What is the role of an umpire in the appraisal process?

The role of an umpire in the appraisal process is to act as a neutral party who provides a decision regarding the disputed claims between the insured and the insurer. In an appraisal, when the two parties cannot agree on the amount of loss, they may each select an appraiser. If these appraisers cannot reach an agreement, they will then seek the assistance of an umpire to make a final determination on the value of the loss.

This impartial role is crucial because it ensures that both parties have a fair and unbiased evaluation of the claim, leading to a more equitable resolution. The umpire's objective stance helps bolster the credibility of the appraisal decision in the eyes of both the insurer and the insured, ultimately fostering trust in the appraisal process.

Understanding this role clarifies the distinct responsibilities within an appraisal, ensuring that disputes are resolved without bias toward either party's interests. This establishes the umpire as a vital component in facilitating effective and fair claim resolutions.