In insurance, an adjustment refers to any change made to a policy or a claim after it has been issued or submitted. This could involve updating cover, premiums, or the value of a claim, based on new information or changing circumstances.
Adjustments help ensure that policies remain accurate and that claims are settled fairly. They can be made by the insurer or the policyholder. In the context of a claim, an adjustment is typically handled by a Loss Adjuster (appointed by the insurer) or a Loss Assessor (acting on behalf of the policyholder), who reviews the situation and recommends an appropriate outcome.
Examples of adjustments in insurance
Policy amendments
If your circumstances change, such as upgrading assets, altering how a property is used, or adding new equipment, your insurer may make a mid-term adjustment to reflect the updated level of risk and cover required.
Premium recalculations
If information comes to light that affects how the risk is assessed, your insurer may adjust your premium. This could result in the cost going up or down, depending on the change.
Claim settlements
During a claim, the insurer may adjust the settlement amount based on factors such as policy limits, depreciation, repair estimates, or underinsurance.
When do adjustments usually happen?
Adjustments can happen at several points during the life of an insurance policy or claim. Most commonly, they occur when something changes that affects the level of risk, cover, or the value of a claim.
At policy start or renewal
If information is corrected or updated, for example, changes to how something is used or insured, your insurer may adjust the terms or premium to reflect this.
Mid-term changes
Adjustments are often made during the policy period when circumstances change, such as alterations, new assets, or a change in how a property or business is used.
During a claim
This is when adjustments are most noticeable. As the claim is assessed, new details may emerge that affect the settlement value, scope of repairs, or how the policy applies.
At settlement stage
Final adjustments can be made before a claim is concluded, particularly if costs, valuations, or liability are reassessed late in the process.
In most cases, adjustments are a normal part of insurance and are intended to ensure outcomes remain fair, accurate, and aligned with the policy terms.
Minimising the need for future adjustments
While some adjustments are unavoidable, many can be reduced by keeping your policy information accurate and up to date. Taking a few simple steps can help prevent delays, disputes, and unexpected changes to your cover or claim outcome.
Keep your insurer informed
Let your insurer know promptly about any changes that could affect your cover, such as renovations, business use, or high-value purchases.
Review your policy regularly
Check your policy details at renewal, and after any major life or business changes, to make sure your cover still reflects your situation.
Work with a Loss Assessor
A Loss Assessor, like Morgan Clark, can help ensure that any claim adjustment is accurate, fair, and in line with your policy terms.
FAQ
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Who makes adjustments to an insurance claim?
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A Loss Adjuster appointed by the insurer usually assesses the claim and recommends any adjustments. A Loss Assessor, working on your behalf, can prepare and submit your claim and challenge or negotiate adjustments where appropriate.
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Can adjustments increase my insurance premium?
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Yes. If an adjustment reflects a higher level of risk, for example, a change in how a property is used or previously undeclared information, your premium may increase.
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Can I dispute an insurer’s adjustment?
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Yes. If you believe an adjustment is unfair, you can challenge it by providing further evidence or appointing a Loss Assessor to act on your behalf. If the issue cannot be resolved, you can escalate the complaint to the Financial Ombudsman Service.
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Is an adjustment the same as an endorsement?
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Not exactly. An endorsement is a formal amendment to your policy documents. An adjustment often leads to an endorsement being issued, but the two are not the same thing.
For more FAQs visit: Insurance claims FAQs – Morgan Clark