As an insurance adjuster, you will be confronted with adjusting all types of losses. These building or dwellings will not look alike nor will they be constructed the same. These buildings will be of different sizes and shapes and varying types of construction; moreover, there will be a different degree of damage to each building. Clearly, a comprehensive knowledge of building construction, its practices, quantities, material type and costs is an essential qualification of the successful adjuster.
It is also clear a truly comprehensive knowledge of basic building construction is gained only through experience. This session is restricted to provide you with only basic information about building construction. Furthermore, the discussion is restricted to only residential properties, both dwelling and outbuildings.
There are several reasons why an adjuster must have a grasp of basic information about building construction. First, an adjuster must be able to “talk the builder’s language.” The adjuster who has a command of the essentials components of building construction will approach a loss with a feeling of confidence. Secondly, such knowledge is essential if the adjuster is to gain the respect and cooperation of both the insured and the contractor.
We will attempt to confine this lesson to basic information relating to construction methods of the most frequently encountered building materials and to simplify our procedures for estimating the costs.
It is directed primarily to the property loss adjusters who are non-builders, but whose daily work places them in the position of preparing estimates of damage or checking estimates that have been prepared by experienced builders. For the adjuster to increase his/her proficiency, it is suggested that further reading and study on the subject be pursued.
At the outset we must realize very few estimates are fully complete and accurate. It depends upon the source of materials, labor costs as well as the approach the contractor employs toward the actual doing of the job, i.e. his/her judgment as to what is to be done – whether to repair or tear out and replace. He/she can err, as to measurements and quantities as well as qualities of materials.
Therefore, a basic knowledge of building construction is mandatory if the adjuster is to train himself/herself to detect incorrect quantities, incorrect prices, improper methods of restoration, the use of better or more costly materials than originally existed in the structure, and doubling up of calculation. In all fairness to the builder, it should be noted that on occasion an estimate will be found to be inadequate as to material or labor necessary. In such an event, the contractor may go back to the property owner for more money, thus resulting in a request for the claim to be reopened.
Equally embarrassing is the discovery an adjuster failed to detect previous damage, which is included in a contractor’s estimate or the inclusion of structural defects in no way related to the loss. These can be general improvements, enlargement, work required by local ordinances (Code Upgrades) and possibly even items already included in the contents claim, which were not detected.
An adjuster should be able to estimate the cost of repairing small or medium size losses, and he/she also should be competent in checking the details of any estimate made by a contractor. Unfortunately, contractors do not always submit their estimates in enough detail to be checked and there is a never-ending educational effort throughout the country to get builders and sub-contractors to furnish adequate breakdowns.
Lump-sums charges for painting, drywall, electrical or carpentry items are not acceptable in the insurance adjusting business because they cannot be checked for material quantities and prices, nor can the hours or labor and hourly rate charged are verified.
It is no more unreasonable for an insurance company to require details of a claim than it is for a customer to ask the grocer, garage mechanic or the tailor for a detailed bill. Without itemization of the repair costs, it is virtually impossible to analyze the repair cost to show an insured where the differences are between the adjuster’s estimate and the contractor’s estimate.
Again, without the knowledge of basic building construction, the adjuster will not be able to properly verify or prepare an estimate and unfortunately will be at a serious disadvantage.
A dwelling has few main parts – foundation, floor frame consisting of bearing posts, joists and girders, walls and partitions built of studding and the roof structure. Other framing members are incidental to one of these parts.