The Psychology of a Loss

The handling of insurance property losses today is complex with many sciences and skills involved. However, there is one area of expertise that often receives little, if any, attention or training — understanding the feelings a customer experiences after a loss, and how that affects the way we deal with the customer. Responding the right way can often result in much less time and cost to insurers and contractors involved.

After a property loss, emotions may prompt reactions that, on the surface, may seem to be unreasonable or illogical. It would be prudent for all those involved in the insurance and repair industry to gain an understanding of these reactions. Understanding this process will help all those involved in the claims process to maintain a balance and to keep matters in perspective.

When property losses occur, the event is unplanned and certainly unwelcome. The impact on the property owner often manifests in a range of emotions. In fact, some of the same range of feelings that affect a bereaved individual may occur to some degree when a property loss occurs.

Sentimentality and the memories connected to various items often intensify the emotions that follow its loss, because its value to the owner was attached to something other than monetary value. Many items are irreplaceable in the eyes of the insured.

When surveying a loss, it may be easier to sympathize with an insured whose home has been ravaged by Hurricane Katrina, as compared to a typical seemingly minor basement flood. In both cases, to a greater or lesser degree, an emotional cycle is in play that is personal to the one experiencing it.

Emotions do not necessarily follow any fixed schedule or program. Shock, disbelief, grief, anger, feelings of guilt and a tendency to lay blame can come upon a homeowner. Whatever the cause, anger may manifest and can often be directed at those close to or involved in the loss. Along with these comes a feeling of lost control, as many decisions have to be made based on pre-established criteria and policy.

Such a turbulent state of mind in the client presents a challenge to those working on the front lines to settle the claim. Areas of repair or necessary replacement may not be clear until they are reviewed in light of the insurance policy. Further, restoration professionals and insurers face risks of liability. Thus, while there is desire to get work underway and to assist, there is a need to proceed with caution.

When many are running to the rescue, these professionals are sometimes viewed as heroes and the contractor especially may feel like the gallant rider on a white horse. Feeling they are being looked after makes most people feel a sense of relief. However, as unanticipated as the event itself, homeowners’ emotions may start to swing from feelings of relief to those of impatience and in some cases, anger. After all, the process can be very intrusive. Ones’ belongings, including cherished items, are being handled. The insured, whose emotions may be running quite high, may be prone to lash out, accuse and find fault with the process as a whole. As the days and weeks progress, frustration may turn to anger as anticipated results do not come quickly or limitations in the policy affect the anticipated outcome.

In view of the foregoing, what can professionals involved in the claims process do to fulfill their roles effectively without being caught up in this flood of emotions?

It can be boiled down four things: preparation, communication, respect and professionalism.

Preparation

Recognizing ahead of time that a property loss will trigger intense emotions means that we won’t be taken by surprise when a customer reacts emotionally. Examining ahead of time the common patterns of behaviour, and preparing tools for dealing with them, can prepare professionals prepared for most situations

• Expect emotional reactions. They will vary widely in character and intensity, but emotions are always a factor when a loss occurs.

• Expect a client’s emotions to change. In some cases, you may at the outset be thought of as a hero and soon find yourself accused of being a criminal. Don’t take it personally.

• Have a plan for how to handle such reactions. The following three groups of points should form a part of your plan of action.

Communication

• Good communication is a critical part of the claims process, and effective communication can do much to defuse the heightened emotions involved.

• Keep lines of communication open from the onset. Find out the best times and ways to communicate with the client. Encourage them to call with any questions. The need for information is usually greatest at the outset, but can be ongoing. Problems arise when long periods of time go by between communications, or when different people give different answers.

• Set clear and realistic expectations. Early in the process, explain how losses are handled and how this type of loss may affect the efforts involved and the outcome. This information is best if it is written and thus can be referred to after your initial conversation.

• Assign one “communicator”. Insurance companies are careful to assign one adjuster to communicate with the insured party when a loss occurs. Likewise for other professionals involved, such as a restoration company, it is best if one person assigned to the loss is the communicator. Many problems arise when the insured receives different messages and answers during a loss, which can trigger or aggravate emotional responses.

• Develop a communication policy for your staff to follow. Most difficulties arise in claims when the ones talking don’t know and the ones who know are not talking. A communication policy would define the process of communication and give staff at all levels clear direction on how to respond to enquiries and claim related questions.

• Listen carefully to the insured’s comments and note the things that seem to matter most to them. Listening is probably one of the most significant ways to demonstrate interest and help a client feel that you understand.

• The insurance company, restoration contractor and any other professionals involved must work as a team. Keep all those in the process informed as required, based on their involvement. Throughout the loss it is important to keep the lines of communication open and to jointly keep an eye on the ‘pulse’ of the insured.

• Most important, keep people focused on the outcome — when things may be back to their pre-loss state.

Respect

The evaluation and settlement of a claim process can be a very intrusive process for the insured. Respect the client’s feelings. Every client and every loss is different. Sometimes an extreme loss or complex case will be handled by the insured with comparative equanimity, while a seemingly minor loss can became complex and expensive because of emotional reactions. In every case, the emotions are justified in the minds of those involved.

Show respect when entering a devastated home — no matter how damaged, ask permission when opening doors or inspecting belongings.

• Take all the client’s concerns seriously. Even if a matter seems trivial or a concern unwarranted, to the customer it is valid, and so you should look into it. A common example is when a homeowner claims that there is an unusual smell. Odour is a brain-initiated reaction and is unique to an individual’s brain chemistry, so even if you don’t perceive a smell, it should be investigated. There are some very effective ways to isolate and discover odors that may be perceptible.

• Respect the other professionals working on the claim. If the customer voices complaints about another party, pass on the concern to the other party and don’t take sides.

Professionalism

Many perceives themselves to be professional, but it can be difficult to remain so when the clients emotions are running high.

• Keep a professional demeanor by focusing on the tasks more than on the people, and by keeping all involved focused on the outcome rather than the immediate effects.

• Don’t get too close to the client. It is natural to sympathize with someone who has suffered a loss. You are there to do a job — do it with sensitivity, not with sentimentality.

• Work as a team, and don’t take sides. An adjuster who quickly interprets service issues as evidence of a bad contractor or his people as untrained will often not experience good results with the insured. Likewise, a contractor should not comment on criticisms a client may voice about the insurance representative. The cost of taking sides quickly or overreacting can be enormous in terms of time money and emotional effort.

Asser Ghazouly has been in the cleaning restoration industry for over 30 years as an owner and partner of Spring Fresh Disaster Kleenup. He currently looks after business development and technical training.