Consumer Advisory: Understanding Virtual Claims Adjusting

Consumer Advisory: Understanding Virtual Claims Adjusting

Contact: Insurance Division Consumer Services Section (800) 964-1784 or [email protected]

With improvements in technology and shifts by insurers to more web and application-based services, consumers today often have opportunities to file and complete claims electronically. Your insurer may offer to assess your claim virtually, often allowing for faster settlement and payment and avoiding the inconvenience of scheduling in-person inspections. Understanding these processes and your rights are important factors in deciding whether you would like to take advantage of these options.[1]

What is Virtual Claims Adjusting?

"Virtual claims adjusting" refers to insurers investigating and settling claims using photos and videos documenting the damage instead of an adjuster inspecting the damaged property in person. Use of virtual adjusting methods is common for both auto and homeowners' insurance claims. Copies of the photos and videos are often submitted by consumers via an insurer website, mobile phone app or email to a claims department.

Your Rights Regarding Virtual Claims Adjusting

1. In-Person Option: Under Vermont law, you have the right to an in-person inspection if you prefer one. You may request an in-person inspection at any time during the processing of a claim, and an insurer may not refuse your request on the grounds that you initially elected a virtual inspection.

1. Prompt Service : Insurers must provide in-person inspection within a reasonable amount of time after your request. If an in-person examination is requested by you or otherwise required, unreasonable delay by the insurer in performing the inspection may be in violation of Vermont law.

1. Complete Assessments and Hidden Damages : Sometimes damage related to a claim is not visible on the surface of a structure or automobile. Virtual methods shouldn't be used if they would prevent an adjuster from fully assessing hidden damages that were part of the claimed loss. If you learn or believe that there is hidden damage, you may request an in-person inspection at any time during the claims process, as provided in #1 above.

1. Auto Claims Specifics: If your claim is deemed a total loss by the insurer, be aware that "reconditioning deductions" are prohibited unless they are detailed, justified and made on the basis of an in-person inspection. "Reconditioning" means making the car showroom ready.

Deductions based on the condition of the vehicle may only be taken when conditions exceed normal wear and tear associated with the age and mileage of a vehicle. Examples of condition deductions include torn seats, cigarette burns, broken interior components or dented panels. Insurers must provide you with detailed documentation of all condition deductions in the valuation report.

Need Help?

Contact the Vermont DFR Insurance Division for assistance:

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