BROADCASTS.com

b'

Investigating the Extent of a Property Loss  

https://zalma.com/blog

To aid the insured in his or her obligation to prove the loss, the  adjuster must, on the first visit, establish with the insured a detailed  scope of loss. This means that the adjuster and the insured (or the  insured with his or her Public Insurance Adjuster (PA)) must walk  through the insured\\u2019s house or business and agree to exactly what was  damaged and destroyed as a result of the peril insured against.  

The adjuster can get this agreement orally with a tape recorder or write  it down on paper. The scope of loss must be detailed. Descriptions,  including room dimensions; materials like moldings, flooring, wall  coverings, and fixtures; information about special features, openings,  casements, detailing, moldings, and other architectural features must be  part of the scope of loss. T

he scope of loss must be as complete and  accurate as possible on a first inspection.  The adjuster must never, at the time of the first inspection of the  damaged property:  1. take a quick look around and ask the insured to fill out a property  loss form at his convenience; 2. leave the insured with blank forms, except for supplemental items  learned of after the initial scope was completed; 3. take a partial scope and attempt to do the rest later; rely on the expertise of the insured\\u2019s public adjuster; or 4. rely on a reconstruction contractor to establish the scope.  

The adjuster should never make promises that cannot be kept. The  adjuster must advise the insured that the adjuster will \\u2013 if necessary \\u2013  be retaining experts in the valuation and repair of the type of  property that is involved. These experts will bid on the repair and  replacement from the agreed scope. The adjuster should explain to the  insured that the scope of loss may change when some demolition is done  or when an expert examines the property, to change the extent of the  scope and that it is just a first evaluation based only on visible  damage.  Before any estimates for repair are prepared the adjuster must present  the insured with a copy of the agreed scope and inform the insured that  he may, if he wishes, obtain similar opinions based on the same agreed  scope.  

The adjuster should provide two general contractors (different from the  construction consultant \\u2013 if one was used to help the adjuster set the  scope \\u2013 with a copy of the adjuster\\u2019s scope of loss. Each contractor  should prepare detailed estimates of the costs of repair based upon, and  written in the same order as, the adjuster\\u2019s scope of loss so that the  adjuster can identify the low bidder. The adjuster then should prepare  an estimate of the cost of repairs for comparison with the estimates  made by the contractors using the scope of loss and estimating programs  like Xactimate, Marshall and Swift or Boekhs. 

 \\xa9 2021 \\u2013 Barry Zalma