A credible estimate is critical in determining the proper amount to pay on a claim. If you start with a bad estimate, the indemnity and expense of the claim can be higher than necessary.

Protect a Valuable Asset
Claims adjusters can lose their credibility from the start of the claim negotiation process with a thoughtlessly prepared estimate. Conversely, erosion of credibility also may be suffered if opposing experts’ reports demonstrate a more thorough understanding of the platform and assumptions used.

We all have heard the saying “garbage in, garbage out” and the same holds true for estimates. Not many years ago, handwritten estimates detailed the amount of material with factors applied for different types of labor. This was a subjective way of writing estimates. With the advent of computer estimates, careful inventory, diagram, and measurements provide estimate input which results in a more objective and accurate end product. Pricing within the programs is researched and supplied by experts who gather and verify such data. They essentially have made writing an estimate less labor intensive. But beware; it also can mean faster but less accurate estimates.

Understanding the Process
The purpose of the estimating platforms, such as Marshall Swift Boeck, Xactimate, Simsol and others, is to provide a means to enter necessary elements of the repair process and derive a quantification of the value of the work. Successful end products depend on organized methods and approaches to inventorying the repair process necessary to return the structure to a pre-loss condition.

These companies employ expert researchers who survey contractors and suppliers across the country to determine current market conditions. Through their research, a body of information about the costs of each line item is assembled and verified so that within the estimating engine accurate pricing is available across the country. This does not relieve the adjuster from knowing if there are particular localized materials or labor price fluctuations.