If you're making an insurance claim that's likely to have a value of more than £3000, your insurance company will probably send out a Loss Adjuster. Many people are actually unclear on the difference between a Loss Adjuster and a Loss Assessor. In this post, we will look at the important points that all policyholders need to know, especially when they’re making a claim.
What does a Loss Adjuster do?
A Loss Adjuster is the person appointed to investigate your claim by your insurance company. Their first task is to establish whether your insurers are liable for your claim, so that it can be dealt with under the terms of your policy. They then decide what, in their opinion, it should cost to repair the damage or replace any lost or stolen items.
It’s arguable that their independence is compromised by the fact that they are appointed by the insurance company, who the pays their fees. They also submit their report directly to the insurer and policyholders are not usually given a copy.
So, while Loss Adjusters may claim to be impartial, they rely on insurance companies for their business. To win this business they have to follow certain service criteria and they’re partly judged on how much money they save insurers, either by minimising a claim or even rejecting it altogether.
What does a Loss Assessor do?
Loss Assessors help ensure that policyholders receive the best and most equitable settlement, rather than the minimum that a Loss Adjuster might propose and an insurer would like to pay.
Many Loss Assessors work on a ‘no win - no fee’ basis and this is usually a percentage of the final amount paid to the policyholder by the insurer. As you can see, it’s in a Loss Assessor’s best interest to ensure that a policyholder receives every penny they’re entitled to under their policy.
The way an insurance claim is prepared and presented is just as important as how it’s negotiated and settled. That’s why it’s important for policyholders to appoint a Loss Assessor as soon as they realise that they have a claim.
Key points to remember:
When you’re faced by the prospect of dealing with an insurance claim, it’s important to remember the difference between a Loss Adjuster and a Loss Assessor.
A Loss Adjuster’s role is to protect the interests of your insurance company, not yours as a policyholder. The lower the final pay out, the better a Loss Adjuster is seen to have done.
On the other hand, a Loss Assessor acts on your behalf as the policyholder. They are there to provide expert knowledge and help at a time when you may need it most.
It’s easy to believe that your insurance company’s Loss Adjuster is central to a good outcome. In fact, having a professional Loss Assessor acting for you is much more likely to help you receive a full and fair settlement.
