The Daily Life of a Catastrophe Adjuster

The average day of a Catastrophe Adjuster usually starts around 6 AM and ends when the work for the day is complete, usually around 9 or 10 pm, 7 days a week. When first deployed to an area, an adjuster will receive 50-100 assignments. An assignment contains the name of the person who made the claim and contact information. All assignments must be contacted within the day of receipt or 24 hours at the latest. An adjuster will map each assignment and figure out the most time-efficient manner to inspect the claims. Once contacted, the adjuster’s responsibility is to explain the claims process, get a good idea of what the claim details are, and schedule an appointment for the inspection. All of this happens before traveling to the area of deployment. Every conversation and date of the appointment are documented in a diary to communicate with the parties involved. During a Hurricane, an adjuster typically receives more than 100 assignments on the first day. Assignments continue to come on as the days progress through the event.

Set up

Once the adjuster arrives at the event location, the adjuster will set up an office, typically in a hotel room. An adjuster will travel with all supplies needed to be efficient and effective such as a computer, printer, monitor, folding tables, chairs, and chargers for measuring tools, cameras, and other equipment. During the set-up process, assignments continue to come in and need to be addressed in the time frame. Once set up the adjuster will begin the inspection process.

The inspections

Upon arrival at a loss location, the adjuster will typically meet with the home or business owner, which is often referred to as “the insured” or “the member”, depending on the insurance carrier’s preference. The adjuster will explain the policy, including policy limits and deductibles. The adjuster will begin the inspection by walking around the loss location and noting any damage caused by the loss event. This is done by each elevation of the structure. The adjuster will measure each elevation, including windows and doors. Photographs will be taken of each elevation that includes any damage and also noting non-damage. The same is then done for a roof if the loss involves wind, hail, falling objects, or fire.  The adjuster will sketch by hand the entire roof and note any damaged areas. These notes are called scope sheets. Once the exterior of the structure is complete, the adjuster will move to the interior and inspect each room. Photos will be taken of an overview of each room, then closer documentation of any damage in that room. Each room is also measured, including any openings such as doors or windows.

The number of photos varies, depending on what is claimed. An adjuster will take around 20-25 photos for a hail loss and around 100-200 photos for a hurricane loss.

Once the inspection is complete, the adjuster will review the findings with the insured and depending on the carrier, get a verbal agreement from the insured about the loss. The adjuster will explain the claims process, time frames, how depreciation works, and how to contact the adjuster for any questions.

An inspection usually takes about an hour to complete, this depends on the amount of loss. Hail claims are a lot faster, but hurricane claims can take several days for one inspection.

At this point, the adjuster will immediately do the paperwork in their vehicle or move on to the next inspection and do the paperwork later in their hotel room.

Paperwork

How the claim is reported will vary by each carrier, but this is a typical flow of how it is completed.

     Organizing photos

• • • During a single inspection the adjuster may take hundreds of photos. These photos need to be organized. If the adjuster completed several inspections that day, keeping the photos organized is crucial.

    • For best practices an adjuster will usually take a photo of the loss notice at the beginning of each inspection, this helps identify where each assignment begins and ends.

    • Photos are sorted into different folders on a PC, identified by the insured’s name. For good practice, it’s best to use the cloud to automatically back up these photos, such as OneDrive or drop box.

    • The photos are then imported into Xactimate, ready to be sorted and labeled

    • Photos are usually sorted by Risk photo (usually the front elevation of the loss location), an address confirmation photo, the roof, the exterior elevations (front, left, rear, right. In that order), and then the interior.

    • Each photo is labeled by a description of what it is, such as “Front Elevation” “Bedroom 1” or “Left Slope”. Also, a description of the damage, such as “Wind damage to the siding on the right elevation” and “Water damage on the ceiling in the Master Bedroom”. If there isn’t damage, that should also be noted. “No visible damage on the Rear Elevation”

            Creating the estimate

• • • An estimate should be organized in the same way the photos are and by the structure. So if the loss is a residential loss, the structure should look like Dwelling > Exterior> Roof, Front Elevation, Left Elevation, Rear Elevation, Right Elevation. Interior > Living Room, Dining Room, Bedrooms. Other Structures> Garage> Garage Exterior> Roof, Front Elevation, Left Elevation, Rear Elevation, Right Elevation, Garage Interior.

    • Each area should have its own estimate. For example, a living room with a water stain will include the dimensions for replacing the insulation, drywall, paint, and also other items like removing a ceiling fan, moving furniture, masking, and cleaning. Note that these items are dependent on the carrier's specifications.

    • Once each area is estimated, the adjuster will have to make sure the deductible is applied correctly. Some events, such as hurricanes or wildfires have a separate deductible.

    • The adjuster must also decide if Overhead and Profit are warranted, meaning if a general contractor is necessary to complete the repairs. The industry standard is 3 or more trades being used, but this also varies by the carrier.

    • The adjuster must also apply depreciation to the items based on the carriers’ specifications. Deprecation is usually based on the age and condition of the items being replaced and needs to be handled by each line item. The age is usually determined by a verbal statement of the insured, but may also be determined by public records or receipts.

           The Narrative

• • • A narrative report is a typed retelling of the events, an explanation of coverage, and an explanation of what is covered and why.

    • The narrative varies by carrier and also by adjusting firm. Most adjusters keep a template for their narrative, but often one is provided by the adjusting firm.

    • A narrative can be as small as one page, such as a denial. Or dozens of pages, for losses such as a hurricane or a commercial loss

    • Narratives should be detailed, explaining each area, room, and component that was damaged.

    • A good narrative should answer any questions before they come up, so more detail will save the adjuster time in the future.

Often the carrier will require other items in the paperwork, such as a valuation of the property and a statement of loss. Once all the items are complete, the adjuster will compile the documents and either send it through Xactimate or an email. Some carriers require the adjuster to call the insured and go over the estimate.  All paperwork must be completed the same day as the inspection, if that’s not possible, no more than 24 hours.

Once the paperwork is submitted, it goes through a review process. This is usually done by the adjusting firm for quality control. If the reviewer finds items that are either errors or not up to the specifications of the carrier, they will send it back to the adjuster for revisions. This is called a ‘kickback’. The adjuster will have 24 hours to correct the paperwork and resubmit it for another review. Once the review process is complete, the paperwork is sent to the carrier. If the carrier accepts the work of the adjuster, the assignment will be closed.

During this process, the adjuster will map, contact, and schedule any new assignments that come in. The adjuster will continue this process several times a day, 7 days a week, until the event is complete. The events can last anywhere from a couple of weeks to several months.