When two appraisers in a property insurance dispute cannot agree on the value of a loss, the appraisal clause found in most policies calls for a third, neutral participant known as an umpire. Understanding what an umpire actually does helps both policyholders and insurers know what to expect once appraisal is underway.
An umpire is typically brought in only after the appraiser chosen by the policyholder and the appraiser chosen by the insurance company have already tried, and failed, to agree on every item in dispute. The two appraisers usually select the umpire together from a shared list of qualified candidates. If they cannot agree on who that should be, many policies allow either party, or a court, to have one appointed instead.
Once selected, the umpire’s job is narrow and specific: review the areas where the two appraisers disagree, weigh the evidence and estimates each side has put forward, and help reach a final figure. A good umpire does not act as an advocate for either the policyholder or the insurer. The role is meant to be impartial, focused only on arriving at a fair and accurate value for the disputed items, based on the facts and documentation in front of them.
In many appraisals, the final award is valid once it is signed by any two of the three participants, meaning an appraiser from each side plus the umpire, or in some cases the two original appraisers reaching agreement on their own. This structure is designed so that no single party, including the umpire alone, can dictate the outcome.
Because umpire selection and procedure can vary by policy and by state, it is worth reading the specific appraisal clause in your own policy to understand exactly how umpire selection and decision making will work for your claim.
This article is general education about the umpire role in property insurance appraisal and is not legal advice about any individual claim. For guidance specific to your situation, consider speaking with a qualified professional or reviewing your policy directly.
Russ Lis is a working property insurance appraiser and umpire based in the Twin Cities, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.