If you ever make a sizeable claim on your home insurance, there’s a good chance you’ll come across a Loss Adjuster at some point. You may already know that a Loss Adjuster is an external actor employed by the insurer, but what is their role in the claims process and why do insurance companies appoint them?
What does a Loss Adjuster do?
A Loss Adjuster is an independent party, usually brought in to investigate large or complex claims. When you make an insurance claim, your insurer may appoint a Loss Adjuster to investigate your claim and assess its validity.
Although the Loss Adjuster’s services are paid for by the insurance company, the Adjuster is employed by an external company and does not work directly for the insurer. The Loss Adjuster has no stake in the claim and should be able to provide an impartial view; however, that doesn’t mean they won’t want to act in the insurance company’s best interests. The insurer is unlikely to appoint the same Adjuster again if they are unhappy with the results, so it is in the Loss Adjuster’s best interests to keep the settlement fees as low as possible.
Why do insurers appoint Loss Adjusters?
Insurance companies appoint a Loss Adjuster to help assess large or complex claims – usually when the claim is above a certain value. As an impartial party in the claims process, the insurer will appoint a Loss Adjuster to establish whether the damage is covered by the insurance policy on behalf of the insurer. They will also recommend the appropriate payment based on their assessment.
The Loss Adjuster will probably be your first point of contact after you initially file an insurance claim. It will likely be the Loss Adjuster who visits the site of loss to assess the damage, rather than an employee of the insurance company. During this visit, the Loss Adjuster will record the extent of damage, take photographs, ensure the site is secure and advise both the policyholder and the insurer on the best course of action.
The Loss Adjuster will compile a report based on their investigation. This report will include assessments on the amount being claimed for, whether the claim falls within the terms of the policy and whether the conditions of the policy have been met. It will be passed on to the insurance company to process your claim.
Can the policyholder employ their own Loss Adjuster?
When you make an insurance claim, you can appoint your own Loss Adjuster to help you through the claims process. This person is called a Loss Assessor.
Unlike the Loss Adjuster, whose role is to remain impartial, a Loss Assessor works for you to help you get the maximum compensation you’re entitled to. A Loss Assessor can also help with any problems or concerns caused by the damage, such as finding temporary housing or getting help with repairs.