“Experts” Hired by Your Insurance Company.

When it comes to property damage insurance claims, insurance companies typically hire experts, such as engineering companies, to assess the damage and provide an estimate for repairs. While the use of experts can be beneficial to both insurance companies and policyholders, there are also potential issues and conflicts of interest that can arise.

One of the most significant issues with the relationship between insurance companies and their experts is the potential for bias. Insurance companies often have long-standing relationships with certain engineering firms or other experts, and may be inclined to use them exclusively for all of their claims. In some cases, these experts may be more inclined to provide estimates that favor the insurance company, rather than providing an objective assessment of the damage and the necessary repairs. Additionally, experts may feel pressure to find damage that is not covered by the policy, which can result in a denial of the claim.

Another issue is the large sums of money that insurance companies pay these experts for their services. In some cases, the fees paid to these experts (especially where there’s substantial repeat business involved) can be significant, which can create a financial incentive for the expert to provide estimates or reports that favor the insurance company, rather than providing an objective assessment of the damage and the necessary repairs.

There is also the issue of scope of work (or the insurer’s instructions to the “expert” with respect to the inspection and/or report to be prepared), which is defined by the insurer, in order to control the fees and expenses incurred by the insurer. The scope of work may not be adequate, such that the experts may not provide a full and thorough assessment of the damage, which can leave the policyholder shortchanged.

Given these potential issues, it’s important for policyholders to be aware of their rights and to take steps to protect themselves. One of the most important steps is to hire their own experts to assess the cause and extent of the damage and/or provide an estimate for necessary repairs. By doing so, policyholders can ensure that they are getting an objective assessment of the damage, and that any estimate for repairs is fair and accurate.

In addition, hiring their own experts can help to level the playing field, by providing a counterbalance to the experts hired by the insurance company. This can be especially important in cases where there is a dispute over the amount of damage or the necessary repairs, as it can provide an independent assessment that can be used to support the policyholder’s claim.

When hiring their own experts, policyholders should look for individuals or firms with experience in property damage assessments and repairs. They should also make sure that the expert is independent and not beholden to any insurance company or other entity. This can be confirmed by asking the expert about their relationships with insurers, and by checking for any conflicts of interest.

In conclusion, the relationship between insurance companies and their experts can be fraught with potential issues and conflicts of interest. Policyholders can protect themselves by hiring their own experts to provide an objective assessment of the damage and necessary repairs. By doing so, they can level the playing field and ensure that they are being treated fairly by their insurance company. At Parrish Law, we understand the importance of having an objective assessment of property damage, and we work with a team of independent experts to ensure that our clients are getting the best possible representation.