The scope is an essential element of any property loss adjustment. In general terms, it is the adjuster's itemization of the elements of damage that establishes the extent of the insured's loss. In building losses, the scope is an itemized description of the damage to each building component. In a contents loss, the scope is a listing of all damaged personal property, describing the extent of damage, and providing a basis to determine each item's value. Some property adjusters use other terms to describe the scope, such as take off, survey, specifications, or field notes. Regardless of the name, the scope is the first and most critical step in preparing an estimate.

On smaller losses, prepare the scope and use it to write the estimate at the loss. On larger losses, it may not be practical to try to finish the estimate at the scene, so take the completed scope to your office and complete the estimate there.

The scope must contain sufficient detail for each damaged component to later calculate the costs involved. For each damaged building component, the scope must describe three things. They are the degree of damage, usually stated as a method of repair, the quality of the materials and workmanship, and the raw counts or measurements that are needed to calculate quantities. Let's look more closely at how this is stated in the scope.

The scope is a separate and distinct step in preparing the repair estimate. The scope differs from the finished estimate in two ways.

First, the scope doesn't necessarily list any prices, although prices can be used to describe quality.

Second, the scope doesn't list the calculated quantities. It is just the raw counts and measurements you will need to calculate quantities when you write your estimate. In

other words, you don't need a calculator to prepare a scope. Calculate the quantities as you extend and price the scope into a finished estimate.

It is important to follow a set sequence in inspecting the loss and preparing your scope. The sequence suggested here works well but can be modified to fit the situation. The key is following the same sequence on each loss so that nothing is overlooked. The sequence suggested here is suitable for a larger fire loss. On smaller losses, some of the steps can be combined or eliminated or common sense will often dictate a different sequence.

Here is the suggested sequence for a first inspection.

Step one is the initial survey. Walk around the exterior of the building to get an idea of the type of construction, areas of damage and the condition of the building before the fire. Look for safe ways to enter the building and evidence of hazards inside.

As a rule of thumb, always enter a severely damaged building below the lowest damaged floor so you can check the soundness of the floors above. Examine the point of origin to see if you need expert assistance in establishing the cause. When you have finished this initial survey, you may find that scoping the building damage may momentarily take a back seat to more immediate coverage problems. Set your priorities, but plan on finishing your scope as a part of the initial inspection.

Step two is to prepare a diagram and sketches. Prepare a perimeter diagram first, and then add the interior walls in the area of damage. Starting with the building perimeter helps insure that it all fits, and comes in handy if you are going to calculate the value of the entire structure. Try to make the most of your measurements now so you won't be distracted when it's time to prepare your detailed scope. Make sketches showing measurements you will need on your estimate such as trusses, cabinets, or gable ends.

Step three is to scope the damage. A fixed sequence of inspection steps ensures that nothing is missed. In our sequence, each of the steps represents a separate tour of the damaged area. Try to scope the loss with the insured or the insured's choice of contractor. Remember that the purpose for preparing the immediate, detailed scope is to establish and agree on the extent of damage. On smaller losses, the insured may want to discuss every detail. On larger losses, try to reach agreement on anything that may become an issue. If the insured's contractor is present, agree on the major costs, as well as each item of repair. Consider the use of experts to resolve uncertainties or legitimate differences of opinion.

Begin your scope by looking at major structural components. There are a couple of reasons for beginning with the structural components. First, they are almost impossible to scope on a room-by-room basis. Second, damage to a structural component may require tear-out of another undamaged component.

Exterior items are next because they cannot be seen from the inside and they span room boundaries. Walk around the complete exterior before moving inside.

Then move inside and inspect damage room by room, noting any architectural items, all finishes and components of building systems such as ducts, pipes and wiring, that are completely contained within the room. Inspect floors, walls, ceilings, trim, doors and windows. Check all fixtures, appliances and cabinetry.

Once that is done, scope the portions of the plumbing electrical, heating and air conditioning systems that cross room boundaries.

Finally, evaluate general considerations such as debris removal, permits, and access items such as scaffolding or other equipment rental.

In step four, you will need to consider coverage. How will the policy affect the covered loss? Consider possible code upgrades, damage from excluded causes, value requirements such as coinsurance or replacement cost conditions, property that is excluded from or limited in coverage, and so forth. Make sure you have enough information about the building to calculate its value before the loss.

Step five is the photographic documentation of the risk and the loss. Take digital photographs of the things you feel will be important to the adjustment. There are a couple of reasons for taking your pictures last. First, you don't know what's important until you have been through the whole loss. Second, it gives you an opportunity to walk through the loss one last time to make sure your scope is complete and you will not have to return for additional missed items.

The detailed scope of damage is essential to gain control of any building loss, regardless of whether the estimate will be written by the adjuster or submitted to contractors for bids. And, be sure to take exterior photos of the structure, particularly a curb view to identify the building.