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Adjusters

A Loss Consultant is considered as part of Financial Services in Canada therefore we at Integral Consultants do not charge HST. Our duties are considered to be instrumental in determining value for an insurer. We will provide a report or service and advice by providing Loss Appraisal Reports, Damage Assessment Reports, File Audit Reports, Forensic Restoration Reports, and be responsible for Large Loss Coordination and Remedial Management to insurers for property claims.

Over the years, I have been asked numerous times "What does a Property Loss Consultant do?" "Who are you?" "Doesn’t the adjuster do that?" "Doesn’t the contractor do that?" "Isn't it up to the insured to do that?" etc...

My favorite is "Aren’t you a Public Adjuster?" Well the answer to this is a categorically... "NO". The adjuster, the contractor nor the insured can do what we do.

A Loss Appraiser is not a public adjuster, nor quantity surveyor, but property loss specialist that work with the insurer and insured as a Restoration Manager which is commonly referred to as a "Large Loss Coordinator" today.

Covering all aspects of the restoration process, in order to put the insured back into the position they were prior to the loss, and some of process can be misconstrued as improvements and betterments. However these changes are sometimes necessary in order to rebuild on the same site especially if there is an influence from one or more government agencies that get involved with the restoration process.

Restoration services are dramatically changing from what they were 10, even 5 years ago. More and more consultants are now involved in the restoration process of a fire or water damaged building. Even the contents replacement services as we know it is changing. Obtaining replacement estimates for large schedules from suppliers is becoming a service of the past. Sometimes obtaining a simple police report has become a chore for the adjuster to acquire.

Years ago the term "Loss Consultant" was closely tied in with a public adjusting firm, but that is not always the case today. The term is becoming a general description for property loss specialists usually emanating out of the insurance industry. These individuals usually have years of experience behind them as insurance company executives and managers who have a wealth of knowledge that they can bestow on behalf of the consumer or the underwriter. They can provide assistance in numerous areas including extent, type and cause of damage, loss prevention, insurance buying, assisting in statement of values, assisting in providing a reasonable and sufficient proof of loss etc.

Another question asked quite often was "Who pays for our fees?" This question made us research who actually paid for our services whether we were retained by the consumer, the insurer, the independent adjuster, or the broker. Surprisingly enough it was the insurer who ether issued the cheque for our services or reimbursed the insured over 90 % of the time over the years. Our fees form part of the administration cost of the underwriting or claims service.

Each consulting firm provides different services depending upon the experience of the professionals in the firm. Here are the services we at Integral Consultants provide.

The first step to take is to complete a Damage Assessment Report in order to determine the scope of damage, and assessment of restoration required.

When a building, be it agriculture, commercial, industrial, institutional, or residential suffers a loss due to fire, smoke, water, wind, impact, vandalism, etc. the most accurate method to determine the extent and cost of the damage is an independent damage assessment.

The restoration company, who has performed the emergency service or who is an approved contractor by the insurer, has a vested interest in being the restoration contractor assigned to the repairs.

We are not the restoration contractor and have no monetary interest in performing the restoration. It takes a trained person to evaluate all the different logistics aside from the actual damaged property to provide an accurate assessment of restoration.

The method is to provide a detailed scope of damage and an assessment of restoration which is not a bid but is divided into 16 reconstruction sections that break it down even further into individual tasks or trades. Logistics plays an important role in this as well.

By providing this service and these values the consumer can protect their invested interests better and makes informed decisions as how they want to proceed with the restoration process. The adjuster can reduce his administration costs in determining accurate value.

The next step would be to audit the restoration process of the building. It is designed to control and review the progression from our first report to the final turn key completion of the property. It will oversee the recovery of the property from the emergency service stage and can continue throughout as the rebuilding process as necessary. It will include for both the building and the occupancy design fixtures a Loss Appraisal Report as well as the Damage Assessment Report in order to monitor the proper use of the limits paid out from the claim so that the insured does not experience themselves running out of funds that should have been sufficient in the settlement. This goes back to our third paragraph in this section.

Site inspections are conducted at crucial stages in conjunction with the restoration contractor as required. They are

• emergency service
• demolition
• permit application
• site work
• concrete work
• masonry work
• metal work
• framing enclosure
• exterior doors and windows
• building envelope
• exterior finishes
• rough in electrical, plumbing, ventilation, and heating services
• insulation
• drywall
• interior millwork
• floor coverings
• electrical and plumbing fixtures, heating and/or air conditioning plant
• interior and exterior decorating
• specialty construction
• punch list

We will complete a progressive job costing of costs for material, equipment rental, and labour charges at different intervals where the restoration contractor will require completion draws.

