Public Adjusters and Contents Estimation

As a public adjuster, your time is incredibly valuable. You are constantly managing client calls, monitoring claim updates, and preparing for negotiations with insurance carriers. Within each claim, there are certain steps that are often beyond your control, such as:

• Conducting a contents inventory

• Estimating the value of contents

In this blog post, we will specifically address the challenges of contents estimation, as it is a major bottleneck in the claim cycle that many public adjusters struggle with. Whether you handle estimation yourself, have an in-house team, or outsource it to a third party, finding a good solution to regain control over this process will have a profound impact on your business.

What Challenges do Public Adjusters Face in Estimation?

Residential contents estimation presents a range of challenges that professionals in the field commonly encounter.

These challenges include:

• Long delays for estimates which lead to extended claim cycle times.

• Inaccurate estimates resulting in lengthy settlement negotiations.

• The cost of estimation tools or solutions is too high.

• Estimation tools can be frustrating to use due to their steep learning curves.

In addition to these general challenges, public adjusters face their own unique set of challenges:

• Carriers demanding proof for estimated prices

• Lack of solution vendors tailored to their needs.

This leads us to ask: How has today's solution landscape evolved for public adjusters?

Undoubtedly, there have been significant changes. To grasp these changes, we must first delve into a comprehensive understanding of what estimating software is.

What is Estimating Software?

Estimating software designed for estimating residential insurance claims enables users to determine property values with greater precision and efficiency. Typically, the features of such estimating software vary among providers, with differences in aspects like processing speed, accuracy, cost, integration capabilities, and user-friendliness. 

Comparing the top 4 estimating software in 2024 based on commonly requested features.

How can Estimation Software Address PA Challenges?

Long Wait Times for Estimates

If your estimation team or a vendor performing your estimates is overwhelmed with work, it can result in frustratingly long wait times for your estimates. You and your clients may be left waiting for days, weeks, or even months to receive the estimates.

However, estimation software can significantly improve the efficiency of estimators by automating various processes such as finding current product prices, retrieving source links, and generating estimation reports. With the use of such software, you can expect to receive your estimates within the same day. This will not only surprise your clients and their carrier but also allow you to quickly initiate negotiations and finalize the claim settlement.

Inaccurate Estimates

Inaccurate estimates can cause a multitude of problems that can greatly prolong the estimation process and require extensive editing.

For example:

• Insureds are dissatisfied because their items may be undervalued.

• Carriers may question the credibility of your estimate if they believe that many items are overvalued.

• Undervalued items can also result in a smaller settlement for your client and less profit for you.

To avoid these issues, it is crucial to use a reliable estimating software that provides accurate results. A solid estimation software should have a high accuracy rate, or at the very least, notify you when certain items require your review before your estimate is presented. When you invest in estimating software, you should be able to trust the results it provides. By using an accurate estimation software, you can significantly reduce the need for extensive editing cycles in your estimates.

Expensive Estimation Solutions

Depending on the size of your company and your scaling needs, you might consider opting for a more cost-effective estimation solution instead of an expensive one that may not provide the same level of value. For instance, estimation services, where you submit an inventory list to a third party and they provide an estimate, are typically the most expensive options in 2024.

Estimation services may not be suitable for:

• Smaller firms with lower negotiated rates with their clients.

• Firms looking to expand their operations and/or maximize profitability.

Moreover, the majority of estimating services are performed manually or rely on limited technology, which greatly hampers their ability to deliver estimates in a timely manner. This often leaves you feeling like you're paying a premium for a service that falls short of expectations. As a result, you may find yourself thinking: 

I need an in-house estimation team with a good estimating software to save the most money.

You're right. In theory, this approach could potentially save you money. However, it is essential to thoroughly compare these two options:

1. The cost of hiring someone to handle the estimation process in-house, along with the cost of using the estimating software.

2. The cost of outsourcing the estimation to a third party.

By carefully evaluating the costs associated with both alternatives, you can determine the best solution for your specific needs.

When looking for the best solution, it is essential to evaluate the expenses associated with employing a third-party estimator versus maintaining your own in-house estimation team and estimating software.

Estimation Tools Can Be Difficult to Learn 

If you're new to estimation, ask your peers which tools they use to estimate contents.

