Adjusters may need to hire a forensic accountant if they encounter the following issues:
- Minimal, lost or insufficient records
- Inventory reports lacking itemized details
- Inventory claims at retail selling price
- Inventory containing used, refurbished or consignment goods
- Damaged stock comingled with good stock
- Presence of property not owned by claimant
- Non-traditional methods of acquiring merchandise
- Multiple floods at the same location
When we’re retained to assist with flood insurance claims, we mobilize our professionals so they can:
- Perform price tests on sample items to determine original or replacement cost
- Conduct a roll-forward analysis of all stock transactions up to the dates of loss and of post-loss stock counts
- Perform cut-off tests at pre-loss and loss dates to determine stock received and dispersed
- Verify original purchase dates and replacement dates of business personal property (including stock)
- Cross-check current claims against previous claims
- Work in conjunction with inventory companies, salvage and other experts
- Perform site visits
- Verify ownership of business personal property
- Conduct test counts to verify reasonableness of stock levels
- Oversee, perform or supervise stock counts
For assistance with claims arising out of National Flood Insurance Program coverage, call on the forensic accountants at MDD.
