How to Negotiate With Insurance Claim Adjusters

In exchange for a premium payment, an insurance company promises to pay a claimant in the event of a loss. It’s the job of an insurance adjuster to deliver on that promise.

They do this by investigating the incident, determining liability, and reviewing damages to settle a claim. They also inspect and adjust losses in person, called field adjusting. Learn more by clicking here.

Investigating

Insurance adjusters investigate whether your car accident or home damage is covered by your policy, and they decide how much money the insurance company should pay you if it is. They interview you and other parties and witnesses, review documents like police reports, and hospital bills, and inspect the damaged property. They may ask you questions that seem intrusive or repetitive, but this is to ensure they have the facts about what happened and the full picture for their determination of liability.

The insurance industry is filled with jargon, but it can be hard to understand. An insurance adjuster (also called an insurance loss assessor or an auto loss assessor) is the person who investigates your car or home insurance claim after you file a request for a settlement. Whether they are working for your car or home insurer, the job is always in service of the bottom line. This includes preventing fraud, which can be a misdemeanor or felony punishable by fines and prison.

Valuing

In addition to investigating claims and determining the assignment of liability, insurance adjusters must also evaluate the damages. This involves physically examining the damage, often traveling to repair shops (for vehicle repairs) or to hospitals for medical records and patient information (for bodily injury claims).

They will photograph your property, take notes, and consult with roofing and fencing experts. They will then put all this together in a report with a monetary recommendation on how much your insurer should pay for your loss.

They may use several valuation types, including replacement cost, actual cash value, and agreed value. They may also include sublimits for additional living expenses, personal property, and other special categories.

Negotiating

It’s not a skill many people need on a daily basis, but learning to negotiate with an insurance claim adjuster is critical for ensuring you receive fair compensation for your damages. This task may be difficult to tackle alone, but an experienced attorney can provide guidance throughout the process.

Regardless of how much damage an accident caused, you must realize that insurance adjusters are motivated to pay out the lowest possible amount for your claim. They are not on your side, and they will attempt to exploit your lack of knowledge of insurance law to get away with paying you less than your claim is worth.

You should never accept the first offer made by an insurance company. The first offer is typically far too low as a negotiation tactic in order to see if you will be tempted to accept it without negotiating further. Make sure you always communicate with the insurance adjuster in writing to ensure there is a paper trail.

Filing a Claim

The insurance adjuster, whether a company employee or an independent contractor, will communicate with you throughout the process. Remember that they work for the insurance company and not you and their goal is to settle your claim quickly at as low a cost to them as possible.

Consumer advocates suggest you keep a record of all written communication with the adjuster. That way you can prove anything that might become an issue in the future. It’s also a good idea to talk to your agent about the insurance company’s policies long before you have to file a claim. Some agents are obligated to report discussions about potential claims even if the policyholder decides not to file a claim.

Understanding how an insurance adjuster works can help you have a more pleasant experience working with one. However, if you feel that an adjuster is biased or not working in your best interests, consider hiring a public adjuster or attorney. Continue reading the next article.