Let’s see how adjusting and appraising are different.

Lots of people confuse appraising and adjusting but both these terms have different meanings and outcomes in the insurance industry.

Appraising a property refers to an impartial assessment and evaluation of the property’s worth in the market. Appraising can be a comparative assessment because it often compares the market value of a property with other properties in the vicinity. This evaluation then helps the property owner to formulate which kind of policy they would want to purchase for their property.

Adjusting, on the other hand, refers to estimating the compensation that a policyholder would receive after a careful inspection of their property by an adjuster, who works on behalf of the insurance company. In other words, an adjuster is someone who handles claims put forward by the insured and estimates the extent of the insurance company’s liability in case a policyholder suffers from any kind of damage.

Adjuster vs Appraiser: Key Functions

Appraiser: An Appraiser’s job is research-oriented in nature. An appraiser is someone who has the knowledge and expertise required to estimate the value of an asset. Working independently, their work focuses on evaluation and research in order to determine the true and unbiased value of an asset.

Adjuster: An adjuster’s job is more investigative in nature. As an agent working on behalf of the insurance companies, an adjuster’s main task is to inspect the claimant’s property to ascertain the damages that they have faced. Post-inspection, an adjuster’s job is to estimate the amount that the claimant will receive from the insurance company.

Focus Areas: Appraisers Vs Adjusters

Appraiser: In the case of evaluating a property, an appraiser has to be careful and aware of the aspects and characteristics of the property, as well as the vicinity. Appraising is highly comparative in nature because there are a lot parameters-like location, vicinity, ease of access- that are taken into consideration while determining the value of a property.

Adjuster: An adjuster’s focus area is solely careful inspection and investigation. Adjusting does not require comparisons of properties in the vicinity in cases of loss and damage. The primary focus for an Adjuster is the very site which is being inspected.