Water losses may result from failures of appliances such as dishwashers and washing machines. The result may be damages of as little as $1,000 or as great as $40-50,000 or greater. One easy way to analyze the cause of the loss is to have the insured call the manufacturer’s authorized repair facility. For example, GE has service reps in most cities. If the insured calls a service rep to repair the washing machine, the GE repairman will travel to the scene and for a modest charge, analyze the cause of the loss (or what repairs are necessary) and give the assured an estimate. If it is a failed switch on the fill cycle, for example, the repairman will remove and replace the switch, and give the damaged switch to the insured. The insured can then send the part to your subrogation unit or field adjuster and you have saved the cost of hiring an expert to analyze the problem.

A similar result will occur with dishwashers, refrigerator icemakers, and
the like.

This procedure will allow the subro unit representatives to settle many of
these smaller amount cases themselves.

Also, on these smaller losses, you have saved the cost of hiring an expert, which is probably not economic in view of the size of the loss.

Be sure the insured knows that you will cover the cost of the service visit
and replacement of the part, which is generally not more than $200.00.
You would pay at least that much to an expert witness to perform exactly
the same function, and generally pay much more in fees. Some carriers
have coded this as a witness fee or an expert witness fee, notwithstanding that the insured has performed the function. The insured ends up with a repaired appliance, you end up with an analysis of the cause of the loss as well as the damaged part, and perhaps are able to settle the case. It is a win-win! (21327)