Adjuster vs. Appraiser — What's the Difference?
By Fiza Rafique & Urooj Arif — Updated on April 14, 2024
An adjuster manages insurance claims, determining the extent of the insurer's liability, while an appraiser evaluates the value of property or items.
Difference Between Adjuster and Appraiser
Table of Contents
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Key Differences
An adjuster, often associated with insurance companies, plays a crucial role in handling claims. Their primary responsibility is to investigate claims, assess damage, and determine the insurance company’s liability. On the other hand, an appraiser is typically involved in assessing the value of property or items, which can be critical for insurance, sales, or taxation purposes.
Adjusters frequently interact with claimants to gather information, inspect damages, and negotiate settlements based on policy details. They ensure that claims are legitimate and that the settlement is fair, based on the terms of the policy and the assessed damage. Conversely, appraisers are focused on determining the value of an asset, whether it's real estate, artwork, or other valuable items, based on current market conditions and other factors like condition and rarity.
The role of an adjuster often requires a detailed understanding of insurance laws and policies, as well as skills in negotiation and investigation. They may work under stressful conditions, especially after large-scale disasters. Whereas appraisers must have a deep knowledge of the market and the items they are evaluating, along with a need for certification in many cases to ensure credibility and accuracy in their valuations.
Adjusters are typically employed by insurance companies or work as independent contractors handling claims for multiple insurers. Their work is pivotal in determining how much the insurance company pays on a claim. In contrast, appraisers can be employed by various organizations, such as real estate companies, art galleries, or auction houses, and their evaluations often help set purchase prices, insurance premiums, or resolve legal disputes.
Ethically, adjusters must balance the interests of the insurance company with the needs and rights of the claimant, a task that requires impartiality and fairness. Appraisers, on the other hand, must maintain objectivity in their assessments to provide accurate valuations that parties in transactions or disputes can rely on.
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Comparison Chart
Definition
Manages insurance claims
Evaluates value of property or items
Primary Role
Determine insurer's liability
Determine value for various purposes
Key Skills
Investigation, negotiation
Valuation, market knowledge
Employment
Insurance companies, independent firms
Real estate, galleries, independent
Ethical Consideration
Balance between claimant and insurer
Objectivity in valuation
Compare with Definitions
Adjuster
Evaluates and settles insurance claims.
The adjuster negotiated a fair settlement for both the homeowner and the insurance company.
Appraiser
Provides valuations for insurance or sales.
The appraiser determined the replacement cost of the stolen jewelry.
Adjuster
May specialize in a type of insurance, like auto or property.
She works as an auto insurance adjuster.
Appraiser
Expertise in market conditions and valuations.
As an appraiser, her expertise in the art market was invaluable.
Adjuster
Requires skills in negotiation and policy interpretation.
As an adjuster, his strong negotiation skills were crucial.
Appraiser
Often consulted in legal and financial decisions.
Appraisers are crucial in determining asset values for divorces.
Adjuster
Often involved in post-disaster assessments.
Adjusters are often immediately on the scene after major disasters.
Appraiser
A professional who assesses the value of assets.
The appraiser evaluated the antique furniture for the estate sale.
Adjuster
A professional who manages insurance claims.
The insurance adjuster visited the flood-damaged house to assess the claim.
Appraiser
Requires certification in many fields.
He became a certified real estate appraiser last year.
Adjuster
To move or change (something) so as to be in a more effective arrangement or desired condition
Adjust the timing of a car's engine.
Adjust a hearing aid to amplify lower frequencies.
Appraiser
An appraiser (from Latin appretiare, "to value"), is a person that develops an opinion of the market value or other value of a product, most notably real estate. The current definition of "appraiser" according to the Uniform Standards of Professional Appraisal Practice (USPAP) is: "One who is expected to perform valuation services competently and in a manner that is independent, impartial and objective." USPAP further comments on this definition: "Such expectation occurs when individuals, either by choice or by requirement placed upon them or upon the service they provide by law, regulation, or agreement with the client or intended users, represent that they comply." To be a real property appraiser in the United States, an individual must be licensed as an appraiser by the state in which they practice.
Adjuster
To change so as to be suitable to or conform with something else
Adjusted the schedule to allow for everyone's vacation plans.
Adjusted the old monetary figures to account for inflation.
Appraiser
To estimate the price or value of
Appraise a diamond.
Appraise real estate.
Adjuster
In chiropractic medicine, to manipulate (the spine and other body structures) to treat disorders and restore normal function of the nervous system.
Appraiser
To make a considered judgment about; assess or size up
Appraise a threat.
Appraised himself in the mirror.
Adjuster
To decide how much is to be paid on (an insurance claim).
Appraiser
One who performs appraisals.
Adjuster
To become adapted or accustomed, as to a new situation
Have you adjusted to working with your new colleagues?.
Appraiser
One who appraises; esp., a person appointed and sworn to estimate and fix the value of goods or estates.
Adjuster
One who adjusts, especially for the insurance industry's employment title "loss adjuster" (or "claims adjuster" in the United States).
Appraiser
One who estimates officially the worth or value or quality of things
Adjuster
One who, or that which, adjusts.
Appraiser
One who determines authenticity (as of works of art) or who guarantees validity
Adjuster
An insurance agent who examines claims against personal or property damage insurance policies and makes estimates and recommendations regarding the amount which should be paid to the policyholder.
Adjuster
One who investigates insurance claims or claims for damages and recommends an effective settlement
Common Curiosities
What does an appraiser do?
An appraiser evaluates the value of property or items for purposes like insurance, sales, or taxation.
What is an adjuster?
An adjuster is a professional who evaluates and settles insurance claims, determining the insurer's liability.
How do adjusters determine the amount to be paid on a claim?
Adjusters review the insurance policy, assess the damage, and determine the payout based on policy limits and damage severity.
Are adjusters and appraisers licensed?
Adjusters often require licensing, depending on state regulations. Appraisers typically need certification, especially in real estate.
What is the difference in employment settings for adjusters and appraisers?
Adjusters are often employed by insurance companies or as independent contractors, while appraisers work for various entities including real estate firms and auction houses.
Can an adjuster also be an appraiser?
While they are separate professions, individuals can hold qualifications for both roles, but they perform different functions.
Do adjusters work independently or for an organization?
Adjusters can work as employees of insurance companies or as independent contractors handling claims for multiple insurers.
What qualifications are needed to be an appraiser?
Appraisers generally need specific training and certification, particularly in real estate and fine arts.
Why is objectivity important for appraisers?
Objectivity ensures that the valuation is unbiased and based solely on market conditions and asset quality, which is crucial for fair transactions and legal processes.
What ethical considerations do adjusters face?
Adjusters must fairly represent the interests of both the insurer and the claimant, maintaining integrity in the settlement process.
How often do appraisers update their valuations?
Valuations may be updated periodically, especially if market conditions change significantly or for recurring insurance assessments.
What challenges do adjusters face?
Adjusters may face challenges such as dealing with complex claims, negotiating settlements under stressful conditions, and managing fraudulent claims.
What types of claims do adjusters handle?
Adjusters handle a wide range of claims, including property, automobile, health, and casualty claims.
Can appraisers specialize in certain types of property?
Yes, appraisers often specialize in areas like real estate, art, jewelry, or antiques.
How is the role of an appraiser important in real estate?
Appraisers provide crucial valuations that influence sales prices, property taxes, and insurance premiums.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
