Expertly managing large property loss claims

This blog is the first installment in a series about managing large property loss claims. In part one, we provide a high-level overview of what it takes to manage these claims effectively. Stay tuned for the second blog focused on asking the right questions.

2024 was one of the most destructive years to date for U.S. catastrophes. Fueled by record-breaking temperatures, the country saw more than double the average number of extreme weather events, with disasters like Hurricanes Helene and Milton, flooding across Texas and the Missouri Valley, and tornado outbreaks in the Midwest and Great Plains causing an estimated $182.7 billion in property damage.

As the 2025 catastrophe season unfolds, insurers are once again bracing for a surge in large property loss claims. With experts predicting another turbulent season and potential damage up to $200 billion, insurers must use a strategic, well-coordinated approach to manage these claims effectively and help insureds recover.

Ask the right questions

Every large property loss presents unique challenges and requires a different solution. Whether you’re managing an assessment or full-scale restoration, asking yourself the right questions at the start can help avoid delays, control costs and keep the project on track. Think about any special concerns or circumstances with the project. Are there potential issues you can anticipate and plan for upfront?

When managing an assessment, consider what inspections, documentation or testing may be needed to support an accurate valuation. Will you need a specialist to help you confirm the cause of damage or estimate any repairs?

For restoration projects, think about major cost drivers like materials, labor and disposal. How will these shape your project’s budget, timeline and resources? Do you have the expertise to manage repairs in-house, or will you need to engage an outside expert? Knowing these details early on will ensure your project is set up for success.

Start forming your team

Now that you understand your project’s scope, it’s time to start forming your team. Depending on the project, this may include an independent adjuster, certified specialist(s) and legal expert.

Think of the independent adjuster as your project’s quarterback. In addition to assessing damage and determining liability, they set priorities, establish boundaries and assign roles and responsibilities to others involved in the project. They’re also the main point of contact for the insured throughout the claims process.

Depending on the type of property damage and scope of the project, you may need to engage certified specialists like mitigation consultants, industrial hygienists, structural engineers, building consultants and more. These experts should be brought in early to minimize business interruption for the insured and get their property back on track as soon as possible.

In some cases, a legal expert may be a necessary addition to your team. If you need help understanding complex policy language, navigating a claim dispute or evaluating third party liability, working with a legal expert can help you stay compliant, clarify your obligations and ensure you only pay for what you’re responsible for.

Communicate effectively

Once your team is in place, clear communication becomes the glue that holds the project together. Without it, even the most qualified teams can miss the mark, resulting in slower turnaround times and higher claim costs.

Start by clearly communicating the insured’s concerns and priorities to everyone involved. This information should shape your team’s response from day one. From there, clearly define the scope of work, map out the timeline and outline the critical path response for your team – what needs to happen first, which actions depend on one another and who owns each step of the process.

Above all, it’s important to stay connected. Consistently check in with your team to ensure everything is running smoothly and on budget, and remember to document any updates or key decisions made to keep everybody aligned and accountable.

Final thoughts

Effectively managing large property loss claims requires thoughtful planning, the right experts and strong communication from start to finish. With a strategic, well-coordinated approach, your team will move faster and smarter this catastrophe season to help insureds recover and keep moving forward.

At Sedgwick, we have more experts than anyone – ready to respond anytime and anywhere – to every type of property loss. Whether you need help with everyday residential and commercial claims or the most complex and catastrophic losses, our experts are here to manage the process and deliver industry-leading outcomes. Learn more about our property claims management capabilities here.

Stay tuned for the second blog in this series, where we’ll explore key questions to ask when managing large property loss claims.