When You Need an Umpire

You and the opposing appraiser have been trading positions for weeks. You came in at $180,000, they came in at $95,000, and after three rounds of back-and-forth you are at $165,000 and they are at $115,000. Neither side is moving and the policyholder is asking when this will be over. Without a tie-breaker, the case stays stuck indefinitely.

The appraisal clause exists for exactly this scenario. When two appraisers deadlock, the policy gives them a path to resolution: bring in a neutral umpire whose decision, combined with either appraiser's, creates a binding majority. The case ends, the carrier pays, and everyone moves on. Refusing to invoke the umpire when you have genuinely stalled just punishes the insured by delaying their settlement.

This article walks through when invoking an umpire is appropriate, what the umpire actually does, and what you should expect from the process so you can manage the policyholder's expectations from day one.

When to Involve an Umpire

• Negotiations have reached an impasse
• The difference between positions is significant
• Both parties agree an umpire is needed
• The appraisal clause in the policy requires it

The Umpire's Role

• Reviews both appraisers' positions
• May conduct their own inspection
• Makes an independent determination
• Their decision with one appraiser creates binding majority