Loss assessor fees on a UK fire claim

The work behind a fire claim fee

Fire produces several layers of loss at once: structural damage, smoke and soot contamination, water damage from firefighting, destroyed contents, and the cost of living or trading elsewhere. The assessor's fee covers the work needed to identify and value each of those layers, then defend them in front of the insurer's loss adjuster.

In practice this includes reading the policy and schedule, visiting the site, commissioning or reviewing a schedule of reinstatement works, listing contents room by room, gathering proof of ownership, managing emergency contractors, attending meetings with the adjuster and negotiating the final settlement. On large losses the assessor also coordinates surveyors and, where the cause is disputed, a fire investigator.

Indicative fee bands for fire claims

No regulator or trade body publishes a binding fee scale for loss assessors in the UK. The table on this page is an indicative order of magnitude observed on the market, not an official tariff. Rates usually decrease as the claim grows, because surveying and negotiation effort does not rise in direct proportion to the sum at stake. Many firms quote a single headline rate, often somewhere in the 7.5% to 12% range for domestic fires, and reduce it for very large losses.

Indicative amounts, to be checked with each expert.

Percentage of what, exactly

The headline rate means little until you know the base. Most domestic agreements apply the percentage to the total settlement, including buildings, contents and alternative accommodation. Some exclude certain heads of claim, such as emergency accommodation already paid directly by the insurer. A few firms charge only on the amount gained above the insurer's initial offer, which aligns their pay with the value they add but needs a clearly documented starting figure.

• Total settlement: simplest, but the highest base
• Settlement excluding sums already paid before appointment
• Additional amount obtained above a written first offer
• Different rates for buildings and contents

Fixed fees, hourly rates and minimums

For a small kitchen fire, a fixed fee can be fairer than a percentage. Hourly or daily rates are more common on commercial fires where the client wants help on a specific task, such as challenging the adjuster's view of the cause. Many firms apply a minimum fee so that small claims remain viable for them. Ask for that figure in writing.

VAT is normally charged at the standard rate on top of the fee. Homeowners cannot recover it, so the real cost of a 10% fee is 12% of the settlement once VAT is added. Check also whether the assessor's fee includes surveyors, contents valuers or project management of the rebuild, or whether those are billed separately.

Will the insurer reimburse the assessor

Household buildings cover usually includes professional fees, but this generally means architects, surveyors and consulting engineers needed for reinstatement, not someone engaged to negotiate the claim against the insurer. In most cases a homeowner pays the loss assessor out of the settlement.

Commercial policies are different. Many contain a claims preparation costs clause that reimburses reasonable professional fees for preparing the claim, up to a limit shown in the schedule. Wordings vary, and some exclude fees for advocacy or negotiation. Read the clause with your broker before you appoint anyone, and note any requirement to obtain the insurer's consent.

Three fire scenarios and what they may cost

Small fire: a chip-pan fire damages a kitchen and leaves smoke throughout the ground floor, settled at £18,000. With a minimum fee of £1,500 or a 12% rate, the cost is around £1,500 to £2,200 plus VAT. Many owners handle such claims alone, and an assessor is worth it mainly if the insurer resists smoke cleaning or replacement.

Medium fire: an electrical fire in a semi-detached house, with the family rehoused for six months, settled at £140,000. At 8%, the fee would be £11,200 plus VAT. Large fire: a total loss of a warehouse with stock and machinery, settled at £1.8 million, where a negotiated rate of 3% gives £54,000 plus VAT, partly reclaimable for a VAT-registered business and possibly partly reimbursed under claims preparation cover. These figures are illustrations only.

Reading the engagement letter at the scene

Fire is the claim where some firms approach owners at the property within hours. A reputable assessor will give you time and will not object if you read the letter of engagement calmly. Check the rate, the base, the minimum, VAT, separate charges, what happens if you end the agreement, and whether there is a cooling-off period. If you signed at home or on site, consumer law may give you a cancellation right; ask the firm to confirm it in writing.

• Rate and base clearly stated
• Minimum fee and VAT in figures
• Included and excluded services
• Termination and cancellation terms
• Named handler and professional indemnity insurance

Choosing between firms

Compare at least two firms on the same claim value. Ask for references from previous fire clients, the experience of the handler with similar buildings, and how they work with your chosen builder. Be wary of promises of a specific settlement before any survey, or of firms that insist on using only their own contractors. The cheapest offer is not always the best if it leaves smoke damage or underinsurance arguments unchallenged.

A clear, written fee on a known base lets you judge whether an assessor is worth it on your fire claim. For the claims process itself, see the fire guide on expertdassure.com.