1. When a policy holder notifies their insurer of a loss, the insurance company will request estimates for repair or replacement, or they might appoint a loss adjuster to negotiate on their behalf.
2. The loss adjuster will investigate the circumstances of the loss and prepare a report for the insurer about what happened at the time of the loss.
3. The policy holder will then be asked to submit a fully detailed claim to the Loss adjuster, itemising all aspects of the loss and their values, with quotations for repair or replacement supporting each item claimed.
4. The loss adjuster will then consider the claim and forms their own conclusions about the loss and its value, followed by recommendation to the insurer about how much should be paid to settle the claim. To determine the final settlement figure, the loss adjuster will take into account the total value at risk and the value actually insured under the policy. The loss adjuster’s report will emphasise any under-insurance, which will reduce the amount of the settlement figure.
5. If the policy holder has engaged a loss assessor to act on their behalf, the loss adjuster will be obliged to negotiate every aspect of the claim with the loss assessor. As a result, the loss assessor will help determine the amount that is eventually paid by the insurer, securing the policy holder the best outcome possible.