Differences between Loss Assessors and Loss Adjusters

Imagine this scenario: you've just experienced a devastating fire or a serious water leak that has caused extensive damage to your property. Your first instinct is contact your insurance company, hoping that your policy will cover the cost of repairs. But as you navigate the complex world of insurance claims, you realise that the process is confusing, quite overwhelming and very time-consuming and involving lots of different steps with lots of different parties involved. This is where a loss assessor can come in - a professional who can help you through the claims process and ensure you receive the compensation you are entitled to. However, many people don't know that such a job exists and don’t understand the difference between a loss assessor and a loss adjuster, because these terms are often used interchangeably, and the roles of both professionals can be confusing. Below are the key differences between loss assessors and loss adjusters, and when to use each one to ensure a fair settlement for your insurance claim. So, whether you're a homeowner or a business owner, read on to discover how these professionals can help you navigate the insurance claims process and ensure that you receive the compensation you deserve.

Difference between a Loss Assessors vs a Loss Adjuster

Loss assessors and loss adjusters both play a critical role in the claims process, but their responsibilities and qualifications differ. In the UK, the Financial Conduct Authority (FCA) regulates the insurance industry and has established guidelines that must be followed by loss assessors and loss adjusters alike. The FCA's guidelines are designed to ensure that these professionals act in a fair and unbiased manner, and that policyholders receive a fair settlement from their insurance company.

The Role of a Loss Adjuster

Insurance companies want to avoid paying out large settlements so they might employ the services of a loss adjuster to investigate a claim on their behalf and to help them establish whether or not they will accept liability for a claim.

Loss adjusters are claims experts who are hired and compensated by insurance companies to assess claims on their behalf. Their main responsibilities include determining the cause of the loss and whether it is covered under the policy. To do this, they conduct on-site visits to gather evidence and evaluate the damage. In some instances, the insurance company may also appoint other third parties to work alongside the loss adjuster, and these parties may affect influence the insurer’s limit of liability.

After their investigation, the loss adjuster submits a report to the insurance company, recommending the appropriate payout based on their interpretation of the validity of the claim. Essentially, they assess the claim from the insurer's point of view.

Since they are paid by insurance companies, loss adjusters may attempt to secure the lowest possible settlement. Their focus is on finding evidence that could potentially negate the claim, which is why it's crucial to have a qualified loss assessor on your side. A loss assessor will negotiate with the insurance company on your behalf to ensure that you receive a fair and reasonable settlement.

Loss adjusters are not there to advise you on the best approach to making a claim; rather, they examine the incident in the context of your policy and their remit with your insurer.

They will not assist you if you wish to challenge a settlement offer. The burden of proof falls on you to demonstrate that you are entitled to more than the amount recommended by the loss adjuster to the insurance company.

In some cases, loss adjusters may appear to be working against your best interests. However, hiring a loss assessor early on in the process can help ensure that your claim is expertly negotiated and your interests are protected. Waiting until after the loss adjuster has submitted their report can make it challenging to challenge their decision.

The Role of a Loss Assessor

A loss assessor is an independent professional who is hired by a policyholder to manage the claim on their behalf. They are experts in their field, with a deep understanding of insurance policies and claims procedures. Their primary goal is to ensure that their clients receive a fair settlement in the event of a loss, whether it be due to fire, water damage or other circumstances covered by the policy.

What Does a Loss Assessor Do?

A loss assessor's role is to manage the claims process from start to finish. They work closely with policyholders to understand the nature of the loss and the impact it has had on their lives or businesses. They then present the claim to the insurance company or their representative, documenting the damage and outlining the scope of work required to reinstate the property. A loss assessor will often have their own network of experienced contractors and speciliaists that they can call upon to provide reports and quotations to assist with the presentation of the claim.

Once liability is accepted for the claim, the loss assessor will negotiate with the insurance company's loss adjuster to reach a fair settlement. This can involve engaging third-party experts, such as surveyors or engineers, to assess the damage and determine the appropriate compensation. Throughout the process, the loss assessor keeps the policyholder informed, providing guidance and support to help them navigate the claims process with confidence.

Types of Claims That a Loss Assessor can help you with

Loss assessors can assist with a wide range of claims, including:

• Fire and smoke damage
• Leaks and water damage
• Flood damage
• Storm damage
• Impact damage
• Explosion
• Lightning
• Subsidence

In all cases, the loss assessor's role is to provide support and advocacy for the policyholder, ensuring that they receive the compensation they are entitled to under the terms of their policy.

The Role of the FCA

In the UK, the Financial Conduct Authority (FCA) regulates the insurance industry, including loss assessors. The FCA sets standards for conduct and requires that all loss assessors be registered and licensed to practice. This ensures that policyholders receive professional, reliable and ethical service from their loss assessor.

When Should I Appoint a Loss Assessor?

Enlisting the services of a loss assessor as early as possible can greatly impact the success of an insurance claim. The reason for this is that a loss assessor is able to provide expert guidance and support throughout the claims process, from initial assessment to final settlement. By appointing a loss assessor early on, they can help to gather crucial evidence and documentation, assess the damage or loss, and ensure that all necessary steps are taken to present the strongest possible claim to the insurance company.

Waiting too long to appoint a loss assessor can hinder the ability to prepare and present a successful claim. It can also make it difficult to challenge the decision of a loss adjuster appointed by the insurance company, who may have already conducted their own investigation and submitted a report. In some cases, it may be too late to rectify any mistakes made during the early stages of the claims process. It cannot be stressed enough that the moment you realise you need to submit a claim, appointing a loss assessor is essential for optimal results.

Loss Assessor Fees

When it comes to hiring a loss assessor, one important consideration is the fee they charge. Loss assessors typically use two main charging models:

• Percentage fee: In this model, the loss assessor charges a percentage fee based on the final settlement figure. The fee can vary but is often up to 10% of the settlement. For example, if your settlement is £100,000, the loss assessor's fee could be up to £10,000.
• Fee-free but tied to recommended contractors: In this model, the loss assessor doesn't charge a fee directly to the policyholder. Instead, they recommend contractors or other service providers to carry out the repairs or other work required. The contractors pay the loss assessor’s fees on.
  
  

It's important to note that each claim is different, so there isn't a one-size-fits-all fee. Therefore, it can be difficult to compare costs between loss assessors without speaking to them directly. To get an accurate idea of costs, it's recommended to contact several loss assessors operating in your area and ask for quotes or estimates.

It's also important to consider other factors when choosing a loss assessor, such as their experience and expertise, reputation, and track record of successfully negotiating fair settlements on behalf of policyholders. You may also want to ask for references and check online reviews before making a decision.

In conclusion, when it comes to managing an insurance claim, hiring a loss assessor can have numerous advantages over relying solely on the insurance company's adjuster. From a more personalised and proactive approach to a greater understanding of your rights and entitlements, a loss assessor can provide you with the expertise and support needed to navigate the claims process successfully. By working with a reputable and experienced loss assessor, you can ensure that your interests are protected, and you receive the full compensation you deserve. Remember, when it comes to your insurance claim, don't settle for less than what you're entitled to – hire a loss assessor and let them fight for your rights.