News and Information for Moving Claims Adjusters
WHAT MAKES UP A "TYPICAL CLAIM"
FOR AT LEAST ONE REPAIR FIRM
by J. Timothy Wilson
What is your typical claim like?
We at The Wood Works, Inc. maintain an extensive data system for our moving claim services. We analyze it every six months to know how we are doing.
While we are certainly not a unique or typical "repair firm," we believe we normally handle more "corporate accounts" and more sensitive claims than we hear about from other repair firms.
Here are some observations from our data for the last four years. If you have a question I encourage you to just ask with an email to web@thewoodworksinc.com.
An adjuster needs an inspection on all claims, but repair firms generally perform "inspections only" (I/O) hoping to perform repairs or to receive "inspect & repair" (I/R) assignments. Inspections are not what allows a repair firm to survive.
Historically the share has been growing from the 20% to 25% range for several years. We notice a slight fall-off of I/O claims in 2007, for which we have no explanation.
We can't explain the change from 2004 in that back to 2001 it had been more typical. In 2007 there was a clear up-tick in "inspect & repair" assignments.
At least one major moving company ranked repair firms by the number of repairs per claim assignment, so obviously we've tracked that. We have routinely been high in the 2.7 to 3.0 range, but were particularly pleased with the 2007 ranking, a new record of 3.58.
Our view is that on every repair we saved the moving company a high-price cash settlement and an unsatisfied claimant/corporate account. We believe it reflects the breadth and depth of our repair skills.
We find the claim cost as percent of claim value really interesting. How we diagnose an "inspection only" claim does not particularly vary from an "inspect & repair" claim. We are as fair and professional to both as we can be.
Our typical repair cost and recommended cash settlements average only 25% to 30% of claim value. It helps us track how much we are saving the moving company. As far as we know that is really good.
The typical claim is made up of various types of resolution:
- Negotiate: we could not get enough information from the claimant we had to leave it to the adjuster. We minimize them.
- Denials: we recommend denials to the adjuster.
- Repairs: we repair the item, including using our wide network of third-party experts.
- Settlements: a repair is not warranted or possible within a share of value, we recommend cash settlement along with the amount that it should be. We do not just default to 100%.
- TOTAL: The total number of items on the claim, not counting residential damages that we also perform.
Note the trends over time, especially for repairs versus cash settlements.
Isn't it interesting how the number of items on a typical claim has jumped so much in 2007 over the long term history? That is nearly 1 1/2 more items to inspect, diagnose, estimate, report on, control and resolve.
Either more damages are being caused, claimants are moving with more easily damaged items, or claimants are moving with larger households.
We hope this helps moving claim adjusters have a better understanding of what at least one repair firm runs into in the course of a year.
The Wood Works Inc of Overland Park (Greater Kansas City metro), Kansas 66202 —
Should not be used by others without giving due credits.
The Wood Works, Inc. (www.thewoodworksinc.com and themovingclaims.com) is located in the Kansas City metropolitan area. We have been serving our customers for 30 years in the areas of wood restoration and repair, moving claim resolution and repair, cabinet refacing and repair and interior and exterior shutters. |
