In North Carolina, the appraisal clause within an insurance policy provides a mechanism to resolve claim disputes, particularly regarding the value of a total loss or diminished value. If an insured and the insurer disagree on the amount of loss, each can appoint a licensed appraiser to assess the damage. If the appraisers can’t agree, they then select an umpire, a neutral third party, to make a final decision.
It is important that an impartial umpire be selected. This individual should not be bound by any restrictions that may be imposed by either the insurance company or the consumer. According to State Statutes 58.33.26 and 58.33.30, the umpire must also be a licensed motor vehicle appraiser. Should there be a disagreement regarding selection of an umpire, the following rules apply.
Umpire Selection:
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If the two appraisers cannot agree on an umpire, either party can request that a court select one.
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This is usually done by petitioning a local court in the county where the loss occurred.
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Once selected, the umpire reviews the appraisers’ findings and may:
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Agree with one side,
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Suggest a compromise,
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Or determine a new amount independently.
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Final Decision:
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A decision agreed upon by any two of the three (either both appraisers or one appraiser and the umpire) is binding.
Steps to Petition the Court for Umpire Appointment
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Prepare a Petition: Draft a formal petition requesting the court to appoint an umpire, citing the inability of the appraisers to agree within the stipulated 15-day period.
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File Proof of Notice: Submit documentation to the court demonstrating that all parties have been notified of the petition, and ensure that at least 15 days have elapsed since this filing.
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Request a Hearing (if necessary): If either party desires, request a hearing focused solely on the selection of the umpire.
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Court Appointment: The judge will appoint a competent and disinterested umpire to resolve the appraisal dispute.
Our umpire service is designed to impart fair and equitable settlements of total loss and diminished value claims. For more information, call 772-359-4300.