I am an appraiser for the insured on a commercial building fire loss. The insured has code upgrade/ordinance or law coverage of $250,000.

 The appraiser for the carrier has broken out the claim into three parts, and I agree with this division: replacement cost, actual cash value, and code upgrades. However, the other appraiser has divided every trade between what is code and what the insured already had. For example, if the electric did not meet current code and had to be replaced, the appraiser is depreciating the electric and pushing the code difference to the ordinance or law coverage and into the code column.

 I believe this is incorrect and makes a huge difference on coverage amounts for codes versus what the insurer will pay and how much is being withheld on the claim settlement.