What is the purpose of an Umpire in an appraisal process?

The role of an Umpire in an appraisal process is specifically designed to facilitate the resolution of disagreements between appraisers regarding the value of a loss. In situations where two appraisers are appointed—one by the insurer and another by the insured—they may arrive at different assessments of the loss. This is where the Umpire comes in.

The Umpire's primary responsibility is to evaluate the conflicting estimations provided by the two appraisers and make a determination that either supports one assessment or comes up with an agreed value that both parties can accept. This process is essential in ensuring a fair resolution, helping to expedite claims without resorting to lengthy litigation. By serving as a neutral third party, the Umpire helps maintain the integrity of the appraisal process and ensure a definitive outcome for the claim.

While other roles are vital in the insurance industry, such as representing the insured’s interests or finalizing contracts, these responsibilities do not fall under the specific function of an Umpire in the appraisal context. The Umpire's focus is solely on addressing the differing opinions of appraisers, making that choice the most accurate representation of their purpose.