By being involved from day one, we can complete a standard deficiency inspection that is a visual assessment of the condition of the building at the time of inspection. The inspection and inspection report are offered as an opinion only, although every reasonable effort is made to discover and correctly interpret indications of previous or ongoing defects that may be present. Normal wear and tear is conducive with age and type of occupancy, which may or may not become an issue in the cost to restore unless warranted.

A visual inspection may not accomplish the capability to determine the extent of damage and an exploratory inspection may be required. This is a standard deficiency inspection that can be described as an exploratory, visual examination and that may or may not be technically exhaustive. This means we have to dismantle or damage any part of the property or building components in order to collect data or make observations. This type of inspection will allow us to be able to make topical observations, however other specialist may be required such as specialized engineers. It is to be expected that this type of building inspection will generate the comprehensive, thorough analysis that examination by a specialist or engineer can offer in order to write a detailed accurate scope of damage.

Finally...

ENGINEERING SERVICES ARE CRITICAL TO COST CONTROL

Every Loss Consultant works with engineers that are approved by the insurer as well as having their own preferred engineers on hand who work with them over the years and when structure, building envelope, or bearing strata is questionable, a consultant will always bring in and engineer to verify the safety, and integrity of the structure.

These engineers more than always have a two part series to play in a loss – the first being a safety aspect for emergency service personnel to enter the site to do their work and the second being to visit the site after the demo and cleanup has been completed in order to survey the actual damage caused by the loss and report on a solution to rectify the damage. All too often these engineers and specialists only get to see the site the first time and their warnings in their initial reports go unheeded.

On major losses they need to be retained to monitor the site as necessary from a progress point of view as well.

Normally the engineer or specialist gets called in almost immediately after a fire has occurred. Usually if there has been no demolition performed or there is contents or debris in the way of a thorough inspection, you will find a standard clause in their report stating that and additional damage may be present. They like to follow up after the demolition is complete just to review the structure while it is open again which is relatively inexpensive for that second trip compared to what the claim could soar to if not addressed correctly.

Also often overlooked, after a loss has occurred is who manages the restoration site? This can be a more critical decision than who does the restoration work.

Outside influences such as government bodies can directly impact how the restoration process is going to take place. If the insured is not confident that the restoration contractor can effectively manage this, then an experienced claims auditor has the experience to negotiate terms to a successful solution. Sometimes referred to as restoration management services our service incorporates into the equation design services, budget auditing and problem solving.

A consultant should have many years of experience keeping a project on course by having been a restoration manager; they can speak the language of all parties, and can effectively communicate directions and concerns, to the trades.

Without competent supervision, restoration contractors and the inevitable construction problems that arise during a project can quickly cause the loss to get out of control. Most restoration projects are site managed by the restoration contractor. Letting the contractor have a "free rein" to make decisions may seem harmless, until you consider the consequences.

When a restoration contractor is placed in a bid situation, this usually means stripping away restoration details that could be considered frivolous but are still part of the quality of construction that the insured had before the loss occurred. Saving money on the project costs is now the contractor's priority.

Restoration project site management requires extensive and diverse restoration experience. Assessing the conditions, scoping the damage, and estimating the cost of the restoration correctly, the site manager should be able to have the project completed in an efficient and timely manner staying within budget.

Although a competent restoration contractor can handle the daily site management, who do you think he's going to protect? As an active claims auditor we provide a site management service to protect the integrity of the loss and the restoration cost. By the time a contractor has made the decisions to make changes in the scope of the damage to the property, getting it back on track can be very expensive. If you don't challenge those decisions, you imply acceptance. Trying to get the contractor to correct the deficiencies after they have completed a phase and covered things up is nearly impossible. Preventing this is our role.

Stopping a project, before costs and problems get out of control, is often the most cost effective decision. Knowing when to make that call, can save money, legal costs and a restoration nightmare! Change orders should be issued by a claims auditor and not at the request of the contractor. It should always be the adjusters, or the insured’s decision to make changes, and not the contractors!

Your claims auditor we will scope the damage, assess the conditions of the risk, estimate the cost or repair, provide a schedule of the work to be performed, provide all necessary loss reports and revisions, qualify the contractor and sub trades, and obtain WCB and CGL certifications, negotiate permits, attend all site meetings with engineers, inspectors, etc., site supervision, quality control inspections, etc., provide weekly status reports, until the completion certificate is signed and the deficiencies are corrected to the satisfaction of the insured.

In summary this service can:

• Keep the Project on Budget and Schedule
• Assist in qualifies all Trades who work on the Project
• Assist in locating Suppliers for Materials & Equipment
• Resolves on site situations and orchestrates decisions before they become problems
• Find resolvable solutions for concerns of Municipal and other Government Bodies
• Fast track the Restoration Process to reduce Business Interruption or Additional Living Expenses