“Many people short themselves and don't know it,” said Carlos V.Freyre, managing director of MySmartClaims.com, referring to thefact that homeowners may accept settlement amounts that areinappropriate because of lack of resources.

“Traditionally, homeowners have been somewhat limited in theiroptions in negotiating claims,” Freyre added. “They could eitheraccept the carrier's estimate or hire a third party, such as apublic adjuster, which typically charges between 10 and 40 percentof the recovered amount.” However, Florida-based MySmartClaims.comis offering their estimation tool to help homeowners determine ifthe insurer's price is right, without seeking outside assistance.The goal? To combat perceived low-ball offers on claims.

The tool does not require special training to employsuccessfully. In fact, the average procedure takes about one hour.Each homeowner need only have Internet access and the informationprovided by the insurance company to answer a set of questions. Theservice then analyzes the estimate; calculates the cost ofrestoring the property, which is based on industry-standardexpenses for time and materials categorized by zip code anywhere inthe U.S; and provides forms that consumers can then use to recovermore money.

According to the company, this service is especially usefulfollowing damage claims for events such as kitchen fires, brokenpipes, or strong winds, and for those reporting losses afterhurricanes and other catastrophic events.

But what do some independent adjusters think about it? James F.Lakes, president/CEO, MWD Catastrophe Services, Inc., is quick tomention that most insurers don't require proof-of-loss statementsanyway. Lakes also pointed out that policyholders already haveseveral options when disputing insurer settlement amounts,including contacting the insurance commission or opting for theappraisal process.

Kevin Hromas, an executive general adjuster from Houston, Texas,relays the concern that the blanket approach afforded by thesoftware may not be the right option for everyone, depending onpolicy coverage limits. Both Hromas and Lakes mentioned thesignificant margin for human error, as homeowners would beinputting materials and measurements instead of a certifiedprofessional.

There is a fee associated with the service. However,MySmartClaims.com guarantees that users will recover more than thecost of its service or the fee is refunded. Even though the fee forthe service is said to be less than the cost of contracting apublic adjuster, insureds may not readily see the value inabsorbing the cost, said Doug Jackson, president, Southwest ClaimsService, Inc.

“Sure, insureds might consider the software, but I doubt thatmost would spend the money, especially after just suffering aloss,” Jackson said. “Although I could see a public adjuster orplaintiff's attorney trying to use something like this to bolster acase that the insured was being underpaid. It would be a hard sell,given the complexities and unique character of each claim.

“Just like estimating programs, software applications are simplya tool to be used to develop a fair adjustment and should not to beconsidered the absolute last word as to the amount of the loss,” heconcluded.