Insurance

Question 1

What is the difference between a Loss Adjuster and a Loss Assessor?

Answer 1

A loss adjuster works on behalf of the insurer. They are responsible for investigating and assessing insurance claims to determine the extent of the loss and the appropriate settlement amount.

A Loss Assessor works on behalf of the policyholder to ensure they are best represented and getting the best settlement possible.

Question 2

How would your instruction be different when working for a Loss Assessor vs working for a Loss Adjuster?

Answer 2

Working for a Loss Adjuster:
* Preparation of a SoW, tender package and project manage remedial works

Working for a Loss Assessor:
* Assessment of damage with a cost estimation

Question 3

Why do contractors need PI Insurance?

Answer 3

Contractor’s require PI insurance in the event that they are undertaking design work, e.g. in a D&B contract.

Question 4

What is a Reinstatement Cost Assessment (RCA)?

Answer 4

A reinstatement cost assessment is an evaluation conducted to determine the estimated cost of rebuilding or replacing a property in the event of damage or destruction.

The purpose of a reinstatement cost assessment is to calculate the amount of insurance coverage required to adequately protect a property. It ensures that the insurance policy’s sum insured is sufficient to cover the full cost of reinstating the property to its original condition following a covered loss, such as fire, flood, or other types of damage.

Question 5

What would you look for during an RCA?

Answer 5

• Full measurement of the building
• Any non-standard features
• Existing condition

Question 6

Can you name some Specified Perils?

Answer 6

• Fire
• Flood
• Impact damage
• Burst pipes
• Explosion etc

Question 7

What are Specified Perils?

Answer 7

Specified perils refer to a specific list of named risks or events that are covered by an insurance policy. These perils are explicitly mentioned in the policy document, and coverage is provided only for those risks specifically outlined.

Question 8

What is the purpose of Contractor’s All Risks insurance?

Answer 8

The primary purpose of CAR insurance is to cover physical loss or damage to the construction project itself, including materials, equipment, and the structure under construction. It provides coverage for perils such as fire, theft, vandalism, accidental damage, natural disasters, and other unforeseen events that can cause property damage.

Question 9

What are some insurance limitations and restrictions?

Answer 9

• Exclusions, e.g. specific services covered
• Coverage limits
• Failure to notify