After you report the loss, the claim moves into the assessment stage: a site visit, a calculation, then the insurer's offer. Here, the company's weapon is no longer speed but accuracy – and knowing that the offer isn't necessarily the last word.
- At the site visit, the company is a party too: show everything, ask questions, and record what was said.
- The key items in the calculation: reinstatement cost, depreciation, deductible, limits – ask for it itemised.
- The settlement offer can be reviewed and challenged – it's worth checking it against the policy before you sign.
The site visit: joint work, not an exam
The loss adjuster works on the insurer's instructions – fairly, but the company needs to prepare too: have the policy, the inventory, the supporting documents, and the photo documentation on hand, and make sure someone who knows the premises is present. Show every affected item – anything that doesn't come up at the site visit is harder to claim for afterwards. For a remote inspection, well-organised, dated photo material is everything.
Dissecting the calculation
The main elements of the insurer's calculation are: the cost of reinstatement or replacement, depreciation (if the policy runs on an actual cash value basis), the deductible, any limits, and the treatment of VAT – for a company entitled to deduct VAT, the settlement is typically net, with the VAT paid afterwards against an invoice. Ask for the calculation itemised – this shows where it differs from the company's own figures: a different price per square metre, an omitted item, a disputed rate of depreciation. Some of the differences are misunderstandings that a document can clear up; others are questions of interpretation that can, and should, be argued.
The settlement: when should you sign?
Accepting the settlement offer closes the case – before you sign, it's worth checking: is every item included, was it calculated on the valuation basis set out in the policy, and is there no additional loss still pending (for example, a water-ingress mark that shows up later)? If the offer differs materially from a reasonable expectation, that's not necessarily the end of it: this is when I step in as broker to help – with documents and knowledge of the terms: a stuck or disputed claim. On the most common reasons for deductions, honestly: reasons for rejection.
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