If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal and umpire equally.

If there is an appraisal, we will still retain our right to deny the claim.

It is our position that the original independent adjuster would be considered both competent and impartial since he has no financial interest in the outcome of the appraisal process and could be named as an appraiser.

If the independent adjuster is not eligible, would someone from the same independent firm be eligible?

Although the public adjuster would be considered competent, he would not be considered impartial because he does have a financial interest in the outcome of the appraisal due to his contract that compensates him based on a percent of the final settlement.

We do not believe the public adjuster is eligible to be named as an appraiser.

Texas Subscriber

The policy itself does not define who can be used as an appraiser, just that the person be competent and impartial. Generally, impartial means not favoring one side or opinion more than another. While it is not uncommon for adjusters to be appointed as appraisers under this clause, if the independent adjuster already favors one side of the claim more than the other, he probably is not impartial, even if he has no financial interest in the outcome. But, if he can show that he is competent and impartial, nothing says that he cannot be appointed.