When the request is accepted, the appraisers select a competent and disinterested umpire; if the two appraisers cannot mutually agree on an umpire, then, on request of the insured or the insurance company, the umpire shall be selected by a judge of a court of record in the state in which the property covered is located.
Appraisal proceedings are informal unless the insured and this company mutually agree otherwise. “Informal” means that no formal discovery shall be conducted, including depositions, interrogatories, requests for admission, or other forms of formal civil discovery, no formal rules of evidence shall be applied, and no court reporter shall be used for the proceedings.
The appraisers then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with the insurance company shall determine the amount of actual cash value and loss.
Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally.