An umpire is a competent, disinterested, impartial individual who is charged with making a decision regarding the value of property or the amount of a property loss. In the property insurance world an umpire is an appointed professional in an insurance claim dispute who makes a binding decision after the two parties in an appraisal process fail to agree on a loss.
In the world of insurance claims, an insurance umpire, also acts as a neutral participant who enforces the rules and renders decisions based on pre-specified guidelines. Umpires act as an impartial intermediary between the property owner’s appraiser and the insurance company’s appraiser. The roll of the umpire is to evaluate the facts of the claim and the obligations set forth in the insurance contract.
One way for policyholders to dispute their insurance company’s offer is to invoke the appraisal clause within the insurance policy. When conducted properly, appraisal can be a very effective alternative dispute resolution process. However, you should know that not all insurance policies contain an appraisal clause. We help to determine whether or not your policy contains an appraisal clause.
The Appraisal Clause may include the following language and is a good general explanation of how appraisal works:
"If you and we fail to agree on the amount of loss, either may demand that the amount of loss be set by Appraisal. If either makes a written demand for Appraisal, each shall select a competent, independent appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial Umpire. If the two appraisers are unable to agree upon an Umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an Umpire. The Appraisers shall then set the amount of the loss. If the Appraisers fail to agree within a reasonable time, they shall submit their differences to the Umpire. Written agreement signed by any two of these three shall set the amount of the loss."
The term mediation broadly refers to any instance in which a third party helps others reach an agreement. More specifically, mediation has a structure, timetable, and dynamics that "ordinary" negotiation lacks. The process is private and confidential, possibly enforced by law. Participation is typically voluntary. The mediator acts as a neutral third party and facilitates rather than directs the process. Mediation is becoming a more peaceful and internationally accepted solution to end the conflict. Mediation can be used to resolve disputes of any magnitude.
Mediators use various techniques to open, or improve, dialogue, and empathy between disputants, aiming to help the parties reach an agreement. Much depends on the mediator's skill and training.
David Hahn is a certified mediator who completed the 40-hour mediation training with industry certifications of diverse multi-disciplinary segments of property appraisal, cost segregation study, replacement cost appraisal, HOA Reserve Study, business intangible valuation, litigation support with expert court testimony, and solid mediation experiences that enables to facilitate all facets of:
Also, David Hahn is a Master Analyst in Financial Forensics (MAFF) that he can identify the property damages and business damages, ultimately this can lead to the reasonable and defensible appraisal valuation umpire call.
Contact David Hahn, ASA, CVA, CCIM, MAFF, CM&AA, MBA for assistance.
Copyright © 2017 Alpha Consulting Group, Certified M&A Advisor (CM&AA), Commercial Business Valuation, Cost Segregation Study, Reserve Study - All Rights Reserved. Business Financial Commercial Valuation, Commercial Real Estate Appraisal, Capital Assets Valuation - Washington State Certified General Real Estate Appraiser, David Hahn, WA Designated Real Estate Broker, Company Business Valuation, Fairness Opinion, Solvency Opinion, Estate Tax Valuation, Gift Tax Valuation, ESOP Valuation, Patent Valuation, IP Valuation, - All Rights Reserved. David Hahn, Certified Valuation Analyst (CVA), Certified Commercial Investment Member (CCIM), Master Analyst in Financial Forensics (MAFF), Accredited Senior Appraiser (ASA).