Umpire Process Guide
A practical walkthrough of the umpire stage of property insurance appraisal — selection, submission of differences, the determination, and the signed award.
When the umpire enters
The umpire is not a tiebreaker standing by from the beginning. Under a typical appraisal provision, the two appraisers first attempt to agree on the amount of loss. Only the items on which they fail to agree are submitted to the umpire, and an agreement between any two of the three then sets the amount.
That structure has an important practical consequence: everything the appraisers can agree on before the umpire is involved reduces the scope, cost, and duration of the umpire stage. Narrowing the dispute is work worth doing.
Selection
Most policies provide that the appraisers select a competent and impartial umpire, and that if they cannot agree within a stated period, either party may ask a court to appoint one. Read the provision in front of you — the mechanics and the timeframes vary.
- Document the date the appraisers began the selection discussion
- Exchange candidate names in writing
- Disclose any prior relationship with a candidate
- Record the agreed appointment, or the date agreement failed and the request that followed
- Confirm the umpire's acceptance and any disclosure they make
Submitting the differences
What the umpire receives should be the dispute, not the file. A well-prepared submission makes the determination faster and more accurate.
- A statement of the items that remain in dispute, itemized
- Each appraiser's position on each item
- The items already agreed, so the umpire knows what is settled
- The evidence supporting your position on the disputed items
- Photographs and measurements that bear on the specific dispute
- Nothing addressed to coverage — appraisal determines the amount of loss
The umpire's role and its limits
The umpire determines the amount of loss on the items submitted. The umpire is not deciding coverage, not deciding causation questions that belong to coverage, and not arbitrating the parties' broader dispute. Where the line falls between amount and coverage is a recurring source of friction and varies by jurisdiction.
- Impartiality applies to the umpire and to both appraisers
- Ex parte contact with the umpire is a serious problem — copy the opposing appraiser
- Site visits by the umpire should be attended by both appraisers where practicable
- Keep the record of what the umpire was given
The award
- The award is set by the signatures of any two of the three participants
- It should identify the claim, the property, the date of loss, and the items covered
- It should be clear about what it does and does not resolve
- Deliver it to your client with the supporting record
- Record the date signed and the date delivered
Where the umpire stage stalls
- Selection drifts because neither appraiser owns the next step
- The submission is a whole file rather than a stated dispute
- Agreed items were never documented, so the umpire re-decides them
- Nobody scheduled the umpire's site visit
- The award is signed but never formally delivered
Scope note
Appraisal and umpire practice is governed by the policy language and by state law, both of which vary considerably. This is a general operational description, not legal advice.