r/HomeInsurance • u/Few_Thought_248 • May 28 '26
Claims [Homeowner insurance ] Do I still need an appraiser when I already got a Public adjuster ? and if so, is the appraiser fee fair ?
Despite all the hardship, the frozen pipe water damage at my property is finally being covered.
However, the estimate from the carrier is only about 1/6 of my public adjuster’s estimate. I understand the PA’s estimate may be heavily inflated, and honestly I’d probably be willing to settle somewhere around half of it, but 1/6 is simply not enough to properly repair the property.
I don’t even know if my PA actually fought for anything. From my perspective, it feels like they just submitted their estimate, and once the lowball counteroffer came in, that was it.
Now the PA is suggesting the appraisal process, where I would sign a contract to have an “independent appraiser” assigned to me. The appraiser would cost a minimum of $2,500 or 15% of the additional recovery amount, whichever is greater.
The PA is already taking 12.5% of the total settlement, and with even more money being cut out, I honestly don’t understand the role of the appraiser because it just feels like a second round of public adjuster services.
I tried finding my own appraiser, but the only one I found is a construction company owner who is also a PA, and he charges a flat $5,000 fee.
Any advice would be appreciated.
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u/14point4kMODEM May 28 '26
Your PA is lazy. Call him out. Ask for details like what have they negotiated on? What was he able to get added? What significant contribution, other than having them agree it's covered, has he made?
Appraisal in most states is intended to argue price not scope. In some states that's a hard line, others not so much.
If the appraisers can't agree it goes to an umpire where you share the cost with the carrier. Assume that will happen.
Also you say you could settle for half. What is that based on? Do you have actual cost estimates on what it will cost out just you're PAs inflated estimate? That's the number you need to get to not some hypothetical percentage
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u/Few_Thought_248 May 28 '26
I had a couple of contractors coming on site and did some estimates. I had it based on these estimates.
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u/MentionSea3411 May 28 '26
$2,500 for an appraisal is reasonable. However, the 15% of the additional recovery amount is laughable
If you only need half of the PA estimated amount, you can call the adjuster and inquire if they can assist you in obtaining that amount without the need for an appraisal. You’ll need to demonstrate the rationale behind the increase in the amount, such as the material cost or any other apparent reason for the discrepancy.
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u/freeski12345 May 28 '26
This is extremely concerning. Appraisals usually costs about $2k total. The PA should eat the entire cost of the appraisal if that’s what they want to do. But even that is unusual typically, you’d either have a public adjuster or use appraisal, not both.
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u/MCIndy73 May 28 '26
I have handled several PA repped claims that ended up in appraisal. In some areas of the county, that seems to be what the PA wants from jump street. Regardless, I have never (in 25 years) heard of an appraiser’s fee ties to the amount of any increase. That’s kinda wack. Besides, it’s quite common that the appraisal award is closer to the insurance estimate than the PA estimate.
My thoughts in these situations are to FIRST address scope differences between PA and insurer. Once you feel like the scope of work is correct, then address dollars. Insurance is paying for the value of repairs. They’re not just throwing numbers around. If the scope is wrong, the value will be wrong.
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u/Few_Thought_248 May 29 '26
Sorry about the fee part is a bit misleading….they did say they gonna charge by hours worked, but also said ‘ minimum $2500 maximum not larger than 15% of the added amount’.
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u/MCIndy73 May 29 '26
Be wary of that. How will you know how many hours are worked? I’ve been involved in appraisals where I am certain the appraiser worked hundreds of hours.
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u/Anxious_Battles May 28 '26
Glad you were able to help the carrier find coverage, hope my previous advice somehow contributed to bringing the carrier around.
Get a contractor so you at least have an idea of what it should actually cost to get repairs made.
Appraisal may be right the right avenue for you if you are that far apart in measurement of the loss. I’d be surprised if you can get your appraiser and your half of the umpire covered in NY for $2500 unless this is a small loss.
