We received a call from an independent adjuster for an inner-city home goods store. It was floor to ceiling of smoke-damaged bed sheets and linens, and Sentry staff quickly evaluated the loss at the retail values and backed into cost value through invoice review.
We were able to determine the actual net cost of the product with shipping to the store. When we compared the Sentry figures to the claimed figures, the adjuster was able to settle the claim below the original estimate.
Here is how we did it:
First we counted all the stock at the listed retail and arrived at a gross retail value and total piece count.
Second, we gathered numerous invoices from the insured, and we cross-referenced 50 samples of exact product matches through style number reference or brand and style name. We used pictures to back up our findings.
Third, we keyed in the sample findings (Style number, Quantity, Retail, Cost, Shipping Cost) and then calculated both a weighted and unweighted percentage. We removed the highest and lowest 2 sampled percentages to reduce error.
Fourth, we sent our reports and the adjuster and insured agreed to our figures.
Finally, we salvaged the lot, basically broom cleaned the store, at no cost to the carrier, and provided a positive salvage recovery payment after all expense. A true win-win!