What role does an umpire serve in the appraisal process?

An umpire in the appraisal process serves as a third appraiser selected to help resolve disagreements between the insurer and the insured regarding the value of a claim. When the two primary appraisers (one from each party) are unable to agree on the amount of loss or damage, the umpire steps in to offer their expertise and perspective to achieve a fair resolution. This role is crucial in ensuring that the appraisal process remains impartial and that both parties have a chance to present their views.

The umpire's function is distinct from that of a mediator or representative. Unlike a mediator, who facilitates communication and negotiation, the umpire's role is more definitive, as they help finalize the decision based on the evaluations presented by the other appraisers. Additionally, the umpire does not represent the insurance company or act as a governmental authority; instead, they are an independent party whose primary purpose is to provide a fair and objective valuation process in the context of the insurance claim.