Claims Adjusting Practices and Procedures
The claim lifecycle
Acknowledge, contact, investigate, evaluate coverage, reserve, document, negotiate, settle, and pursue recovery. Coverage analysis comes before money. Confirm the policy in force on the date of loss, the named and additional insureds, the insured property or occurrence, the peril, applicable exclusions, and the limits and deductibles. When coverage is uncertain, issue a reservation-of-rights letter; if the insured objects, use a non-waiver agreement.
Investigation and documentation
Take recorded statements, inspect the scene, gather photos, diagrams, weather and police reports, proofs of loss, and examinations under oath where the policy permits. Treat the claim file as future evidence: date every contact, quote the insured accurately, and state the basis for each decision. Never promise payment before coverage is confirmed - apparent authority and estoppel can bind an insurer to a position the adjuster had no authority to take.
Valuation and recovery
Distinguish ACV from replacement cost, identify physical, functional, and economic depreciation, and watch for betterment. Total losses require a market-value or ACV computation and a salvage decision. Protect subrogation by timely notice, refusing releases of the tortfeasor, and watching South Carolina's three-year limitations period. Appraisal resolves disputes about the amount of loss only - never coverage.
Traps
Paying before confirming the policy was still in force. Overlooking a condition (late notice, no proof of loss) that prejudices the insurer. Confusing appraisal with arbitration. Adopting an unlicensed contractor's estimate as the benchmark.
Rule of thumb
Write every file note as though the insured's attorney and a jury will read it. If a decision cannot be defended in one sentence, the investigation is not finished.