Umpire
An umpire is a neutral third party appointed during the insurance appraisal process when the policyholder's appraiser and the carrier's appraiser cannot agree on the value of a loss. The umpire's decision, combined with agreement from either appraiser, becomes a binding award.
The Tiebreaker in Insurance Appraisals
An umpire is a neutral third party appointed during the insurance appraisal process when the policyholder's appraiser and the carrier's appraiser cannot agree on the value of a loss, and the umpire's decision combined with agreement from either appraiser becomes a binding award. When appraisal is invoked through the appraisal clause, each side hires their own appraiser. If those two appraisers reach an impasse, they jointly select an umpire. The umpire reviews both positions and makes a determination. That determination, combined with agreement from either appraiser, becomes binding on both parties.
How the Umpire Process Works
The umpire does not start from scratch - they evaluate the positions already presented by both appraisers.
| Step | What Happens |
|---|---|
| 1 | Appraisal clause is invoked by either party |
| 2 | Each side appoints their own appraiser |
| 3 | Appraisers attempt to agree on the loss value |
| 4 | If they cannot agree, they jointly select an umpire |
| 5 | Umpire reviews both appraisers' positions and documentation |
| 6 | Umpire issues a determination |
| 7 | Agreement by the umpire + either appraiser = binding award |
The key detail: only two of the three parties need to agree. The umpire plus the policyholder's appraiser can outvote the carrier's appraiser, and vice versa. This means the quality of your appraiser's Xactimate estimate and supporting documentation directly influences whether the umpire sides with your position.
What It Costs to Get to Umpire
Umpire fees typically run $250-$450 per hour, split 50/50 between the policyholder and the carrier. On top of the umpire's fee, each side pays their own appraiser. Getting to the umpire stage means the claim is seriously disputed and the dollar amount at stake justifies the cost. On a $5,000 supplement dispute, the economics rarely make sense. On a $25,000 dispute, the umpire process is often the fastest path to resolution.
When the Umpire Favors Your Position
Umpires are professionals who respond to evidence, not emotion. A well-built Xactimate estimate with accurate Sketch measurements, proper line items, documented code requirements, and organized photos gives the umpire a clear, defensible position to agree with. A vague estimate with missing documentation gives them nothing to work with.
Prepare for the umpire process the same way you prepare for a re-inspection. Have every line item documented, every measurement verified, and every code citation referenced. The umpire's decision is binding - there is no appeal. Make sure your documentation is airtight before it reaches their desk.
Frequently asked questions
Umpire fees run $250-$450/hour, split 50/50 between the policyholder and carrier (Claims Appraisal Inc., New Hope Claims). Getting to an umpire means the claim is seriously disputed and the stakes are high enough to justify the cost.
The umpire's decision, combined with agreement from either the policyholder's appraiser or the carrier's appraiser, becomes binding. This means only two of the three parties need to agree for the decision to stand.
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