Umpire Services
In nearly every insurance policy, business, and homeowner there is an appraisal clause. The idea is to provide for extra-legal dispute resolution and solve the dispute before you have to go to court. As part of the appraisal process, each of the parties selects their independent, unbiased appraiser. In turn, the two appraisers work together to select a third party, the Umpire. The umpire must be an independent, unbiased, disinterested person.
The first task for the appraisers is to select an Umpire. The purpose of the Umpire is to address disputes between the two appraisers. Good Umpires will help guide the process along. While this is not their specified authority, they can help each side understand the other’s point of view and help move negotiations forward.
The independence of the Umpire is important, just as it is for the appraisers. The Umpire must truly be an independent, unbiased, disinterested party. That means that they cannot benefit from the process. Their compensation must not be dependent upon the outcome of the negotiations. This allows them to be a truly independent, unbiased, expert.
While every policy is different, here is an example of common appraisal language that outlines the selection and duties of an umpire:
“If you and we fail to agree on the amount of actual cash value or amount of loss, either one can demand a determination by appraisal. If either makes a written demand for appraisal, each shall select a competent, independent appraiser and notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the resident premises are located to select an umpire. The appraisers shall then set the amount of the actual cash value and loss for each item. If the appraisers submit a written report of an agreement to us, the amount agreed upon shall be the amount of the actual cash value and loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. A written agreement signed by any two of these three shall set the amount of the actual cash value and loss. Each appraiser shall be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire shall be paid equally by you and us.”
We are here to help you through this process.