7 Ways Insurance Adjusters Determine a Claim Amount
No one knows the insurance industry better than insurance adjusters. They are the professionals who determine how much a claim is worth and whether or not a policyholder deserves compensation. Here are seven ways that insurance adjusters determine a claim amount.
1. Claims History
When calculating a claim amount, many insurance adjusters will refer to an individual’s claim history. If the claimant has filed several claims in the past, then their policy or current claim may be assigned a higher risk level when determining the amount of compensation.
2. Claimant Goals
For some individuals, the goal of their insurance claim is to obtain money for property damage or loss. For others, it’s to get a new sofa or receive a new roof for their home. The adjuster will look into the goals of the claimant and attempt to reach an agreement that is agreeable to both parties.
3. Normal Procedures of the Insurance Company
When an insurance company has a specific procedure for determining claim amounts, it can be used as a rule of thumb for insurance adjusters. Some larger companies follow guidelines based upon the BI (Business Interruption) or ERI (Economic-Related Income) manuals that the ISO publishes.
4. Independent Investigation
While insurance companies typically have a protocol in place for determining a claim amount, it’s not uncommon for an insurance adjuster to conduct his own investigation. This may be especially common when a policyholder has filed a claim in opposition to their insurance company. Independent investigations help reveal the truth when there is doubt.
5. Independent Research
As with investigations, research is not done solely by an insurance company. Independent study is frequently conducted by individuals with expertise in the field, such as Independent insurance adjusters who typically research online. However, they may also consult with experts, such as a roofing contractor or a building inspector. When conducting research, insurance adjusters may also refer to the Independent Property Inspections Directory.
6. Independent Verification
The insurance company will want to verify certain information for obvious reasons before determining a claim amount. For example, they will want to verify the validity of a roofing contractor’s license before deciding if an individual deserves compensation for property damage. An independent insurance adjuster CO-based will often be called upon to conduct independent verification.
7. Independent Evaluation of Property Damage
Most insurance adjusters are experienced in determining the extent of property damage after a natural disaster or accident. Independent insurance adjusters are often called upon to conduct evaluations of property damage in support of an insurance claim for compensation. They typically use various tools to evaluate property damage, including cameras and other imaging equipment. You may submit any evidence obtained during an Independent Insurance Adjuster’s evaluation of property damage to the insurance company for consideration.
Insurance adjusters have a significant impact on the insurance industry. Independent insurance adjusters have even more influence because they work on behalf of individuals and families, who are typically their own best advocates. They fight for the best possible claim amount to ensure that policyholders receive fair compensation following an insurance claim.