You'll find:

• Many estimators have expressed concerns about the usability and steep learning curve associated with certain estimating software.

• There is an abundance of lengthy and paid online tutorials available for these software options, highlighting the complexity of their features and functionalities.

• As a result, many estimators have been hesitant to transition to using estimating software and continue to rely on manual estimation methods instead.

If you're considering adopting estimation software, make sure to inquire about the onboarding process, training, and the timeline for your team to gain access. Understanding how quickly your team can fully utilize the estimating software is crucial, as it helps minimize technology adoption costs and frustration, while allowing you to start reaping the benefits of the new software sooner.

Carriers Demanding Proof for Estimates

Almost every claim you present to a carrier for settlement will face some resistance from the carrier regarding the validity of your prices. It's understandable, as you want to ensure your client receives a fair payout while the carrier wants to avoid overpaying. However, entering into this negotiation without a solid foundation for your estimate can make it easy for the carrier to question its credibility.

Fortunately, many estimating software options available today can enhance the validity of your estimate by providing direct source links to the online stores where the products can be purchased. One vendor, Adjust Square, even takes it a step further by including product screenshots along with the source links. This is especially useful as source links often expire over time due to website updates, rendering them useless. With screenshots, you always have proof of the product being sold online at the timestamped date of the estimate.

Adjust Square's screenshot tool captures product prices and details, adding further credibility to your estimate. 

Limited Solutions for Public Adjusters

Public adjusters are often faced with unique challenges and have to find innovative solutions to enhance their business. It's no secret that solution providers don't always cater to the specific needs of public adjusters due to the relatively smaller market size and lack of awareness. 

However, public adjusters still have various technology solutions available to help them grow their businesses:

1. They can consider hiring an in-house development team or third-party vendor.

2. They can utilize free, open-source software solutions.

3. They can explore working with software vendors from outside the insurance industry who offer products that cater to their specific needs.

4. They could also work with neutral software vendors within the insurance industry that provide customizable software solutions suitable for any use case.

Section Summary

After understanding how estimating software can help public adjusters overcome their estimation challenges, you may be curious to discover which estimating software is most suitable for your needs.

Check out our article where we answer the question: Who Has the Top Insurance Estimation Software in 2024? or continue reading below to learn about our top choice for a PA's estimating software.

Is there an Estimating Software that Has ALL of These Benefits?

As discussed throughout this article, there are various estimating software options available that can effectively address some of the challenges faced by you and your firm in residential contents estimation. Many public adjusters choose to adopt a mixed approach, incorporating different solutions and strategies. This often involves starting with an estimating software that covers a few challenges and then supplementing with manual tasks, such as:

• Creating and utilizing customized pre-filled spreadsheets.

• Conducting comprehensive online searches to fill in any missing items on the spreadsheets, including price, description, and source link (URL).

• Reviewing any inaccuracies found in the product estimates generated by their estimating software.

• Manually categorizing products for accurate reporting and depreciation purposes.

• Manually capturing screenshots for high-value items.

• Tailoring the estimation report generated by the software to align with personal preferences and requirements.

However, for many, these tasks can seem overwhelming and time-consuming, taking away valuable time from you and your clients. If you are already paying for an estimating software, shouldn't it handle these tasks for you?

Fortunately, there is a solution that can eliminate all of these manual tasks and address all of your estimation challenges effortlessly. By using Adjust Square's AI Estimator, you can streamline your workflow and save time and effort.

Conclusion

This comprehensive article provides information that public adjusters need to know when addressing challenges related to estimating residential contents.

By now, you have gained insight into:

• The various challenges that public adjusters encounter when estimating residential contents.

• The definition and potential benefits of estimating software for public adjusters.

• How Adjust Square's AI Estimator can effectively tackle the challenges faced by public adjusters.

In the current era of technology, businesses across industries are constantly seeking innovative solutions to add value to their operations and clients. As a public adjuster, however, this can be particularly challenging due to the limited availability of technology providers in your field.

Fortunately, the landscape is evolving, with the introduction of new products and solutions that cater specifically to your needs. These offerings are now accessible to you, allowing Adjust Square to equip your team with the most advanced estimation tools in the market. By leveraging these tools, you can effectively scale your business and deliver exceptional results for your clients.