What Is An Umpire: A primer
An umpire is a competent, disinterested, impartial individual who is charged with making a decision regarding the value of property or the amount of a property loss.
What Is An Appraiser: A primer
An appraiser is part of a three member panel who is a competent, disinterested and impartial individual who is charged with representing the insurance company or insured in the negotiation and settlement of the insurance claim. This includes both commercial and residential property damages, loss of use, mold remediation and emergency services.
How is the appraisal process invoked?
The mechanism by which the insured or the insurer may invoke the appraisal process is specifically delineated in the insurance contract.
What matters may be resolved in the appraisal process?
Generally speaking, the appraisal process is not to resolve issues of coverage or liability, but it is the proper methodology for resolving valuation issues, such as the amount of the loss or damage, or the amount necessary to repair or replace property lost or damaged.
An ideal umpire:
• Will render a timely and impartial decision.
• Is competent.
• Observes high standards of conduct.
• Has integrity.
• Has the ability to render an intelligent decision.
• Commands respect.
• Recognizes a responsibility to the public.
• Guards the integrity and fairness of the appraisal process.
• Can promote an efficient and just process.
• Is able to maintain the confidentiality of the process.
• Is trustworthy.
What is the appraisal process?
The appraisal process is a contractual process for resolving valuation issues. Appraisal provisions have been included in insurance contracts for over 100 years. Most appraisal clauses in insurance contracts provide that if the insurer and the insured cannot agree on the value of the property or the amount of the loss, either party may make a written demand for an appraisal. Each party then selects their own appraiser and the appraisers perform their own independent evaluation. Prior to the evaluation, the umpire is selected by the appraisers or the Court is petitioned to appoint an umpire. If the two appraisers can agree on the value of the property or the loss, that amount is established and the process is concluded. If they cannot agree on the value of the property or the amount of the loss, then the matter is submitted to the Umpire for resolution. The Umpire’s decision becomes binding only by a majority agreement (2 of 3).