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How an Insurance Umpire Resolves Texas Appraisal Disputes
When you and your insurance company disagree about the amount of a property damage loss, your policy’s appraisal provision may offer a way forward. Appraisal generally addresses the amount of loss rather than deciding whether the policy covers it. An insurance umpire helps resolve disagreements when the two appraisers cannot reach an agreement.
Under many Texas property insurance policies, you and the insurer each select an appraiser, and those appraisers select an impartial umpire. The umpire is not your advocate or the insurance company’s representative. If the appraisers cannot agree on an umpire, the policy typically describes another selection process, which may involve a court.
The appraisers evaluate the damage and develop their positions on the amount of loss. If they agree, the umpire may not need to decide anything. If they disagree, they submit their differences to the umpire, who may review estimates, photographs, measurements, repair methods, and other relevant records.
The umpire’s job is to evaluate those differences, not simply split the gap between two estimates. For example, a dispute might involve the quantity of damaged roofing, appropriate repair work, or local labor and material costs. Depending on the policy and appraisal process, the umpire may also inspect the property or ask for clarification from the appraisers.
Many appraisal provisions state that a written agreement signed by any two members of the three-person panel establishes the amount of loss. That means an umpire and one appraiser can reach an award without the other appraiser’s agreement. An award does not automatically mean the insurer pays the full listed amount; deductibles, policy limits, prior payments, and unresolved coverage issues may still affect payment.
Before starting appraisal, read your policy’s requirements, including how appraisal is requested and how expenses are divided. Many policies require each side to pay its own appraiser and share the umpire’s fees and other appraisal expenses. Organize your estimates, damage photos, invoices, and claim correspondence so the disputed items are clear.
For Texas homeowners and business owners, understanding the umpire’s role can make appraisal less confusing and help set realistic expectations. Catastrophe Loss Consultants offers appraisal, umpire, and loss consulting services, along with free claim reviews to help you better understand your claim and the issues in dispute.