Appraisal vs. Umpire: How the Roof Appraisal Process Works
By Blake Snow, experienced roof consultant
When a policyholder and an insurer agree that a roof loss is covered but disagree about how much it costs, many property policies offer a way to resolve the number without a lawsuit: the appraisal clause. On large commercial roof claims, appraisal comes up often, because the differences between estimates can be large and the technical questions can be complicated.
This article explains, in general terms, how the process usually works and how the roles of appraiser and umpire differ. Policy wording varies, and state law matters, so treat this as background, not legal advice.
What appraisal is for
Appraisal is designed to settle the amount of loss. It is not usually the place to decide whether a loss is covered, whether a policy exclusion applies, or whether either side acted in bad faith. Those questions belong to the insurer, attorneys and courts. Keeping that distinction clear saves time and frustration on both sides.
On a roof claim, "amount of loss" can still involve technical questions: how much of the roof was damaged, whether it can be repaired or must be replaced, what materials and methods are required, and what the work costs. That's where roof knowledge on the appraisal panel matters.
How appraisal usually starts
A typical appraisal clause lets either party demand appraisal in writing when they disagree on the amount of loss. Each side then selects its own appraiser, often within a set number of days. The two appraisers then try to agree on an umpire. If they can't, many clauses allow either party to ask a court to appoint one.
The exact steps, deadlines and qualifications are in the policy. Some policies require appraisers to be "competent and disinterested" or similar language; state law and court decisions shape what that means. Read the clause, and talk to an attorney about your rights and deadlines.
What an appraiser does
Each appraiser is selected by one side, but the appraiser's job is to determine the amount of loss, not to argue a position regardless of the facts. On a roof claim, an appraiser usually:
- Inspects the roof and documents damage with photos and measurements
- Reviews existing estimates, reports and the claim file
- Separates storm damage from age, wear, prior repairs and installation issues
- Prepares or reviews a line-item estimate of the amount of loss
- Works with the other appraiser to reach agreement on as many items as possible
In many cases the two appraisers agree on the whole loss, or most of it, and sign an award without ever needing the umpire. Agreement is often the fastest and least expensive outcome for everyone.
What the umpire does
The umpire steps in only on the differences the appraisers can't resolve. The umpire typically reviews both appraisers' positions and supporting documentation, may inspect the roof, and then decides the disputed items. Under many policies, an award signed by any two of the three (the two appraisers, or one appraiser and the umpire) sets the amount of loss.
Roof disputes often turn on technical issues: is a mark hail damage or wear, can this membrane be repaired, is the original product still made, does a code requirement apply. An umpire with deep roofing experience can evaluate those issues on the evidence rather than splitting the difference.
Appraiser vs. umpire at a glance
- Selected by: appraisers by each party; the umpire by the two appraisers, or by a court if they can't agree
- Role: appraisers determine the amount of loss and try to agree; the umpire decides only what they can't agree on
- Paid by: commonly each side pays its own appraiser and the umpire's fee is shared, but the policy controls
What makes roof appraisal go well
From the roof side, a few things consistently help:
- A clear roof inventory: sections, systems, sizes and ages, so everyone is talking about the same roof
- Good documentation: photos and test results tied to a roof plan
- Separating cause questions from cost questions in the discussion
- Line-item estimates that match the actual roof assembly and the work required
- Respecting the scope of appraisal and leaving coverage questions to the right people
Large commercial losses
On big commercial, institutional and multi-building losses, appraisal can involve dozens of roof sections and several roof systems. Organizing the dispute section by section, with the reasoning written down, makes it much easier for the appraisers to narrow their differences and for an umpire to decide what's left.
Blake Snow serves as an appraiser and umpire on large roof losses for policyholders and carriers. See Large-Loss Certified Appraisal and Umpire and umpire services for how we work.
Common misunderstandings
- "My appraiser is my advocate." Each side selects an appraiser, but the job is to determine the amount of loss based on the evidence. Policy language and state law may set standards for impartiality.
- "The umpire will split the difference." A good umpire decides each disputed item on its merits. On a roof, that can mean siding with one appraiser on some sections and the other on others.
- "Appraisal will settle coverage." Usually not. If coverage is disputed, that question generally has to be resolved separately.
- "Appraisal is always faster." It often is, but a poorly organized appraisal on a large roof can drag on. Good documentation is what keeps it moving.
After the award
Once an award is signed, the amount of loss is set according to the policy, and the claim moves on to payment, subject to the policy's terms. If the roof is being repaired or replaced, the scope in the award becomes a practical guide for the work. Our sister company's commercial roofing page covers the systems involved.
Not legal advice. Appraisal rules, deadlines and umpire procedures vary by state and by policy, and your policy's wording controls. For questions about your rights, coverage or deadlines, talk to an attorney licensed in your state.