What is the first step an adjuster must take when evaluating a claim?

The first step an adjuster must take when evaluating a claim is to review the policy to understand coverage and conditions. This foundational step is critical because it allows the adjuster to determine what is included in the policy and any potential exclusions that might affect the claim's validity. Understanding the specifics of the coverage informs the adjuster about the scope of benefits the policyholder may be entitled to, as well as the obligations of both the insurer and the insured.

By having a clear grasp of the policy details, the adjuster is equipped to assess the claim accurately and determine whether it meets the necessary criteria for coverage. This understanding serves as a guide for subsequent actions, such as speaking with the claimant, gathering evidence, or deciding on further investigations that may need to take place. Engaging with the claimant or gathering evidence without first reviewing the policy could lead to misunderstandings regarding what is covered and could complicate the adjustment process.