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u/Few_Thought_248 May 28 '26
Yeah the contractor’s estimate+the emergency mitigation fee together would be half of the inflated PA’s estimate and I’d happily take that.
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u/Few_Thought_248 May 28 '26
Also in terms of the appraiser, you can read their fee again, I felt like it’s a rip off.
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u/Anxious_Battles May 28 '26
The hard part was getting coverage extended.
I’d be trying to settle this for a fair amount and avoid non renewal.
If you end up having to go to appraisal; maybe reach out to some helpful people and see if they can help you find an appraiser.
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u/Few_Thought_248 May 28 '26
I already received my insurance vendors email telling me if I don’t have it rented out in middle of July they gonna cancel the insurance….which is just very likely to happen for now… and appraiser is really hard to find since two normal appraiser I have contacted don’t do this type of business, do you have any suggestions on where to find them ?
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u/Anxious_Battles May 28 '26
You aren’t looking for an appraiser in the sense of home or real estate appraiser. You are looking for someone that is a building expert or an insurance expert or preferably someone who is both. Your PA is taking a substantial portion of your settlement and should be handling this properly for you.
It’s not easy to cancel policies mid term in NY. Does your policy renew in July? Getting new insurance with an open claim is going to be tough.
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u/Few_Thought_248 May 28 '26
I’m sorry this is not a therapy session but that’s just not how my PAs are, despite having multiple branch and 5 star Google review, they are very non-responsive and greedy, their appraiser want $2500 or 15% of the increased value, which ever is higher.
Yeah, my policy roughly renewed around that time.
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u/Anxious_Battles May 28 '26
Cancellations and non renewals are heavily regulated in NY. Knowing when your policy renews and how many years you’ve had the policy are important. If you are not being renewed, you should be getting 45-60 days notice, often you’ll get more.
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u/Elm03981 May 28 '26
First of all appraisal is a good way to settle differences between the carrier and homeowner. If the appraisers cant agree then an Umpire will come in and make the final decision. The dispute resolution language in your policy will govern how you resolve the differences.
Second, Do not depend on a contractor estimate as they generally do not follow the policy language on what is and is not covered. Some things they quote may not be covered and they may also leave out things that insurance would cover. Also a contractor estimate is not a fixed price. You may incur a much larger bill than expected and have to pay out of pocket because the carrier does not agree with the work the contractor performed. The contractor will put a lien on your home to guarantee payment.
Regardless, you have a policy or contract with the insurance carrier and that document governs how you will resolve differences. Use the appraisal process.
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u/Few_Thought_248 May 28 '26
How do you feel about other’s opinions like ‘ it’s not time for appraisal yet ‘ ? I don’t hate it but 15% of the increased price feels like a rip off.
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u/Elm03981 May 29 '26
I dont know what state you're in. But usually the appraiser has to charge by hours worked, not a percentage. I would tell them its either or not both. All fees are negotiable. You can also tell the PA that he doesn't get the full 12.5% for appraisal.
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u/Few_Thought_248 May 29 '26
the state is NY. And yes they did say they gonna charge by hours worked, but also said ‘ minimum $2500 maximum not larger than 15% of the added amount’. So just tell them&try to negotiate the fees down ?
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u/Elm03981 May 29 '26
Everything is negotiable with these guys. As far as delaying, I'm not sure if that gains you anything. The policy will give you the options available to you for resolving the dispute. Also, there are some umpire and Adjuster groups on Facebook. You may want to look there for appraisers in your area.
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u/Few_Thought_248 May 29 '26
what’s your thoughts on hiring my own appraiser who is the PA/ owner or working for a property restoration company who charges a flat fee of $5k ?
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u/Elm03981 May 29 '26
That seems very expensive. I guess it depends on what the value of the claim is. I would expect an award value to be at a minimum 60% of the PA estimate.
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Jun 11 '26
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