Insurance Umpires: Role, Selection and How to Become One
The umpire is the neutral decision-maker in insurance appraisal. Here is how the role works.
An insurance umpire is a neutral third party who resolves the differences between the policyholder's appraiser and the insurer's appraiser in an insurance appraisal. Under most appraisal clauses, a written decision agreed to by any two of the three (the umpire and one appraiser) sets the amount of loss.
What does an insurance umpire do?
- Discloses any conflicts of interest before accepting the appointment
- Receives the items the two appraisers could not agree on, usually with both estimates
- Reviews documents, photos and reports, and may inspect the property
- Holds a hearing or conference where each appraiser presents their positions and evidence
- Decides each disputed item based on the evidence, the policy and applicable law
- Drafts and signs the appraisal award with at least one appraiser
How is an umpire selected?
The two appraisers normally choose the umpire together. Many policies give them a fixed period, often 15 days. If they cannot agree, either party can typically ask a court in the state where the property is located to appoint an umpire. Some states add their own procedures; Iowa's Insurance Division, for example, maintains a list of licensed umpires and a process to request or object to one (see the Iowa guide).
Who pays the umpire?
Most appraisal clauses split the umpire's fee and other shared appraisal expenses equally between the policyholder and the insurer. Each side pays its own appraiser.
Qualities of a good umpire
- Neutrality: no financial, business or personal ties that favor either side
- Deep technical knowledge of construction, estimating and valuation
- Procedural fairness: both appraisers are heard and both see the same evidence
- Clear reasoning and a precise, itemized award
- Awareness of the limits of appraisal, such as coverage questions
How to become an insurance umpire
- Build substantial experience as an appraiser, adjuster, contractor or engineer.
- Earn a reputation for neutrality with appraisers on both sides.
- Get trained in umpire practice: hearings, evidence review and award drafting.
- Earn the AUA Certified Umpire (AUA-CU) credential: Credential Review Committee approval, 14 classroom hours, and 85% on the exam and the practical assessment.
- Get licensed where required, as in Iowa, and keep up with continuing education.
Become an AUA Certified Umpire
Frequently asked questions
What is an insurance umpire?
An insurance umpire is a neutral third party who resolves the differences between the two appraisers in an insurance appraisal. A decision agreed to by the umpire and at least one appraiser typically sets the amount of loss.
Who chooses the umpire?
The two appraisers usually select the umpire together. If they cannot agree within the time the policy allows (often 15 days), either party can typically ask a court to appoint one. Some states, such as Iowa, also provide a regulatory process for requesting an umpire.
Who pays the umpire?
Most appraisal clauses require the policyholder and the insurer to share the umpire's fee and other appraisal expenses equally, while each pays its own appraiser.
Does an umpire decide coverage?
Generally no. Appraisal decides the amount of loss. Coverage disputes are usually reserved for the insurer and the courts, although the line between amount of loss and causation varies by state.
How do I become an insurance umpire?
Most umpires first build substantial experience as appraisers, adjusters, contractors or engineers, then develop a reputation for neutrality. The AUA Certified Umpire (AUA-CU) credential requires Credential Review Committee approval, 14 classroom hours, and 85% on both the exam and the practical assessment.