What is Bad Faith Adjusting? Is my Insurance Company/Contractor Actingin Bad Faith?

Bad faith adjusting will end your career...

When you are adjusting in bad faith you are intentionally setting the claim up to be fixed (cleaned up) by another adjuster later on down the road.  In other words, you are being lazy!  Bad faith refers to breach of contract when dealing with all involved parties (including contractors) who will assume you are acting in good faith and fair dealing.  Acting in bad faith will end your career and can also put you in jail!

Bad faith involves being dishonest or fraudulent in a claim.  Examples of bad faith claim handling could be:

• Entering into an agreement without any intent of living up to the terms that have been agreed upon. (not fulfilling the contractual obligations to the insured based on what is written in their insurance policy)


• Knowingly misrepresenting the quality of an item you are attempting to settle with the insured.


• Intent to deceive or mislead in order to gain some sort of advantage.


• Failure to thoroughly investigate a claim.


• Failure to promptly investigate the insured's property.
  
  
  
  • Time periods that are deemed acceptable in reference to the above item will be defined in the insurance policy.


• Unreasonably delaying or denying payment.


• Refusing to settle the claim in its entirety. (intentionally providing a "less than fair/reasonable" settlement on an item)

Bad faith is also a two way street.  Insureds (policy holders) and contractors may also be found guilty of acting in bad faith.  It usually involves falsifying information in an attempt to mislead the insurance company.  Yes, this includes eating deductibles!

5 Important Tips for New Adjusters

So you are brand spanking new to the industry.  You've received all of the training and certification you need to begin adjusting your first batch of claims.  You then get the call from your independent insurance vendor to deploy you to your first storm site and start your exciting new career as an insurance claims adjuster.  What do you do now?  Don't worry!  We've all been there before!  Here are 5 important tips for new insurance claims adjusters:

1.) Show up early!

     When you are deployed to a storm, you are usually given 48 - 72 hours to get to a specific office or building listed by your independent adjusting firm.  It is EXTREMELY IMPORTANT that you show up on time for your first meeting!  Important state adjusting guidelines and regulations will be reviewed during your orientation.  It is a strange new territory for you.  So it's easy to get lost!  Make sure you give yourself enough time to find the building, and navigate your way to the orientation room.  Its usually a good idea to arrive the day/night before your given arrival date.  Take this extra time to scope out the area so you can be sure to show up on time!

2.) Pack enough clothing and equipment to last you for a few months

     Rookies will typically only pack enough clothing to last them for a few weeks.  It is not unusual for an insurance claims adjuster to be on a storm site for several months.  Think of the future weather conditions and pack accordingly.  For example, if you get called out on a storm in late September, pack some long sleeved clothes and a warm jacket; because you might be there when it is snowing!

3.) Book a hotel room ASAP!

     After a large storm event it is not uncommon for hotel rooms to sell out faster than your daughter's concert tickets for Justin Bieber!  Homeowners, utility workers, and other insurance adjusters will be fighting you for a hotel room.  Utilize search engines to find nearby hotels.  The destination that your independent insurance firm gave you will most likely be the office that you will work from; and hand your paperwork in.  Try to find a hotel close to this location at the beginning of the storm.  Once you have a few claims under your belt and you are feeling more confident, then you can search for a hotel closer to where some of your claims will be.  If hotel rooms are all sold out, look on websites like Expedia, Priceline and Hotels.com.  Most hotels will hold back specific rooms in their facilities for these companies exclusively.  So if the hotel you want has been listed as "no vacancy", then you may be able to squeeze in with one of these 3rd party companies.

 4.) Physically introduce yourself to all of your managers!!!!!!

     This goes for your insurance carrier's management and your independent adjusting firm's management.  I CANNOT STRESS TO YOU HOW VALUABLE THIS IS FOR FUTURE RE-DEPLOYMENT OPPORTUNITIES!  Sorry for the CAPS...  But you need to really pay attention to this one!  Your managers are your key to get deployed again in the near future!  If your managers see your face often and know who you are, then they will think of you for future opportunities.  It doesn't matter how much experience you have, YOU MUST DO THIS IF YOU WANT TO CONTINUE WORKING ON A MORE CONSISTENT BASIS!  Make it a habit to go into the office at least every other day and talk with your managers and peers.  This is a great chance for you to learn valuable tips and tricks from experienced adjusters.  Plus it'll prevent you from feeling lonely and homesick during your deployment.  Your co-workers will usually ask the people they know to "extra-curricular activities" during time off (i.e. dinner, beers, and even casino's or other activities popular in the area).

5.) Accept constructive criticism humbly and keep your chin up!

     You are the rookie... There is no getting past that.  Frustrating homeowners and workflows are bound to throw a wrench into your diabolical master plans...  So don't be shocked if everyone and their mom wants to ride along with you for a co-adjust during the duration of your first storm.  Regardless of how much experience you think you have, it is inevitable...  It may seem annoying to some of you, or it may be a God send for some of you who are eager for a security blanket.  Just nod your head and say "Yes sir/ma'am".  Some of the tips and corrections that will be given to you may seem stupid and pointless; however it is important to make a mental attempt to perform these tips/corrections throughout the storm.  The people who co-adjust with you will actively look through your files to see if you are making an attempt to "do what they say".

Storm season starts in less than a month and a half!  Where does the time go?!  So make sure your bags are packed and that you have purchased all of the equipment that you will need!  Give your vehicle a fresh oil change before you head out.  Your vehicle is about to take a lot of miles and abuse, so show it some love!  Good luck to all of you and keep in touch!  Let me know if you have any questions or concerns throughout your deployment. :)

Devin

How to prepare for your insurance claim

Merry Christmas all! A new page has just been added to Insurance Adjuster Help!  If you are a homeowner who has filed an insurance claim, but you are unsure where to start or what to do, then visit the "How can I prepare for my insurance claim?" page!  On this page, we will discuss how to prepare for your insurance claims adjuster's visit and offer valuable information that will aid you during the inspection process.  This is a great place to get started if you are new to the insurance claims process.