Impartial Umpire in Insurance Appraisal

When your home suffers damage from a storm (be it from hail, wind, or some other peril) and you file an insurance claim, sometimes you and your insurance company cannot agree on how much the necessary repairs should cost. An insurance appraisal can resolve these disagreements. Appraisal is a process outlined in most policies to bindingly set the amount of loss without requiring a court. Each side selects its own appraiser to evaluate the damage, and the appraisers appoint a neutral third party, the umpire, to serve as the deciding voice if they do not agree on the loss. The umpire can be appointed by the two appraisers, but often the selection process culminates in court if the appraisers cannot agree on a competent and impartial umpire.

The umpire’s job is not to start from scratch and create their own estimate; instead, they review the two existing appraisals and resolve the differences, helping to establish a fair amount for the claim. This promotes efficiency and focuses the process on resolution. But for the appraisal process to work, the umpire must be truly impartial, free of any ties that could create conflicts, and experienced in property damage, insurance claims, and, crucially, resolving disputes as a neutral third party. Vetting an umpire candidate involves digging into their background, professional ties, experience, and any potential conflicts that could bias the outcome of the appraisal.

Homeowners should always vet potential umpires thoroughly to avoid any hint of bias that might otherwise skew the appraisal outcome in the insurer’s favor. This process must go beyond a simple resume review and verify independence to protect your claim. For homeowners, this means requesting detailed CVs, checking public records and court appointments, and even contacting them directly for transparency. If red flags appear (especially ones that were not disclosed up front, like close insurer relationships), you can challenge the nomination in court.

If you are facing an appraisal dispute and need help selecting or challenging an umpire, or responding to a petition to appoint an umpire, the attorneys at Merlin Law Group’s Denver office are here for you. We are regularly called on to assist insureds across the country in these situations, drawing on our experience to advocate for qualified, objective umpires. Whether you have questions or need support with an appointment, reach out. Merlin Law Group remains dedicated to leveling the playing field for policyholders.