I recently spoke at a seminar our firm hosted for public adjusters. During the seminar, I had at least three separate conversations with public adjusters who voiced their frustration with the current trends in appraisal in the Garden State and beyond. The common thread was a belief that the insurance carriers were using “bought and paid for” appraisers but they could not prove it.
Several years ago I wrote a blog about the requirements for serving as an appraiser in New Jersey, Who Can Serve as an Appraiser in New Jersey.
Basically, you have to be competent and disinterested. In other words, you have to know what you are doing and your compensation cannot be dependent upon the outcome. This is essentially the same standard in just about every jurisdiction. The question becomes, how can you be assured that the appraiser for the other side meets the qualifications?
The simple answer is to ask. When proceeding to appraisal an insured should ask for these disclosures to be made:
- Ask for a copy of their resume in order to determine their competency.
- Ask for a listing of all licenses and certifications in all jurisdictions.
- Ask for a list of all work the appraiser has done for the other side.
- Ask for a listing of all appointments as an appraiser for insurance carriers within the last three years.
- Ask for a listing of all appointments as an appraiser for insurance carriers within the last three years.
- Finally, ask for a listing of all appointments as an umpire within the last three years.
These six disclosures, if answered, will let you know the appraisal process is starting out on level playing field. I should also note that the insured’s appraiser should be prepared to make the same disclosures. The concept of appraisal is that a group of three skilled individuals, without a dog in the fight, will review a claim and resolve the dispute between the insured and the insurance carrier. The simple disclosures mentioned above will help to assure that the process plays out as it’s supposed to.
