Appraiser
What is an insurance appraiser and umpire?
The insurance policy provides an avenue for the insured and the insurer to engage third party, disinterested individuals to independently evaluate the value of the loss. This is done through invoking the Appraisal clause in the policy. The industry is beginning to see some modifications to the language in various policies which assists to distinguish the process which must be followed by the appraiser and the umpire. It is important to be aware of those modifications and to ensure the necessary steps are followed.
An appraiser must be a disinterested and independent party that has the necessary skill to properly evaluate the value of the loss as defined within the insurance policy. The expectation is the appraiser, regardless of who has engaged the appraiser, will honestly and properly review and evaluate the total cost of the loss, whether that be replacement cost value or actual cash value. The appraiser is not responsible for interpreting the coverage under the policy and should never do so. An appraiser will present the evaluation of the value of the loss to the other party's appraiser and work to come to an agreement. This should never be a "split the difference" approach but a process to find the true answer for the value of the loss. This takes skills in negotiation and efficiency in communication.
If the two appraisers are unable to come to an agreement, the umpire (chosen by both appraisers or the court) will review the evaluations and either agree with one of the appraisers or can prepare his/her own evaluation of the value of the loss. The umpire is also available to address any procedural questions or issues during the appraisal. The ultimate goal of the umpire is to come to a proper and reasonable answer to the appraisal question being asked.
Strong Consulting is pleased to provide this disinterested and independent evaluation to both insurers and insureds as well as serving as an umpire during the insurance appraisal process.
We believe in providing the right evaluation for the right reason!