What occurs in the property claims appraisal process, including the umpire's role?

• A. Appraisers assess damages and estimate costs; if they disagree, an umpire resolves the difference to reach a final value.
• B. An umpire arbitrates the entire claim from the start.
• C. The insured alone determines the final value without appraisers.
• D. The insurer's adjuster makes all decisions without any independent review.

Answer: (A)

In property claims, the process focuses on determining the amount of loss, not who is at fault or whether coverage applies. Two appraisers—one for the insured and one for the insurer—each review the claim, inspect the damages, and prepare independent estimates of the repair or replacement costs. If their estimates align, that agreed amount becomes the final value. When they don’t agree, a neutral third party, the umpire, is brought in to hear the arguments and render a ruling on the amount. That decision by the umpire is binding on both sides and final for the loss amount, efficiently resolving the dispute without litigation. The umpire’s role is specifically to settle disagreements between the two appraisers, not to arbitrate the entire claim from the start or to let one party unilaterally determine the outcome.