What Is an Umpire in the Appraisal Process?
What Is an Umpire in the Appraisal Process?
Think of the umpire as a tiebreaker in the appraisal process. When the two appraisers—one chosen by the policyholder and one by the insurance company—reach an impasse, the umpire steps in to review the evidence and help determine the final amount of loss.
The goal of the umpire is to remain neutral and unbiased, making an independent assessment based on the damage, repair costs, and relevant documentation.
How Is an Umpire Selected?
The selection of an umpire is an important step in the appraisal process. Here’s how it typically works:
The two appraisers attempt to agree on an umpire. Both sides must select someone they trust to be neutral and experienced in insurance claims and property damage assessments.
If the appraisers can’t agree, a court may appoint one. If both appraisers can’t decide on an umpire, many policies allow for a judge to make the selection.
Umpires are often experienced insurance professionals, appraisers, or contractors with expertise in damage evaluation and loss valuation. Some are also trained in dispute resolution or arbitration.
When Does the Umpire Step In?
The umpire doesn’t get involved immediately. They only enter the process when the two appraisers cannot reach an agreement on the amount of loss.
Here’s what happens next:
The umpire reviews the estimates, supporting documents, and any inspections performed by the appraisers.
They may conduct their own site inspection or request additional information.
After considering both sides, the umpire issues a decision.
If two out of the three (either both appraisers or one appraiser and the umpire) agree on an amount, that decision is binding.
What to Expect When an Umpire Is Involved
The umpire’s decision can have a major impact on the final settlement. If an umpire gets involved in your claim’s appraisal process, here are a few things to keep in mind:
✅ Be prepared with strong documentation. The umpire will review all submitted estimates, photos, and reports. Having well-documented damage and repair estimates strengthens your position.
✅ The process takes time. Once an umpire is involved, it can take days or weeks for a final decision, depending on the complexity of the claim.
✅ The final decision is binding. Once two out of three panel members agree, the award is set, and the insurance company is required to pay the agreed amount (minus any deductible or policy limits).
Final Thoughts
The appraisal process can be an effective way to resolve disputes, but when the appraisers can’t reach an agreement, the umpire serves as the final decision-maker. Choosing a fair, experienced umpire is crucial to ensuring a just outcome.
If you find yourself in an appraisal process and need guidance, working with a knowledgeable appraiser can help you navigate the process with confidence. Have questions? Contact us today to learn more about how appraisal and umpire decisions work!