Best Practices for Adjusting Fire Loss Claims
Adjusting fire loss claims can be one of the most challenging aspects of property insurance—emotionally charged, technically complex, and full of high-stakes decisions. But with the right approach, you can navigate the process smoothly and support policyholders during one of the most stressful events of their lives.
Here’s a breakdown of the best practices to keep in mind when adjusting fire loss claims, whether you're just starting out or looking to sharpen your skills.
1. Respond Quickly and Compassionately
The initial response sets the tone for the entire claims process. Fire losses often leave policyholders feeling overwhelmed and vulnerable. Arriving on-site promptly—and with empathy—helps build trust. Introduce yourself clearly, explain your role, and let them know what to expect next. Small gestures, like offering bottled water or bringing along an emergency contact checklist, can go a long way.
2. Ensure Scene Safety and Secure the Property
Before diving into documentation, make sure the site is safe. Coordinate with fire officials to confirm that the structure is stable and no further hazards exist (like smoldering debris or compromised roofing). Encourage the insured to board up windows, tarp roofs, and mitigate further damage—this isn’t just a best practice, it’s often a policy requirement.
3. Thoroughly Document the Damage
Use a systematic approach to document the damage. Take wide-angle and close-up photos of each room, damaged items, and structural elements. Don’t rely on memory—use voice memos, video walkthroughs, or a damage inventory app to record observations. Every piece of documentation helps when you get to the estimate and negotiation phases.
4. Review the Policy in Detail
Before discussing coverage or setting expectations, review the policy thoroughly. Look at limits, deductibles, endorsements, exclusions, and the specific cause of loss provisions. Did the fire spread from a neighboring property? Was arson involved? These details matter. If you need to investigate further, be transparent with the policyholder about the process.
5. Establish a Clear Scope of Work
Work with contractors, engineers, or mitigation companies to develop a clear and agreed-upon scope of loss. This ensures accuracy and avoids unnecessary disputes down the line. Make sure to separate cleanable items from those that require replacement, and take depreciation and salvage value into account if applicable.
6. Maintain Open and Ongoing Communication
Nothing frustrates a policyholder more than feeling left in the dark. Keep communication consistent. Provide updates even if there’s no major progress—something as simple as “We’re still waiting on the engineer’s report, I’ll check back Thursday” goes a long way. Be proactive, not reactive.
7. Stay Current with Codes and Best Practices
Building codes change. So do best practices in restoration and mitigation. Stay sharp by attending industry trainings, subscribing to updates from restoration professionals, and networking with other adjusters. This helps ensure your estimates reflect current standards and avoid surprises when it’s time for repairs.
Adjusting fire loss claims is as much about people as it is about property. By staying organized, communicating clearly, and handling each claim with empathy and expertise, you’ll not only protect the insurer’s bottom line—you’ll also provide meaningful support to families when they need it most.
And that’s what makes this work worth it.