I previously wrote a blog about the importance of getting a public adjuster involved at the outset of your claim. In this video blog, I talk about another advantage to having a public adjuster involved from the beginning of the claim, and that is that they can help set a favorable reserve for your claim
Many people may not know what reserves are. The reserve is money earmarked for the eventual claim payment. The claims reserve funds are set aside for the future payment of incurred claims that have not been settled and represent a balance sheet liability. Having worked for one of the major US insurance companies, I can tell you that besides simply knowing how much money to set aside for a claim, reserves are often used as a target. The claims managers like to see claims resolved below the reserves. On the other hand, they hate to see them resolved above the reserves. There are often many internal hurdles that adjusters and attorneys representing the insurance company must clear to get approval to settle a claim above the reserve amount. Further, it is also helpful for adjuster to be known for setting accurate reserves.
How then can the public adjuster help? The answer is simple, by getting involved in the claim early, the public adjuster can create an estimate and present it at the first meeting with the company adjuster. There can be discussions about the proper reserve which can result in a more favorable reserve being set for the policyholder.
With a favorable reserve set, resolving the claim in a fair and equitable matter becomes much easier. The claim can be assigned to an adjuster with the proper authority and the internal hurdles mentioned above are no longer an issue. This should result in a quicker and more reasonable settlement of the claim.