Home Appraisal vs. Insurance Claim Appraisal: What’s the Difference?
Many homeowners may be familiar with a home appraisal, but when dealing with an insurance claim for roof damage, they might come across a claim appraisal as well. While both processes involve assessing the value of a property, they serve very different purposes.
What Is a Home Appraisal?
A home appraisal is an assessment of a property’s overall market value. This is typically required when:
- Buying or selling a home
- Refinancing a mortgage
- Taking out a home equity loan
A licensed real estate appraiser evaluates the home based on factors such as:
- The home’s size, layout, and condition
- Recent sales of comparable homes in the area
- The neighborhood and local market trends
Lenders use home appraisals to determine how much a property is worth before approving a mortgage or loan. The appraisal ensures that the home’s value aligns with the loan amount.
What Is an Insurance Claim Appraisal?
An insurance claim appraisal, on the other hand, is used to settle disputes between a homeowner and an insurance company regarding the value of a damage claim. This process is typically invoked when:
- A homeowner believes the insurance company has underestimated the cost of repairs
- The insurer and policyholder cannot agree on the extent of the damage
Unlike a home appraisal, which determines market value, an insurance claim appraisal focuses solely on the cost of repairing or replacing the damaged portion of the home—in this case, the roof. The process involves:
- The homeowner and the insurance company each selecting an independent appraiser
- If the two appraisers disagree, a neutral umpire is brought in to make a final decision
- The final amount determined must be honored by the insurance company
Key Differences Between a Home Appraisal and a Claim Appraisal
| Feature | Home Appraisal | Insurance Claim Appraisal |
| Purpose | Determines market value of a home | Determines fair cost of insurance claim damages |
| When It’s Used | During home buying, selling, refinancing | When a homeowner and insurer disagree on claim value |
| Who Conducts It? | Licensed real estate appraiser | Independent appraisers chosen by both parties |
| What’s Evaluated? | Entire home, neighborhood, market trends | Specific damage (e.g., roof damage after a storm) |
| Outcome | Determines home’s worth for loan or sale | Determines final claim settlement for insurance payout |
Why Understanding the Difference Matters
Many homeowners mistakenly think that an insurance claim appraisal is the same as a real estate home appraisal, but they serve completely different purposes. If you’re dealing with roof damage and an underpaid insurance claim, the claim appraisal process is the right tool to ensure you receive a fair settlement—not a real estate home appraisal.
Hardy Built: Your Partner in Roofing Claims
At Hardy Built, we specialize in helping homeowners navigate the insurance claim process. If your insurance company has undervalued your roof damage, we can assist in getting a fair evaluation through the claim appraisal process. Contact us today to learn more about your options and ensure your home is properly restored!
