How to Deal with Insurance Adjusters

You will have to work with an insurance adjuster from your homeowners insurance company if you decide to file an insurance claim. The insurance adjuster assesses your property, gathers evidence on the extent of the damage, and makes a decision on your claim.

However, keep in mind that the adjuster is not your advocate. The adjuster is paid to calculate the lowest possible compensation on behalf of your insurer. You can prepare for the adjuster's inspection by making an itemized list of your belongings, understanding your policy's exclusions, taking meticulous notes of your meeting, and describing your property loss with thoughtful language.

Preparing for the insurance adjuster's visit

When your home is damaged by a peril covered by your home insurance, the following are the steps you should take:

Contact your insurance company. Before the adjuster arrives, they can answer questions and may ask you to gather information about your home.
Make a report. You may also need to file a report with your local fire department or sheriff's office, depending on what happened to your home. Make copies of the reports for your insurance company. These documents provide a detailed account of your loss and serve as evidence to support your insurance claim.
Meet the insurance adjuster. An insurance adjuster will visit your home to gather information about the scope of your loss. The findings of the adjuster determine the amount of compensation you will receive. You are not required to be present during this investigation, but you may want to attend to ensure that the adjuster does not overlook any damaged areas of your home.

What to do after an insurance adjuster visits your property

After the adjuster's visit, you must submit any information related to your claim within the time limit specified by your policy. You may be required to submit:

A statement that describes the loss
An inventory of personal property that has been lost or damaged.
Damaged structure specifications
Receipts for additional living expenses if you are unable to live in your current residence.

Having an itemized inventory, keeping a log of your meetings with the adjuster, and understanding your policy limits can make dealing with the insurance adjuster easier. And, while it's important to be truthful about your claim, you should avoid implying that you're to blame.

Keep an itemized list of your lost or damaged property

When your insurance company inquires about your property damage, provide them with an itemized list of your personal belongings.

This home inventory shows what you own and how much it is worth, as well as giving the adjuster an idea of what needs to be replaced after a loss.

Insurers are required to replace your items or provide a comparable replacement. As a result, if you provide an adjuster with detailed information about your assets, you can increase your chances of receiving full compensation for your loss.

Keep a log of any meetings with the adjuster

When you're assigned an insurance adjuster, keep a journal or spreadsheet of your interactions.

Record the date and time of your conversations, as well as a brief description of what was said. If possible, obtain paper or electronic copies of any reports or statements made by your adjuster. This will assist you in remaining organized throughout the duration of your case.

Be honest about your loss

Whether you have to provide an account to your insurance adjuster during or after their visit, you should always be truthful.

If you are required to sign any documents, make sure they are true. Making false statements to the adjuster will jeopardize your claim. If you mislead your adjuster, you will not be compensated under your homeowners policy. Worse, you could face a lawsuit for insurance fraud.

Understand your policy's exclusions

If you are unsure about what your policy covers, especially when discussing your property damage with the adjuster, your claim may be denied.

Assume your property experiences heavy rainfall and high winds one night. During the storm, a strong gust shatters your front windows, and rain soaks everything. Your policy would cover claims for this type of water damage if you took precautions prior to the storm, such as closing your windows.

A typical homeowners policy, however, does not cover flood-related water damage. If you tell the adjuster about the rain damage and say your home was "flooded" by the storm, your coverage may be voided.

Avoid suggesting you're to blame

While it is critical to be truthful with your claims adjuster, you should avoid making statements that suggest you are to blame for your property damage. Because your policy does not cover property losses caused by your own negligence, your adjuster will listen for statements implying you caused the damage.

For example, if a tree falls through your roof during a storm, you shouldn't tell the adjuster that you suspected the tree was rotting and had been meaning to cut it down for months. This type of statement implies that your property was harmed as a result of your inaction.

You should avoid giving the adjuster a recorded statement. However, your policy may require you to take an oath examination. If this is the case, avoid contradicting yourself or implying that you are to blame for the incident. Consider working with a public adjuster, a knowledgeable professional who can walk you through the claims process, to prepare for the statement.

What are a public adjuster's fees?

Once your case is completed, a public insurance adjuster will charge you a percentage of your insurance payout. This person can negotiate with your provider's adjuster about the damage to your property in order to settle your claim. You won't have to pay a public adjuster unless your insurer compensates you. A public adjuster, on the other hand, may charge a service fee of 10% to 15% of your claim's payout after your case is settled.

Assume your home is completely destroyed in a fire. Fortunately, you have insurance that will cover the cost of rebuilding your home up to $250,000. If you hire a public adjuster to assist you, that person may receive between $25,000 and $37,500 from your claim. This might not be enough to cover the entire cost of rebuilding.

Because of their fee structure, public adjusters typically only accept large claims. As a result, if you intend to file a claim for a minor loss, such as a series of broken windows, you may be unable to hire a public adjuster.

If you are unable or unwilling to hire a public adjuster, speak with a customer service representative from your insurer. This person may be able to assist you in understanding the requirements for filing claims under your policy.

How to dispute insurance claims and payouts

When an adjuster rules on your claim, you may be disappointed if they offer a small settlement or reject the claim entirely. However, if you are dissatisfied with the outcome, you still have options.

Examine the payout documents. Sign any offers from your insurer unless you are completely satisfied with your compensation.
Make contact with the company. Request an itemized list of how your estimate was calculated from your insurance agent or a customer service representative.
Reexamine your case. You can also request that the insurance adjuster re-evaluate your property and its damage.

A reexamination may be beneficial if you have new evidence that you believe the adjuster should consider, such as documents demonstrating the value of your damaged property.

What if the estimate is still too low?

You can file an appeal with your state's insurance commissioner if you believe your insurance adjuster's estimate is still too low. You must demonstrate that your insurance company is acting in bad faith or is refusing to accurately appraise your property loss.

The state's insurance commissioner will advise you on your next steps and may contact your insurance provider to facilitate a resolution. If the commissioner's office rules that your complaint isn't justified, your only option is to hire a lawyer and go to court.