There is virtually no standardization within the commercial contents adjusting field.
Insurance carriers cover approximately $10 Billion annually in US commercial contents claims. Studies estimate that carriers over-pay these claims by 20 – 30% due to process gaps. This equates to billions of dollars in annual leakage, settlement delays and frustrated customers.
Commercial contents claims cover a wide range of products and often involve specialized or technical equipment. It is not reasonable to expect any single adjuster to have the requisite background and experience to determine:
- What is the appropriate like kind and quality replacement equipment for a four-year-old company wide IT system consisting of 200 separate components (servers, switches, routers, computers, printers, etc.).
- The current replacement value for specialty tools at a manufacturing company destroyed by a flood.
- Actual cash value for dental equipment damaged by a tornado.
- Whom to call for advice on fair replacement value for commercial kitchen equipment, furnishings and inventory damaged/lost in a restaurant fire.
Adjusters are invariably pressed for time. They often times rely on the insured party to provide them with an inventory of lost/damaged items and valuation information—-not the ideal situation! This process can result in settlement delays and valuation controversy.