Insurance Appraisers: What They Do and How to Become One
Everything you need to know about the insurance appraiser role, from the appraisal clause to certification.
An insurance appraiser is a professional appointed by a policyholder or an insurer under a property insurance policy's appraisal clause to determine the amount of a disputed loss. Each side names its own appraiser. The two appraisers try to agree on the amount of loss, and any differences go to a neutral umpire.
What does an insurance appraiser do?
- Reviews the policy, the claim file and both sides' estimates
- Inspects the damaged property and documents conditions with photos, measurements and notes
- Develops the scope of loss and prices it, usually in estimating software such as Xactimate
- Negotiates line by line with the opposing appraiser and records agreed and disputed items
- Selects an umpire with the other appraiser and presents evidence on unresolved items
- Signs the appraisal award when agreement is reached
Appraiser vs. adjuster vs. public adjuster
| Role | Works for | When involved | Job |
|---|---|---|---|
| Insurance appraiser | The party that appoints them (insured or insurer) | After either side demands appraisal | Determine the amount of loss with the opposing appraiser |
| Umpire | Neutral; serves both sides | When the appraisers cannot agree | Resolve the disputed items |
| Staff or independent adjuster | The insurer | From the first notice of loss | Investigate, evaluate and settle the claim |
| Public adjuster | The policyholder | Any time during the claim | Prepare, present and negotiate the claim |
Skills an insurance appraiser needs
- Construction knowledge: roofing, framing, interiors, mechanical systems and building codes
- Estimating: accurate scoping and pricing in industry software
- Policy literacy: RCV, ACV, depreciation, matching, overhead and profit, and the limits of appraisal
- Documentation: photos, measurements and reports that hold up before an umpire or a court
- Ethics: independence, disclosure of conflicts and truthful reporting
- Negotiation: professional, evidence-based discussion with the opposing appraiser
Do insurance appraisers have to be impartial?
Many policies require each side to choose a "competent and impartial" or "disinterested" appraiser. Courts in different states interpret those words differently: some treat party appraisers as advocates, others require real independence. Fee arrangements, prior relationships and financial interest in the outcome can all be grounds to challenge an appraiser. The safest practice is full disclosure and evidence-based work, which is what the AUA Code of Ethics requires.
How to become an insurance appraiser
- Build field experience in construction, restoration, estimating, adjusting or engineering.
- Master estimating software and learn to write a complete, defensible scope.
- Learn policy language and appraisal law, including the appraisal clause and the rules in the states you work in.
- Get trained and certified. The AUA Certified Appraiser (AUA-CA) program covers principles, valuation, process, ethics and award preparation.
- Get licensed where required. Iowa, for example, licenses appraisers and umpires.
- Keep learning through continuing education, and build a reputation for credible, well-documented work.
Become an AUA Certified Appraiser
Frequently asked questions
What is an insurance appraiser?
An insurance appraiser is a professional chosen by the policyholder or the insurer under a property policy's appraisal clause to determine the amount of a disputed loss. The two appraisers try to agree; anything they cannot agree on goes to a neutral umpire.
Is an insurance appraiser the same as an insurance adjuster?
No. An adjuster investigates and settles a claim for the insurer (staff or independent adjuster) or for the policyholder (public adjuster). An appraiser is appointed only after a disagreement about the amount of loss triggers the appraisal clause.
Is an insurance appraiser the same as a real estate appraiser?
No. Real estate appraisers estimate market value for sales and lending under state licensing and USPAP. Insurance appraisers resolve the cost to repair or replace damaged property under an insurance policy.
Do insurance appraisers need a license?
It depends on the state. Iowa licenses property insurance appraisers and umpires under Iowa Code chapter 522F. Most other states do not have a separate appraiser license, but they may regulate appraisers through statutes, regulations or case law, so check the rules where you work.
How are insurance appraisers paid?
Under most appraisal clauses each party pays its own appraiser. Fee structures include hourly rates, flat fees and, where allowed, percentage fees. Some states and courts restrict contingency-fee arrangements, so check local rules.
How do I become an insurance appraiser?
Build experience in construction, estimating or claims; learn estimating software and policy language; complete appraisal training such as the AUA Certified Appraiser program; get licensed where your state requires it; and keep up with continuing education.