Insurance companies commonly hire a third-party independent insurance appraiser to evaluate claims. This typically happens because insurance companies do not have the resources to staff the appraisers needed for every claim that gets processed. Hiring independent adjusters allows the insurance agencies to process claims quickly and efficiently.
It’s beneficial for the claimant to utilize the help of an independent insurance appraiser, as well. Since they are able to remain more objective because of their third-party status, these professionals often save time and money for the claimant.
There can be some confusion for claimants as to how these third-party sources get paid, however. Find out more about how independent insurance adjusters get hired and paid during the claims process.
About Independent Insurance Appraisers
There are two key reasons why independent adjusters get hired. There is either an influx of claims and not enough in-house adjusters, or an independent source is needed for statutory reasons. Although the amount of claims submitted yearly fluctuates, this number does often increase during inclement weather or natural disasters.
Hiring an independent insurance appraiser has many benefits. It not only helps ease the workload for insurance companies, but also generates more trust on behalf of the claimant. Independent adjusters often help to facilitate or negotiate claim cases, as well. Because of their versatile backgrounds and specializations, independent adjusters are a great resource for both the insurance company and the claimant.
Fee Schedules and Payment Structure
Independent adjusters often work for an independent adjustment firm. This is beneficial because an insurance office typically chooses an independent adjustment firm to work with exclusively. The fee for the adjuster’s work is then split with the firm and paid out as either a flat fee or per hour.
A fee schedule is a predetermined amount that is agreed upon by the insurance adjustment firm and the insurance company per claim closed. Independent adjusters garner a percentage of this fee on a per claim basis by their firm. Therefore, the claimant never has to worry about how to pay their independent insurance appraiser. Payment is predetermined by the firm depending on the type of claim.
The amount that independent adjusters make varies greatly. Their work is entirely dependent on how many claims are filed and if they are chosen to assess claims. The number of claims filed is often impacted by the time of year and any catastrophes that occur. Their pay is also impacted by the type of claims they assess. Auto, property, heavy equipment, and catastrophic claims impact the amount of loss and how much damage is appraised.
For more information on Colorado independent insurance appraiser pricing and fees, contact Moulton Claim services.