What is an adjuster's first step in handling a claim?

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The first step an adjuster takes when handling a claim involves thoroughly reviewing the policy coverage and terms. This step is crucial because it sets the foundation for all subsequent actions in the claims process. Understanding the specifics of what is covered, the limits of coverage, any exclusions, and the rights and responsibilities of both the insurer and the insured enables the adjuster to effectively assess the situation.

By reviewing the policy first, the adjuster can determine whether the claim is valid and what the insurer's obligations are under the policy. This foundational knowledge guides the adjuster in making informed decisions on how to proceed, whether that involves contacting the claimant, assessing damages, or filing any necessary paperwork with the insurance company.

In contrast, jumping straight to contacting the claimant or assessing damages without this critical understanding may lead to misunderstandings about the claim's viability and the insurer's responsibilities. Filing the claim without first reviewing the coverage could lead to a scenario where the adjuster is unaware of relevant policy limitations or exclusions, potentially complicating the process later on. Thus, reviewing the policy coverage is essential for a successful claims handling process.

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