What is a loss adjuster?
The Chartered Institute of Loss Adjusters describes a loss adjuster as an impartial evaluator who specialises in handling and resolving insurance claims. Loss adjusters are commonly appointed by insurers, although a policyholder can also appoint their own loss adjuster in some circumstances.
According to CILA, the role can include assessing damage, identifying the cause, checking the policy and whether its conditions have been met, considering the amount claimed and recommending how the claim should be resolved.
The contractor and loss adjuster have different roles
A building contractor focuses on the construction side of the loss: what is damaged, what needs to be removed or repaired, how the work can be carried out, what it is likely to cost and how the repair should be sequenced.
The loss adjuster’s role is broader and connected to the insurance claim. They may review cause, policy cover, quantum and the proposed settlement. A contractor should not present themselves as determining coverage simply because they are discussing the works with the adjuster.
What information may pass between them?
- Photographs and site observations.
- A room-by-room or trade-by-trade scope of works.
- Dimensions, quantities and itemised costs.
- Moisture or drying information where relevant.
- Specialist reports provided by others, such as leak-detection or structural reports.
- Explanations of repair methodology and sequencing.
- Material specifications or matching issues.
- Clarification of assumptions, exclusions and provisional allowances.
- Variation information if concealed damage is discovered after authorised opening-up.
Questions and challenges are normal
Loss adjusters and insurers may query a contractor’s quote. A request for clarification is not necessarily a rejection of the repair. It may be an attempt to understand why a particular item is required, whether the quantity is supported, whether another repair method is suitable or how the cost has been built up.
A contractor can respond more effectively when the original scope is clear and the evidence is organised. Photographs, measurements and a concise explanation of methodology are usually more useful than broad assertions that a repair is simply “necessary”.
What happens when strip-out reveals more damage?
Insurance claims can develop after work starts because some conditions are concealed. If authorised opening-up reveals additional damage, the contractor should record what has been found, explain why it changes the scope and price the additional work. Where practicable, approval should be obtained before the extra reinstatement proceeds.
This is also why an initial quote may contain sensible assumptions or provisional allowances rather than pretending that every concealed condition is known in advance.
Communication should be authorised and accurate
Where a contractor communicates directly with an insurer or loss adjuster, the policyholder should understand and authorise that communication. The contractor should describe their own observations and proposed building works accurately, distinguish fact from assumption and avoid making legal or insurance-coverage judgments outside their role.
Loss adjuster does not mean loss assessor. A loss adjuster is commonly appointed by an insurer, whereas a policyholder may appoint their own representative. The precise role and duty depend on the appointment and circumstances.
The value of a clear contractor record
A contractor who keeps an organised record of the project can make claim review easier. That record may include the original scope, quotation, photos, correspondence, approved variations, progress records, testing or commissioning information and completion photographs. Good documentation does not determine coverage, but it helps explain what was proposed and what was actually done.
Sources and further reading
The following authoritative sources were checked when preparing this guide:
