When most of us hear about umpires our mind immediately goes to baseball. These are the referees in a baseball game that officiate the rules and conduct of the players. More specifically, we think about the umpire behind home plate that calls balls and strikes. They do not work for either team. They are a neutral party and are supposed to make rulings based on the official rules that govern the sport. Their job is not to change the game or influence an outcome. Instead, their job is to make sure it is fair. Some of you might be shocked to learn that insurance claims have umpires, too. If you have a dispute with your insurance company over a homeowners insurance claim, umpires can become involved. The team at Streamline Insurance is here to give you the facts about insurance claims umpires and their role. 

Why Are Umpires Needed for Insurance Claims?

Homeowners insurance policies have several parts that highlight what you can do as a policyholder if you file an insurance claim, but disagree with the claim award. These two provisions, the umpire clause and the appraisal clause, form the basis of why insurance claims umpires exist. 

The umpire clause of your homeowners policy is essentially an arbitration clause. If you disagree with the insurance claim settlement offered by your insurer, you can get a ruling from a neutral third party. The neutral third party who makes the final ruling is the umpire. The arbitration process is also guided by the appraisal clause. In order to have an umpire make a ruling on your insurance claim, each party needs to have an insurance appraiser assess the claim damage. Together, the policyholder’s appraiser, the insurance company’s appraiser, and the umpire make up the appraisal panel. Together, they will come up with a settlement amount for your total loss insurance claim or minor damage insurance claim. 

Umpires are an important component to the appraisal panel because they act as an impartial intermediary between the two appraisers. Each appraiser acts on behalf of the clients they represent. The insurance company’s appraiser advocates on their behalf, while the homeowner’s appraiser, usually a public adjuster, works on the policyholder’s behalf. The umpire works for neither of them. Instead, they are there to evaluate the facts of the insurance claim and the obligations of the insurance contract. The three members of the panel try to come to an agreement that everyone is happy with. However, if the two appraisers disagree and cannot come to an agreement, the umpire renders the final decision. 

How to Make Homeowners Insurance Claims Simple

Ideally, it would be nice to never have to worry about insurance claims. However, accidents happen and unforseen events occur. That is why insurance is so imporant. It helps make you whole again after all of life’s surprises. Because of that, it is unreasonable to believe that it is impossible for an insurance claim to happen. They happen to everyone. Instead, policyholders should do what they can to minimize insurance claims before they occur and take steps to make sure they go smoothly. 

First, make sure you are working with a professional insurance agent or insurance broker. You want someone who understands all coverage options inside-and-out, and can recommend coverages based on your needs. An easy way for an insurance claim to go sideways is for you to not have the coverage necessary in the first place. Professional insurance agents and insurance brokers will offer you complimentary insurance reviews. This will give them a chance to review your policies with you, answer questions, and make sure the coverage limits still meet your needs. 

Second, make sure you have homeowners insurance or auto insurance with a reputable insurer. At Streamline Insurance, we make sure to only work with high rated insurers. Insurance is there for when your back is against the wall and in those times you want a company with a proven track record of taking care of their clients. Not all insurance companies are created equally, so make sure your policy is with one of the best. 

Final Thoughts

Insurance policies are complicated and have many components, such as the umpire clause. It is easy to be overwhelmed by every little nuance and provision. Thankfully, the insurance professionals at Streamline Insurance are here to walk you through every part. Not only will we educate you about all possible coverages in your home or auto policy, we can walk through your needs and see which limits fit best. We want you to have the protection you need at premiums that you can afford. If you would like a professional insurance review of your homeowners insurance or car insurance, contact us. We are ready to make sure you have the protection you need today.