The Truth About Insurance Adjusting: Navigating The Challenges And Rewards

Being an insurance adjuster can be a stressful job, as adjusters are responsible for investigating insurance claims and determining the extent of an insurance company's liability. This involves handling property claims and liability claims, inspecting damage, reviewing documentation, and negotiating settlements. While it is a stable career with high demand and flexibility, the process of negotiating with distressed parties can be challenging. Additionally, insurance adjusters work on behalf of insurance companies and may be perceived as being in conflict with policyholders, as their role involves minimising payouts.

Insurance adjusters are not on your side

After an accident, it is natural to assume that insurance companies will work hard to get to the bottom of what happened. You might even believe that your insurance company is obliged to represent your best interests. Unfortunately, this is not the case.

They Don't Work for You

Insurance companies are for-profit corporations. Their biggest concern is their bottom line. They would rather pad their own pockets than yours. At the end of the day, they care more about their shareholders than you.

They Know Their Settlement Offer Is Too Low

"Lowball offers" are standard practice for insurance companies. This is how they make their money. Remember: insurers are some of the richest corporations in the world.

In fact, insurers often like to set their initial offers so low that, even if they have to bump up the offer during the negotiation process, they'll still ultimately save money.

They Plan on Using Your Statements Against You

Insurance adjusters have been trained to look for statements or actions that they can twist into admissions of liability or acts inconsistent with your claims. They might even try to lead you into making contradictory statements or saying things against your best interests.

They Are Legally Required to Assess Your Claim in Good Faith

"Good faith" is a complex legal doctrine that's premised on the notion that people should treat each other honestly, reasonably, and fairly. And that's exactly how insurance companies are required by law to assess your claim.

When insurers investigate or negotiate a claim in bad faith, they can get into a lot of trouble. In fact, they might even have to pay you (the victim) a lot more money in the form of punitive damages.

They Are 100% Capable of Paying You a Lot of Money

If you've been injured in a car crash, or if you've suffered losses because of it, you deserve to be compensated. While the legal system cannot undo injuries or turn back time, it can award you adequate compensation to help you pay your bills and get your life back on track.

And make no mistake about it: the insurance companies have plenty of money to make that happen.

How to Protect Yourself

The best thing you can do to protect yourself when dealing with insurance adjusters is to speak to an experienced personal injury lawyer. An attorney can ensure that your right to seek compensation is respected by insurance adjusters and send a message that your claim is to be taken seriously.

Remember, insurance adjusters are not your friend. They work for an insurance company that is only interested in limiting the money they have to pay out to claimants like you.

Adjusters are in direct conflict with policyholders

Insurance claims adjusters are not on the side of the policyholder. Their role is to negotiate on behalf of the insurer with the aim of minimising or avoiding a payout. This means that adjusters are fundamentally in conflict with policyholders.

Claims adjusters are responsible for evaluating and processing insurance claims. They work with teams of specialists, including appraisers, claims examiners, and investigators, to assess the validity of a claim. This involves reviewing relevant documentation, investigating criminal activity or fraud, and determining the extent of the damage and the insurance company's liability. Ultimately, the adjuster will decide to deny the claim, delay processing, or make an offer.

While adjusters work for the insurance company, they are not on the insurer's "side" either. Their role is to act as a neutral negotiator and bring both parties to a satisfactory agreement. However, because the adjuster is hired by the insurance company, policyholders may perceive them as being biased against them.

In reality, adjusters are simply doing their job, which is to evaluate claims objectively and determine a fair settlement amount. They are not trying to take advantage of policyholders or deny them their rightful compensation. However, it is important for policyholders to remember that adjusters are not working on their behalf and may not have their best interests at heart.

To protect their interests, policyholders can consider hiring their own independent claims adjuster. An independent adjuster works for the policyholder and will negotiate with the insurance company to minimise the policyholder's loss. This can help balance the playing field and ensure that the policyholder receives a fair payout.

Adjusters negotiate on behalf of the insurer

Adjusters are negotiators, and their goal is to settle or bring to a satisfactory state the differences between the insurance company and the policyholder. They are hired by the insurance company to investigate claims and determine if the company is liable for paying out damages, and if so, how much should be paid out in compensation to the injured party.

Adjusters are trained in ways to reduce compensation and deny liability. They are not looking for the truth but for ways to save the company money. They are not obligated to have the policyholder's best interests in mind.

Adjusters typically handle multiple claims at once and are under pressure to resolve claims as quickly and cheaply as possible. They are often friendly and personable, but this does not mean they are acting in the policyholder's best interests.

Adjusters may employ various tactics during negotiations, such as making a lowball offer to test the policyholder's negotiation ability or knowledge of the claim's worth. They may also delay responding or avoid calls to pressure the policyholder into accepting their offer.

It is important for policyholders to be prepared when negotiating with adjusters, have supporting evidence, and know their bottom line. Policyholders should also be aware of their rights and not be afraid to turn down offers that are lower than what they expect or deserve.

The role of an adjuster is to minimise or avoid a payout

An insurance adjuster, also known as a claims adjuster, is a person who investigates an insurance claim to determine if the insurer should pay for damage or injuries, and if so, how much they should pay. They are not on the side of the policyholder; their role is to negotiate on behalf of the insurer with the intention of minimising or avoiding a payout.

Adjusters work for the insurance company paying the claim. They will review what happened and estimate the claims payment. This involves inspecting the damage, looking at police reports, talking to witnesses, and asking for more information when reviewing a claim. They may also interview those involved, collecting recorded statements from people involved in the loss, such as drivers, passengers, and witnesses.

Adjusters are used for all types of losses, including property damage and bodily injury. They are responsible for protecting the interests of the insurance company, with their main focus being to prevent an overpayment or any payment on an exaggerated or otherwise illegitimate claim. Adjusters very often try to convince property owners to accept less money than their claim is worth.

In the case of a car accident, for example, an adjuster will verify that you have the applicable coverages and that the damage is covered. They may also work with you to get your vehicle inspected or set up repairs. If your vehicle is totaled, the insurance company will pay you the actual cash value of the vehicle, minus your deductible.

Adjusters are also involved in property damage claims, where they carry out a detailed investigation into the claim by inspecting the damage, reviewing police reports, speaking to witnesses, and talking to property owners.

Overall, the role of an adjuster is to act as an intermediary between the policyholder and the insurance company, evaluating claims, assessing damages, and negotiating settlements to ensure fair resolutions. While they aim to prevent overpayments, they also work to ensure that both sides are content with the settlement.

Adjusters try to convince property owners to accept less money than their claim is worth

Adjusters often try to convince property owners to accept less money than their claim is worth. This is because adjusters are hired by insurance companies and work on their behalf to negotiate and minimize payouts. While it is not uncommon for insurance companies to compile values that disagree, adjusters are incentivized to resolve these differences in favor of their employers.

Adjusters use various tactics to convince property owners to accept lower payouts. One common tactic is to delay the claims process by not responding to calls or emails, hoping that the claimant will accept a low-ball offer out of desperation. Another tactic is to create a false sense of urgency by imposing deadlines for accepting an offer, even though there is usually room for further negotiation. Adjusters may also attempt to trick claimants into admitting fault, which can reduce the value of their claim. For example, in the case of water damage, an adjuster might ask if the windows were locked during a storm, implying that the claimant failed to mitigate the damage.

It is important for property owners to be aware of these tactics and not give in to pressure from adjusters. Instead, claimants should focus on gathering evidence to support their claim, such as photos, videos, repair estimates, and receipts. If necessary, claimants can also hire a public adjuster or an attorney to advocate on their behalf and help ensure a fair settlement.

Frequently asked questions