March 31, 2025
Insurance adjusters play a crucial role in assessing claims and ensuring policyholders receive fair compensation for their losses. However, missteps in the adjusting process can lead to disputes, legal issues, and even accusations of bad faith practices. Whether you’re a new adjuster or a seasoned professional, avoiding these common mistakes is key to maintaining credibility and fairness in the industry.
Don’t Rush Through Inspections
One of the biggest mistakes an adjuster can make is conducting a rushed or incomplete inspection. Overlooking critical damages or failing to document all areas of loss can result in undervalued claims, disputes, and costly appeals. Take the time to thoroughly assess the situation, document everything, and ensure nothing is left out.
Don’t Ignore Policy Details
Insurance policies are complex, and each claim requires a thorough understanding of the policy’s coverage, exclusions, and limitations. Failing to review the fine print before making a decision can lead to incorrect claim denials or approvals that put the insurer at risk. Always cross-check the claim against the actual policy language.
Don’t Delay Claims Without Justification
Policyholders expect timely responses and resolutions. Unnecessary delays—whether due to lack of communication, poor organization, or avoidable bureaucracy—can frustrate customers, escalate disputes, and even lead to legal action for bad faith handling. Keep claimants updated and move the process forward as efficiently as possible.
Don’t Underestimate or Overestimate Damage
Providing an inaccurate damage assessment can lead to major problems down the line. Underestimating damage can leave policyholders struggling with out-of-pocket expenses, while overestimating can result in insurers overpaying and creating financial risks. Work with experts, use industry-standard estimating tools, and ensure your valuation is as accurate as possible.
Don’t Dismiss Additional Evidence from the Policyholder
Homeowners and business owners often gather their evidence, including repair estimates, expert opinions, and photographs. Dismissing or refusing to consider valid supporting documentation can come across as biased or bad-faith handling. A fair adjuster reviews all available evidence before making a decision.
Don’t Communicate Poorly or Unprofessionally
How an adjuster communicates can make or break a claim experience. Being unclear, unresponsive, or dismissive can damage trust and escalate tensions. Adjusters should provide clear explanations, answer questions thoroughly, and treat every policyholder with respect and professionalism.
Don’t Forget That Every Decision Has Consequences
Adjusters carry significant responsibility, and every decision impacts real people’s lives. Cutting corners, failing to follow up, or neglecting due diligence can have long-term financial and emotional consequences for claimants. Stay professional, ethical, and diligent to uphold the integrity of the industry.
A great insurance adjuster is thorough, professional, and fair. By avoiding these common mistakes, adjusters can protect their reputation, reduce disputes, and ensure that policyholders receive the service and compensation they deserve.