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  • Writer's pictureJonathan Amato

Insurance Claim Umpire Services in Florida - Understanding the Mechanism

When an insurance claim is filed, the insurance company sends an adjuster to assess the damage and calculate the compensation amount. However, the policyholder and the insurance company sometimes need to agree on the settlement amount. Both parties can appoint an independent third-party arbitrator called an insurance claim umpire to resolve the dispute in such cases.

Insurance Claim Umpire Services in Florida is a relatively new concept. In 2005, the state passed a law allowing policyholders and insurance companies to use umpires to settle disputes. Since then, insurance claim umpire services have become increasingly common in Florida.

Understanding the Mechanism of Insurance Claim Umpire Services

When both parties cannot agree on the settlement amount, they appoint an umpire. The two umpires then reach a consensus on the settlement amount. A neutral referee is set to break the tie if they cannot get an agreement.

The mechanism of Insurance Claim Umpire Services is quite straightforward. Once appointed, the umpires review the claim and the evidence presented by both parties. They then conduct a site inspection to assess the damage firsthand. Based on their findings, they estimate the damage and suggest a settlement amount.

Notably, the insurance claim umpire's decision is binding, meaning both parties must accept the settlement amount suggested by the referee. This differs from mediation, where both parties work together to reach a settlement agreement. In the case of insurance claim umpire services, the umpire's decision is final.

Benefits of Insurance Claim Umpire Services

• The primary benefit of using Insurance Claim Umpire Services is that it provides a quicker and less-expensive dispute resolution. Litigation can take years and cost tens of thousands in legal fees. In contrast, using an umpire can resolve the dispute within a few weeks and at a fraction of the cost.

• Another benefit is that the umpire is an independent third party, which can help to reduce bias. The insurance company's adjuster may be vested in keeping the settlement amount low, while the policyholder may emotionally attach to the property. On the other hand, the umpire has no stake in the outcome and can provide an unbiased assessment of the damage.

• Finally, using an umpire can help to reduce the strain on the court system. With increasing insurance claims, the courts are becoming overwhelmed with cases. Using an umpire can help to free up resources and reduce the burden on the courts.

Choosing an Insurance Claim Umpire in Florida

When choosing an insurance claim umpire in Florida, choosing someone with experience and expertise in the relevant field is important. The referee should thoroughly understand the insurance industry and the claims process. They should also know building codes, construction materials, and industry standards.

In addition, the umpire should have a reputation for fairness and impartiality. They should be able to provide references from previous clients and have a track record of successful resolutions.


Insurance Claim Umpire Services in Florida provide an alternative way to resolve disputes between policyholders and insurance companies. The mechanism is straightforward, and the decision is binding. Using an umpire can give a quicker and less expensive resolution to disputes, reduce bias, and reduce the strain on the court system.

Choosing an umpire with experience, expertise, and a fairness and impartial reputation is essential. Policyholders and insurance companies can ensure a fair and unbiased assessment of the damage and a quick resolution to the dispute by choosing the right umpire.

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