When you invoke appraisal, the person you name as your appraiser becomes one of three people who will decide the amount of your loss. That choice matters more than many homeowners realize. A capable appraiser can document a claim thoroughly, negotiate efficiently with the other side and present disputed items to the umpire clearly. A poor choice can lead to delays, a weak record or even a challenge to the award. Here is how to think about the decision.
What “competent and disinterested” means in practice
Most appraisal clauses, including those modeled on North Carolina’s standard fire policy provisions, require each appraiser to be competent and disinterested. Policies rarely define those words, so it helps to think about them practically.
Competent
A competent appraiser understands how buildings are constructed and repaired, and how repair costs are estimated. In practice, look for:
- Fluency with line-item estimating, including Xactimate or similar software.
- Knowledge of local pricing and building code requirements.
- Experience with the type of loss involved, such as roofing, water, fire or storm.
- The ability to explain an estimate clearly to another appraiser and an umpire.
Disinterested
Disinterested generally means the appraiser has no personal or financial stake that would compromise independent judgment. An appraiser can advocate for a well-supported number, but should not be so tied to the outcome that independence is in doubt. Situations that commonly raise questions include a family relationship with the policyholder, an ownership interest in the property, or being the contractor who will perform and profit from the repairs. How a court would view a specific relationship depends on the policy and North Carolina law, so if the issue comes up, ask a North Carolina attorney.
How appraisers charge
Fee arrangements vary, and it is worth understanding them before you sign.
- Flat fee. A fixed price for the engagement, sometimes tied to the size or complexity of the loss. Predictable, though it may be adjusted if the scope changes significantly.
- Hourly. You pay for time spent on inspection, estimating, negotiation and umpire hearings. Transparent, but the total depends on how the process unfolds.
- Contingency. The fee is a percentage of the award or of the increase over the carrier’s estimate.
Contingency fees for appraisers are a debated topic. Some argue they align the appraiser with the policyholder and make appraisal accessible to homeowners who cannot pay upfront. Others argue that a stake in the size of the award is in tension with the disinterested requirement, and some courts and some policy forms scrutinize or restrict those arrangements. We do not take a position for you here; read your policy, ask any appraiser how their fee arrangement is likely to be viewed under it, and get legal advice if you are unsure.
Remember also that under most policies you pay your own appraiser and split the umpire’s fee. Illustrative example: if an umpire charges $3,000 for a file, each side would typically pay $1,500 of that, on top of its own appraiser’s fee.
Questions to ask before hiring
- What types and sizes of property claims do you typically handle?
- How will you document the damage, and will you inspect in person?
- What estimating tools and price data do you use?
- Do you have any relationship with me, my contractor, the carrier or its appraiser?
- How do you charge, and what costs could be added later?
- How will you handle umpire selection if the other appraiser proposes someone?
- How often will you update me, and in what form?
- Will you put the engagement terms in writing?
Clear, specific answers are a good sign. Vague answers, or reluctance to put terms in writing, are not.
Red flags
- Guaranteed results. No honest appraiser can promise a particular award. The umpire and the other appraiser have a say.
- Legal advice. An appraiser who tells you how a coverage exclusion will be interpreted or whether you have a bad-faith claim is outside the appraisal role. That is attorney territory.
- Pressure to sign immediately. Especially after a major storm, take the time to read an engagement agreement.
- Undisclosed relationships. Ties to your contractor or to other parties should be disclosed up front.
- Taking over the claim. An appraiser’s role is the appraisal panel. Negotiating the broader claim on your behalf is the work of a licensed public adjuster or an attorney.
- No written estimate. Your appraiser should produce a detailed, line-item valuation, not just a number.
Thinking about the umpire, too
Your appraiser will help pick the umpire, so ask how they approach that step. A good umpire is experienced, impartial and willing to dig into details. Candidates should disclose prior dealings with either appraiser or carrier. If you want to understand that role in more depth, see our neutral umpire services page.
How we work
We are an independent appraisal firm. We serve as a party’s appraiser under the policy’s appraisal clause, review carrier estimates, and serve as neutral umpires. We are not a law firm and not public adjusters, so we stay focused on valuation and refer legal questions to counsel. If you are considering appraisal, our common questions page covers the basics, and you can contact us to discuss your file and our fee terms before you decide anything.