Who is responsible for paying the expenses of appraisal and umpire?

The correct understanding is that both parties equally share the responsibility for paying the expenses associated with appraisal and umpiring in the context of insurance claims. This principle stems from the concept of mutual agreement between the insurer and the policyholder during the appraisal process. When a dispute arises regarding the amount of loss, both parties typically agree to appoint an independent appraiser.

The costs incurred, including any fees for the appraisers and the umpire, are usually divided equally, making it a shared financial responsibility. This arrangement encourages both parties to participate constructively in the appraisal process, as it fosters fairness and equal investment in the resolution of the claim.

In contexts where only one party would bear these costs, it could lead to imbalances and discourage fair negotiation or resolution. Therefore, the arrangement of shared expenses is both practical and equitable in the insurance claim process.