What is a common aspect of an insurance appraisal process?

The engagement of an umpire and appraisers is a fundamental aspect of the insurance appraisal process, particularly in situations where there is a dispute over the value of a claim. This process is typically initiated when the insurer and the insured cannot agree on the amount to be paid for a covered loss.

In this setting, each party selects an appraiser who independently evaluates the damages and submits their assessment. If these appraisals differ significantly, an impartial umpire is brought in to help resolve the disagreement. This tripartite method (two appraisers and one umpire) ensures that the evaluation process is balanced, fair, and rooted in expertise. The umpire serves as a neutral party, whose role is to facilitate agreement between the two appraisers and ultimately help in reaching a fair resolution.

This structure enhances the objectivity of the appraisal process, making it an essential element for resolving disputes effectively. It emphasizes the importance of having a system in place to extract unbiased evaluations for claims when negotiations stall.