In the process of appraising the value of loss for damaged property, having a thorough and fair appraisal report from each party is usually enough to come to an agreement. Both parties sign off, the insurance company releases a check, and work can begin on restoring the property.
However, occasionally the reports from the homeowner and the insurance company’s appraisers can have one or more major discrepancies. If an impasse is reached, many policies and state regulations allow for a third-party, independent umpire appraiser to be brought in to make an objective judgment.
What if the Appraisers don’t agree?
If an agreement cannot be made on the value of the property or the amount of the loss, they submit their differences to a neutral and disinterested umpire. Prior to the evaluation, the two appraisers will select an umpire. The umpire is basically an arbitrator. The appraisal process is far more efficient and cost-effective than going directly to litigation. It cannot be understated that the costs in the appraisal process are significantly less than going to court.
Responsibilities of the Umpire
An Umpire has a responsibility not only to the parties but also to the process of appraisal itself, and must observe high standards of conduct so that the integrity and fairness of the process will be preserved. Accordingly, an Umpire should recognize a responsibility to the public, to the parties whose rights will be decided, and to all other participants in the proceeding.
Ultimately, the Umpire will, after careful deliberation, decide all issues submitted. This decision will be binding on both parties to the process. As such, an Umpire should decide all matters justly, exercising independent judgment, and should not permit outside pressure to affect the decision.
An effective and professional Umpire will adhere to the following:
• Will render a timely and impartial decision.
• Has integrity and observes high standards of conduct.
• Has the ability to render an intelligent decision.
• Recognizes a responsibility to the public.
• Guards the integrity and fairness of the appraisal process.
• Will promote an efficient and just process.
• Always able to maintain the confidentiality of the process.
• Most of all, is trustworthy.
However, occasionally the reports from the homeowner and the insurance company’s appraisers can have one or more major discrepancies. If an impasse is reached, many policies and state regulations allow for a third-party, independent umpire appraiser to be brought in to make an objective judgment.
What if the Appraisers don’t agree?
If an agreement cannot be made on the value of the property or the amount of the loss, they submit their differences to a neutral and disinterested umpire. Prior to the evaluation, the two appraisers will select an umpire. The umpire is basically an arbitrator. The appraisal process is far more efficient and cost-effective than going directly to litigation. It cannot be understated that the costs in the appraisal process are significantly less than going to court.
Responsibilities of the Umpire
An Umpire has a responsibility not only to the parties but also to the process of appraisal itself, and must observe high standards of conduct so that the integrity and fairness of the process will be preserved. Accordingly, an Umpire should recognize a responsibility to the public, to the parties whose rights will be decided, and to all other participants in the proceeding.
Ultimately, the Umpire will, after careful deliberation, decide all issues submitted. This decision will be binding on both parties to the process. As such, an Umpire should decide all matters justly, exercising independent judgment, and should not permit outside pressure to affect the decision.
An effective and professional Umpire will adhere to the following:
• Will render a timely and impartial decision.
• Has integrity and observes high standards of conduct.
• Has the ability to render an intelligent decision.
• Recognizes a responsibility to the public.
• Guards the integrity and fairness of the appraisal process.
• Will promote an efficient and just process.
• Always able to maintain the confidentiality of the process.
• Most of all, is trustworthy.
