Mastering the DICE Method: A Game-Changing Tool for Public Adjusters
As a public adjuster, you are helping policyholders get the most out of their insurance claims.
This week’s blog post is brought to you by Black Diamond Housing Services, The Farber Law Firm, and Noble Tax Strategies.
One tool that can help you maximize the claim payout is the DICE method.
DICE stands for Declarations page, Insuring agreement, Conditions, and Exclusions, and it’s a method for analyzing insurance policies to gather a fast understanding of the policy and its provisions.
In this blog post, we’ll dive into the DICE method and show how it can help you optimize your claim process.
More specifically, from this blog post, you can:
👉 Discover how the DICE method can help you quickly determine whether a claim is worth pursuing.
👉 Learn tips and strategies for interpreting each section of an insurance policy and spotting potential issues that could impact your client’s claim.
👉 Gain a deeper understanding of the nuances of insurance policies, so you can provide more value to your clients and help them achieve the best possible outcome for their claims.
So, whether you’re new to the DICE method or want a refresher, keep reading to learn how it can make your life as a public adjuster easier and more productive.
Also, take a look at our YouTube video on the same topic if you prefer a visual guide.
Declarations Page: Uncovering Key Policy Information for Public Adjusters
The declarations page is one of the most important sections of an insurance policy for both homeowners and public adjusters.
It’s the first page you’ll see when you open the policy, and it contains critical information about the policyholder, the property or person being insured, and the coverage limits.
As a public adjuster, understanding the declarations page is crucial because it provides the foundation for the rest of the policy. Here are a few key things to look for:
Ensure the name and contact information for the policyholder are accurate and up to date. If you need to contact them during the claims process, you’ll need to know how to reach them.
Double-check that the property information on the declarations page matches the property you’re assessing. This includes the address, type of property, and any other details specific to the property.
Review the coverage limits on the declarations page to ensure they align with the client’s needs. If the limits are too low, it could leave the policyholder vulnerable in the event of a significant loss.
By paying close attention to the declarations page, you can avoid potential issues down the line and ensure that your clients have the coverage they need when they need it.
Insuring Agreement: Understanding Coverage
The insuring agreement is the heart of an insurance policy as it outlines the scope of coverage the policy provides.
This section specifies what risks and types of losses are covered, and the amount of coverage provided.
Understanding the insuring agreement is crucial for public adjusters as it allows them to determine what is covered, and advise their clients accordingly.
It’s important to note that the language used in the insuring agreement can be technical and legalistic, making it difficult for policyholders to understand.
This is also why public adjusters should be well-versed in the language and nuances of insurance policies and can help their clients interpret the insuring agreement to determine the losses the policy covers.
For example, a common policy type is the named peril policy which covers only those risks that are explicitly named in the policy.
While an open peril policy covers all risks except those that are specifically excluded.
A public adjuster can use the insuring agreement to determine the coverage limits of a policy and advise their clients on the type and amount of coverage they need.
For example, if a policy has a limit of $100,000 for property damage, but the actual cost of repairs is $150,000, the public adjuster can help their client negotiate with the insurance company to ensure they receive the coverage they are entitled to.
Conditions: How Can Public Adjusters Navigate the Fine Print
Conditions in an insurance policy are essentially the terms and requirements that must be met for the policy to be valid.
These can include anything from specific actions that the homeowner should take in the event of a loss, to requirements for notifying the insurance company, to limits on how much the company will pay out for certain types of damages.
Public adjusters should pay close attention to the conditions outlined in a policy because failure to meet these requirements can result in a denied claim.
For example, if a policy requires the insured to notify the insurance company within a certain time frame after a loss occurs, and this requirement isn’t met, the claim may be denied even if the damage is otherwise covered by the policy.
Many different types of conditions can be included in an insurance policy. Some common ones include:
Notice of loss requirements:
This outlines how and when the insured must notify the insurance company of a loss.
Proof of loss requirements:
What documentation or evidence must be provided to the insurance company to support a claim?
Duties after a loss:
Duties after a loss are the specific actions policyholders have to take following a loss.
The most prominent in this section are the mitigation requirements.
You should educate your clients on the importance of mitigation because the insurance company could easily deny your claim if you cannot show how your client mitigated the damages.
By understanding what conditions are and how they can impact a claim, you can help your clients navigate the often complex world of insurance claims and ensure they receive the compensation they are entitled to.
Exclusions: Knowing What's Not Covered
Exclusions are essential to an insurance policy because they tell you what is not covered. These are the situations or losses that the policy will not pay for.
It is vital to understand exclusions as they can limit policy coverage and help you manage your client’s expectations.
And also manage your expectation about your provision.
Common exclusions include intentional acts, war, nuclear hazards, and fraud.
As a public adjuster, understanding exclusions is crucial to your work. It allows you to manage your client’s expectations, identify gaps in coverage, and negotiate with the insurance company effectively.
If you are unaware of the exclusions, you may miss important details and fail to obtain a fair settlement for your client.
One of the most common types of exclusion is intentional acts.
This means that the policy will not cover damages caused by a policyholder’s intentional or criminal actions.
Understanding the exclusions in an insurance policy is critical to becoming a successful public adjuster.
By identifying what’s not covered, you can help your clients manage their expectations and avoid disputes with the insurance company.
As a public adjuster, understanding the DICE method is crucial for assessing the value of an insurance claim.
By breaking down the components of an insurance policy, you can quickly determine whether it’s worth pursuing a claim for your client.
👉 The Declarations page outlines information about the policyholder and their coverage.
👉 The Insuring Agreement defines the scope of coverage and what the policy includes.
👉 The Conditions section provides details about specific requirements that policyholders must meet to ensure their coverage remains valid.
👉 Finally, the Exclusions section identifies what is not covered by the policy.
By mastering each of these sections and how they fit together, you can help your clients navigate the claims process and ensure they receive the maximum payout they are entitled to.
So, next time you’re handling an insurance claim, be sure to keep the DICE method in mind.
It can be the key to your success as a public adjuster and provide your clients with the peace of mind they need during a difficult time.
It’s time to take full control of your claims. Of your business. Of your life.
A community can help you get there faster. It can offer support during these tough times. Inspiration. Guidance.
Together, we can get you to where you want to be.
What are you waiting for?