Appraiser vs. Umpire: What's the Difference?

The insurance appraisal process typically involves two distinct roles: the appraiser and the umpire. Understanding the difference between these roles — and when each becomes involved — is important for anyone participating in or considering the appraisal process.

The specific requirements for each role — including qualifications, selection procedures, and responsibilities — depend on the applicable insurance policy and jurisdiction.

Each party to an appraisal typically selects its own appraiser. The appraiser's job is to independently evaluate the disputed amount — whether that is the Actual Cash Value of a vehicle, the cost of repairs, or another amount-of-loss issue within the scope of the appraisal.

Although each appraiser is selected by a party, the appraiser is not simply an advocate. Many appraisal provisions require that appraisers be competent, independent, or disinterested. The appraiser's function is to develop a professional, evidence-based opinion — not to argue for a predetermined result.

After developing their respective opinions, the appraisers communicate and attempt to reach agreement. If they agree on the disputed amount, many provisions provide that their agreement resolves the dispute.

An umpire becomes involved when the appraisers cannot reach agreement on all issues and the applicable process calls for an umpire. The umpire is a neutral, disinterested third party — not representing either party's interests.

The umpire's role is to review the evidence and the appraisers' positions on the unresolved issues and reach an independent professional conclusion. The umpire does not simply split the difference between the appraisers' positions. The umpire's conclusion should be based on the available evidence and relevant methodology.

Under many appraisal provisions, an agreement between one appraiser and the umpire on the unresolved issues constitutes a binding appraisal award. The exact requirements depend on the policy language and applicable law.

The umpire is typically selected by agreement of the two appraisers in accordance with the applicable appraisal provision. If the appraisers cannot agree on an umpire, the policy or applicable law may provide another method for selection — such as allowing either party to petition a court to appoint one.

Umpire qualifications, selection procedures, and deadlines vary by policy. The applicable provision should be reviewed carefully.