How an Appraisal Umpire Is Selected & Reaches a Decision

When the two party-appointed appraisers reach a deadlock, an impartial umpire steps in to decide the disputed amounts. Here's how the umpire is selected and how the award is reached.

By Marshall Smith, IAUA CPAU Certified Insurance Appraiser · Published September 2, 2026 · 8 min read · Filed under Appraisal Process

When the two appraisers in a property insurance appraisal cannot agree on the amount of loss, an impartial umpire is selected — by mutual agreement of the appraisers or, failing that, by a court — and that umpire reviews the disputed items and decides them. An award signed by any two of the three panel members (either appraiser plus the umpire, or both appraisers) then sets the amount of loss. Critically, the umpire decides how much, never whether the loss is covered — coverage is a separate determination under the policy, made by the carrier and, where the parties disagree, resolved by a court.

That is the short answer. The detail below explains what a deadlock looks like, how the umpire is chosen, what the umpire actually reviews, how the award is written, and what happens once it is signed.

What a deadlock between the two appraisers looks like

Most appraisal clauses call for each party — the policyholder and the insurer — to appoint its own independent, competent appraiser. Those two appraisers inspect the property, exchange estimates, and try to reconcile their numbers line by line. Often they succeed. When they do, they sign an agreed award between themselves and no umpire is ever needed.

A deadlock is simply the point at which the two appraisers have narrowed things as far as they can and still disagree on one or more items. The disagreement is usually about scope or valuation: whether a slope of roofing needs full replacement or spot repair, how much of a ceiling was affected by water, the unit cost of a specialty material, or the extent of matching required. It is rarely a personality problem — it is two qualified professionals reading the same evidence differently.

When that happens, the clause provides a built-in tiebreaker. The appraisers turn to an umpire, not to a courtroom. That is the entire purpose of the umpire mechanism: to keep a valuation disagreement inside the efficient, contractual process both sides already agreed to rather than escalating it. You can read more about how that fits alongside other resolution paths on our alternative dispute resolution page.

How the umpire is chosen — and what happens if the appraisers can't agree

The first route is agreement. The two appraisers confer and try to select an umpire they both trust to be impartial and competent in the type of loss at issue. Because appraisers who work in the same regional market often know the same pool of qualified umpires, this frequently works. Each appraiser may propose names; they compare qualifications, check for conflicts, and settle on one person.

When the appraisers cannot agree on a name within the time the policy allows, most appraisal clauses provide a fallback: either party may ask a court of competent jurisdiction in the county or district where the property sits to appoint the umpire. The judge selects a qualified, neutral person, and that appointment carries the same authority as a mutually chosen umpire. Some states and some policy forms describe the request and appointment procedure in specific terms, so it is always worth reading your own policy's appraisal provision to see exactly what it says.

Either way, the goal is the same — to place a genuinely neutral third party over the one or two items still in dispute.

What makes an umpire impartial

An umpire is not a second appraiser for either side. The role exists to be neutral, and that neutrality is what gives the award its credibility. A properly selected umpire has no financial stake in the outcome, no ongoing relationship that would favor one party, and no prior involvement in this particular claim.

Beyond the absence of conflicts, competence matters. An umpire deciding a hail-scope dispute should understand roofing systems and storm damage; one deciding a fire loss should understand smoke and structural cleaning. Credentials such as the IAUA Certified Professional Appraiser (CPAU) designation signal formal training in the appraisal and umpire process. Marshall Smith holds that certification and serves as an umpire across Texas, Louisiana, Oklahoma, Colorado, and California; attorneys and appraisers can check availability through our umpire availability request form.

What the umpire actually reviews

Once engaged, the umpire's job is narrow and specific: review the items the two appraisers could not agree on, and decide them. The umpire does not reopen items the appraisers already settled. Points of agreement stand.

To decide the open items, the umpire typically examines the two appraisers' estimates side by side, the supporting documentation each relied on, and the physical evidence. That physical evidence is why documentation prepared earlier in the claim carries so much weight — clear, dated photographs, measured diagrams, material samples, and a coherent scope of work let the umpire evaluate the disagreement on its merits rather than on assertion. In many losses the umpire will also inspect the property directly, sometimes with the two appraisers present, to see the disputed conditions firsthand. For steep, wide, or storm-damaged roofs, drone imagery can supplement that inspection.

The umpire weighs the competing positions against the evidence and forms an independent judgment on each disputed line — not by splitting the difference as a reflex, but by deciding what the evidence supports.

How the award gets written and signed

An appraisal award is a written statement of the amount of loss. Under the standard clause, agreement between any two of the three panel members determines the amount and sets the award. In practice, that means the umpire reviews the disputed items, reaches conclusions, and then presents those to the two appraisers. If the umpire and one appraiser agree, their two signatures make the award. If, after seeing the umpire's conclusions, both original appraisers now agree with each other, their two signatures can make it instead.

The award records the amount of loss — often broken out enough to show how the disputed items were resolved — and is signed and dated. Because two signatures bind, the award does not require unanimity. This structure is what keeps the process decisive: it cannot stall simply because one appraiser continues to disagree.

The line an umpire cannot cross: amount, not coverage

This is the single most important limit on the umpire's authority. Appraisal — including anything the umpire decides — settles the amount of loss only. Whether a particular loss or item is covered under the policy is a different question entirely. That coverage determination is made by the carrier under the terms of the policy, and where the parties disagree about it, it is resolved by a court, never by the appraisers or the umpire.

In practice this means an umpire can decide how much it would cost to repair a damaged roof slope, but not whether the policy responds to that damage. Sometimes an award will value an item while the parties continue to dispute coverage of it separately; the award quantifies, the policy and, if needed, the courts decide the coverage question. Keeping that boundary clear protects everyone and keeps the appraisal within the scope both sides agreed to. Our insurance umpire services page explains that scope in more detail.

How long it takes, and what each side can submit

Timelines vary with the complexity of the loss, the number of disputed items, and how quickly an inspection can be scheduled. A single-issue residential dispute with clean documentation moves faster than a large commercial loss with dozens of open lines. Because the pace depends heavily on scheduling and evidence, it is more useful to prepare well than to expect a fixed number of days.

To that end, each appraiser generally submits to the umpire the material behind its position: the estimate, photographs and measurements, any material samples or lab findings, weather documentation where storm timing is at issue, and a clear written explanation of why each disputed item is scoped or valued as it is. The stronger and more organized that record, the more efficiently the umpire can decide. Vague or incomplete submissions tend to slow the process, not speed it.

What happens after the award is signed

Once two panel members sign, the award establishes the amount of loss under the policy. From there, the parties apply the policy's own terms — deductibles, any recoverable depreciation provisions, and coverage determinations that remain the carrier's to make — to arrive at what is actually paid. The award settles the number; it does not rewrite the rest of the contract.

A signed appraisal award is generally final and binding as to the amount of loss, subject to the narrow grounds your state's law allows for challenging one. That finality is the point. It gives both the policyholder and the insurer a definite figure to work from without the cost and delay of litigating a valuation dispute.

If you want to understand the broader mechanics before you reach this stage, our companion guide on the insurance umpire process walks through the panel structure from the beginning.

Talk it through before you decide

If your appraisal has reached a deadlock, or you simply want to understand how an umpire would handle the items still in dispute, Marshall Services offers a free consultation. As an IAUA Certified Professional Appraiser serving Texas, Louisiana, Oklahoma, Colorado, and California, Marshall Smith can explain your options as a neutral, evidence-based professional. Call 972-322-0752 to talk it through.