This post is part of a series sponsored by CoreLogic.
When disaster strikes and a policyholder submits a claim, adjusters must quickly produce a comprehensive estimate of the damage so that restoration and replacement procedures can be placed in motion. For so many claims, these pricing estimates must include an estimation of both structural losses and damage to personal items.
The personal items estimation process is particularly complex and time-consuming due to the sheer number of items that estimates must frequently include. Complexities in pursuing this portion of estimates are compounded by difficulties in determining values for each item. For example, assigning a value to an electronic item that is no longer available takes a lot of research and, thus, precious time. Also, no matter how prolific an adjuster’s research is, they still may end up over or under pricing that item.
Insurance carriers should leverage technology solutions that help them overcome the three main challenges of items estimation: delays in estimate creation and inaccuracies in items estimates leading to policyholder distrust and dissatisfaction, and the costly involvement of third parties.
Delving into the Challenges of Contents Estimation
- Long delays in contents estimation
Creating a personal items estimate can be time consuming, often taking months to locate replacement pricing through extensive internet research that can be challenging to organize. Delays can also occur because items estimation may be deprioritized due the urgency of other claim actions such as emergency repairs, cause and origin investigations, and the creation of the structural estimate. This adds to the overall claims cycle time, increasing administrative expenses for insurance carriers and reducing policyholder satisfaction.
- Inaccurate claims payments
It’s common — and even understandable — to issue inaccurate payments based on incomplete and inaccurate priced item estimates. Underpayment causes customer dissatisfaction, while overpayment results in claims leakage. Inaccuracies also lead to policyholder frustration and distrust, potentially requiring additional time and expenses to the insured and carrier.
Carriers often outsource the personal items component of estimating. This, however, is an expensive option for getting the job done. On top of that, the work isn’t done when independent adjusters or service providers finish—the estimate still must go back to in-house adjusters for review.
The more parties you involve, the more expensive and time-consuming the process will be—especially when there are inaccuracies or policyholders dispute the estimate.
A Solution for Adjusters: A Centralized Web-Based Personal Items Estimation Technology Solution
To address these challenges, in-house adjusters can leverage personal items estimation creation software that enable users to conduct web-based searches on all items — a centralized base to conduct comprehensive Internet research on all items in an estimate. Leveraging a web-based solution to produce items estimates, insurance companies will streamline and create more efficient workflows.
One example of a web-based personal items estimation solution from CoreLogic is Contents™ , a self-serve function within Workspace™, a comprehensive end-to-end claims workflow management solution with resources for inspectors, property adjusters, and even restoration professionals.
Contents allows adjusters to enter an inventory of items into a web-based search engine that determines the most up-to-date pricing of each item. When an adjuster selects an item from the search results, which yield a full Internet search, it is automatically added to the estimate. Users can combine all the items for which they’ve determined pricing into a priced items inventory, making for easy estimate creation. Within one view, Contents calculates replacement cost, depreciation, and Actual Cash Value of personal items, all within an easy-to-read format.
Since Contents is embedded within Workspace, adjusters do not need to navigate multiple systems to complete an estimate and move it through review and validation processes. For every claim, users can create both items and structural estimates within Workspace.
How Contents Addresses Common Challenges with Items Estimating
With its intuitive Internet-based search component, Contents dramatically reduces the time needed to research and price items. When identical items are unavailable, users can search for replacement items of similar like, kind, and quality in this system, too. Contents streamlines and shortens the items estimation process by eliminating the need to consult multiple sources for pricing and without having to outsource the process. This solution allows for pricing searches on different items within the same user-friendly interface.
Being part of Workspace, Contents allows adjusters to create structural and items estimates within a centralized system, reducing both estimate and cycle times. Having both claims in one system simplifies the processes of reporting, reviewing, and tracking.
To assure that users price items accurately, Contents provides current pricing proof, promoting good relationships between carriers and policyholders during the claim reconciliation process. Users have documented online pricing sources to show policyholders, increasing trust and reducing disputes, which also shortens claims cycle times.
Contents also eliminates the need for carriers to involve third parties in the items estimation process as adjusters can quickly price out a comprehensive and accurately priced inventory on their own. Keeping control of the file disposition in-house saves time and claims costs.
Use Contents
Using a web-based solution that integrates with other claims solutions brings tremendous value to the claims estimating process. Contents helps adjusters overcome major challenges in personal items estimation, reducing the time needed to complete estimates, enhancing policyholder trust, and increasing the efficiency and independence of in-house adjusters, ultimately saving time and reducing costs.
To learn more about Contents™ from CoreLogic, contact us today.
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