Once the appraisers agree on the value of the claim damages, the insurance company will pay the agreed-upon amount to the policyholder[5].
• Insurance adjusters investigate the claim, contact relevant parties, review photos or videos related to the claim, and determine the amount of loss[6].
• Insurance appraisers can be adjusters, contractors, engineers, or anyone else who is competent to value and determine the amount of loss[1].

What happens if the appraisers cannot agree on the value of the claim

Insurance appraisers and adjusters work together to process a claim through the appraisal process. Here is how they work together:

• When the policyholder and the insurance company fail to agree on the amount of loss or the scope of damages, either party can initiate the appraisal clause[1].
• Each party hires and pays for an appraiser of their choice[3].
• An appraiser is a competent and disinterested professional who will evaluate the claim and value of the property or amount of the loss[1].
• The two appraisers, one from the policyholder and one from the insurance company, work together to agree on the value of the claim damages[2][4].
• If the appraisers are unable to agree, they will select an umpire who will make a final decision[2].
• Once the appraisers agree on the value of the claim damages, the insurance company will pay the agreed-upon amount to the policyholder[5].
• Insurance adjusters investigate the claim, contact relevant parties, review photos or videos related to the claim, and determine the amount of loss[6].
• Insurance appraisers can be adjusters, contractors, engineers, or anyone else who is competent to value and determine the amount of loss[1].

Citations:
[1] https://www.ziprecruiter.com/e/What-Is-the-Difference-Between-an-Insurance-Appraiser-and-an-Insurance-Adjuster
[2] https://www.teamcomplete.com/question-how-can-you-help-me-get-what-i-deserve-from-my-insurance-company/
[3] https://www.dfs.ny.gov/insurance/ogco2001/rg102131.htm
[4] https://ae21.com/blog/2022/12/13/whats-the-difference-between-an-automobile-insurance-adjuster-and-appraiser/
[5] https://www.berryinsurance.com/blog/auto-adjuster-vs.-auto-appraiser
[6] https://www.avnergat.com/insurance-claims/insurance-appraiser/