Joe Gulick | JS Held
Introduction
In the world of insurance valuation disputes, the selection of the appraiser and umpire can significantly influence the outcome of an appraisal. These professionals play an important role in resolving disagreements over the value of damages, and their competence, impartiality, and negotiation skills are essential for achieving fair awards. Whether you are a policyholder, insurer, or consultant, recognizing the attributes that define a competent appraiser or umpire is key to navigating the appraisal process successfully.
This article examines the characteristics that define a competent and impartial appraiser and umpire, the differences and similarities between the two roles, and how the right selection can increase the likelihood of a fair award, even in high-stakes high-value claims.
When Are Appraisers and Umpires Needed in Insurance Matters?
Insurance appraisals typically involve three individuals: two appraisers (one selected by each party) and one umpire. The process is designed to be collaborative, not adversarial, and when conducted appropriately, appraisers are not “opposing” forces but rather professionals working toward a fair resolution of valuation disputes, based on several variables that require the proper knowledge, skills, and demeanor.
The appraisal clause in most insurance policies allows for this process when there is a disagreement over the value of a loss. If the two appraisers cannot agree and reach an impasse, the umpire is brought in to resolve appraisers’ differences. A decision agreed upon by any two of the three is binding. This structure underscores the importance of selecting individuals who are not only knowledgeable but also capable of working constructively with others. After each party selects their appraiser, the selection of the umpire is typically the first task completed by the two appraisers prior to “appraising” the disputed loss. This helps ensure a quicker path toward resolution should impasse between the appraisers occur during the negotiations.
Understanding the Roles of an Appraiser or Umpire in the Insurance Appraisal Process
Appraiser Responsibilities
An appraiser is responsible for independently evaluating and determining the amount of loss that has been submitted to appraisal. Each party selects their own appraiser, who brings their independence and expertise to the process. While appraisers are retained by their client, they must remain unbiased and open to dialogue and resolution.
Duties of an Umpire
The umpire’s role is typically activated only when the appraisers reach an impasse. In most states, the umpire is not involved until this point. Most policies define the umpire’s role as limited to ruling on the differences between the appraisers. Typically, the role of the umpire is simply described in the appraisal clause of the policy.
The following sections highlight some key characteristics to prioritize when selecting an appraiser or umpire.
Expertise Required for an Appraiser or Umpire
The candidate should ideally have experience in the specific items of claim involved that form the subject of the dispute. For example, if the matter involves roofing, HVAC, or structural damage, the expert should be well-versed in those areas.
In cases where multiple trades are involved, it is beneficial to select someone with the ability to consult with other subject matter experts across disciplines. This allows the appraiser to fairly quantify all aspects of the appraisal that may fall outside their direct expertise. In many instances, appraisers and umpires can and should utilize experts to help inform a proper decision.
Impartiality Expectations for Appraisers and Umpires
Impartiality is the standard by which appraisers and umpires should be selected and is non-negotiable. The individual must be able to set aside personal or professional biases and focus solely on the items of claim that are disputed and are the subject of the appraisal. This includes avoiding preconceived notions and being open to the other party’s perspective. The appraisal panel (appraisers/umpire) should always try to work together to achieve a proper outcome.
How Appraisers or Umpires Serve as Experts
Especially for umpires, negotiation skills are vital. They must be able to mediate differing viewpoints, identify common ground, and help guide the parties toward agreement when possible. This requires emotional intelligence, patience, and the ability to manage conflict constructively.
How Appraisers or Umpires Facilitate Dialogue
Effective communication is essential throughout the appraisal process. Appraisers must be able to articulate their findings clearly and engage in meaningful dialogue with other appraisers. Umpires must facilitate discussions and ensure that all parties have an adequate ability to explain their respective opinions regarding the amount of loss.
Ethical Conduct for Appraisers or Umpires
The individual’s reputation, demeanor, and ethical standards matter. Finding an appraiser who is objective and respected in their field, known for their fairness, and committed to upholding the integrity of the process is essential to ensuring a fair result.
Conclusion
Selecting a competent and impartial appraiser and umpire is more than a procedural step; it is a strategic decision that can shape the outcome of an insurance dispute. Professionals with the requisite skills bring clarity, expertise, and resolution to complex matters, and their ability to remain neutral and collaborative is essential.
Ultimately, the goal is not only to resolve a dispute but also to do so in a manner that is fair, efficient, and respectful of all parties involved. By prioritizing competence, impartiality, and communication, the stage is set for fair and impartial outcomes, even in the most challenging scenarios.
When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.