Common Questions About Working With a Public Adjuster

Frequently Asked Questions

Here are answers to frequently asked questions about working with a public adjuster.

What are the pros and cons of working with a public adjuster?

If you are undecided about whether or not you should hire a public adjuster, here are some pros and cons worth considering.

PROS:

– Makes the claims process less stressful

Suffering damages to your property and personal belongings during a covered event can be frustrating and sometimes even traumatic.

And dealing with your insurer might further exacerbate an already unpleasant experience – it involves doing something you are probably not familiar with that takes you out of your comfort zone.

By working with a reputable, experienced public adjuster, you can save yourself a lot of headaches.

– Helps you fight a lowball offer

You do not have to accept the first settlement offer you receive from your insurance company. If you have received a bad settlement offer, a public adjuster can help to secure a better offer for you.

– Saves you time 

Managing a large or complex insurance claim might feel like a full-time job. Filing paperwork, attending meetings, and dealing with contractors are time-consuming and labor-intensive.

Hiring a public adjuster to manage the process can free up a lot of time!

– Cheaper than hiring an attorney

Homeowners often think hiring an attorney is the best solution when an insurance claim does not go according to plan. However, hiring an attorney is an expensive option!

Most attorneys charge a contingency fee of 33 to 40 percent of the settlement amount. It is significantly higher than what you can expect to pay for the services of a public adjuster.

– Negotiates on your behalf

Negotiating with insurance adjusters is no easy task. They typically know the ins and outs of insurance claims and have years of experience. You do not stand a chance to negotiate with an expert unless you are also an expert.

An experienced public adjuster deals with insurance companies or their adjusters daily. Your public adjuster is in a much stronger position to negotiate with an insurance adjuster than you are.

– Helps resolve claims faster

Working with an efficient public adjuster can speed up the claim settlement process – they know what to do and how to do it right the first time.  

– Likelihood of a higher settlement offer

One of the main advantages of using a public adjuster is the likelihood of a higher settlement offer. 

Public adjusters understand the fine print in your insurance policy. And they have the skills, knowledge, and experience to negotiate a fair settlement offer on your behalf.

– No upfront payment is required

Public adjusters do not require an upfront payment. They only have to be paid once you receive payment from your insurance company. If you do not get paid, they do not get paid.

CONS:

– Do not generally accept denied claims

Public adjusters seldom get involved if your insurance company rejects your claim, such as when your claim is not the result of a covered event.

– Do not generally accept small claims

Managing an insurance claim can take a lot of time and effort. It’s sometimes not viable for a public adjuster to commit their time and resources to manage a small, straightforward claim.

For example, if you are only claiming a couple of hundred dollars, they might not be able to add much value.

When should I hire a public adjuster?

As a rule of thumb, small and straightforward insurance claims are usually filed and managed by the homeowner. However, hiring a public adjuster might be in your best interests for large or complex water damage claims.

Here are four signs you might need to hire a public adjuster:

#1. Your claim requires extensive documentation

The bigger your claim, the more likely your insurer will require more information and documentation.

Your insurance provider understands your policy best because they wrote it. And they deal with insurance claims daily. It can be difficult when the people who know your policy best are looking out for their bottom line.

For example, like many homeowners, you might not have a complete inventory of your possessions. And as the saying goes, you don’t know what you have until it’s gone. Compiling a list of items from memory is extremely difficult.

Public adjusters know what documentation insurance companies need and can help you submit the correct documentation to support your claim.

#2. You are not sure if your insurance company will cover your claim

The goal of any reputable public adjuster is to ensure you receive the maximum settlement amount you are entitled to under your policy.

Public adjusters understand the fine print of homeowners insurance policies. And they can help you understand your policy by explaining the meaning of complex provisions, clauses, and legal terminology.

They can quickly determine the validity of your claim and act on your behalf to ensure your insurer does not blindside you into accepting a lowball settlement offer.

#3. You cannot devote sufficient time to managing your claim

Most homeowners do not have the time or expertise to manage large or complex insurance claims. And if you have a full-time job, you cannot drop everything to deal with your insurer, their insurance adjuster, and contractors.

In addition, depending on the damage to your home, you may need to relocate, take time off work, or even care for injured loved ones!

Hiring a public adjuster to manage your claim on your behalf frees up your time and gives you peace of mind knowing your claim is in expert hands.

#4. Your insurance provider is delaying your claim or providing incorrect evaluations

If you feel your insurance company is dragging its feet, not taking your claim seriously, or playing games by making lowball offers, it might be in your best interests to call a public adjuster.

An experienced public adjuster can determine and resolve the reasons why your insurance company is not giving you the service you deserve. And insurance companies often take public adjusters more seriously than homeowners since they know they cannot play games with a public adjuster.

Is a public adjuster the same as an independent adjuster?

The short answer is there are three main differences between public adjusters and independent adjusters, namely:

1. Homeowners can hire public adjusters, whereas insurance companies appoint independent adjusters.
2. A public adjuster looks after the best interests of the policyholder. Independent adjusters look after the best interests of the insurance company.
3. Public adjusters receive remuneration from the policyholder – typically a percentage of the settlement amount. Independent adjusters receive payment from the insurance company.

Here is a more detailed overview:

Insurance Adjuster

Many states use different terms to classify adjusters. It includes “Property & Casualty Adjuster,” “General Lines Adjuster,” and “All Lines Adjuster.” These are all insurance adjusters who work for or on behalf of insurance companies.

California Insurance Code (Cal. Ins. Code) Section 14021 reads, in part:

“An insurance adjuster within the meaning of this chapter is a person other than a private investigator as defined in Section 7521 of the Business and Professions Code who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or makes, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a policy of insurance on behalf of an insurer.”

To summarize it in plain English:

An insurance adjuster investigates an insurance claim to obtain the necessary information to adjust the claim for or on behalf of an insurance company.

Insurance adjusters typically fall into one of two categories, namely:

Company or “Staff” Adjuster

A company or staff adjuster is a full-time employee of an insurance company. Their job function is to investigate and adjust insurance claims for their employer. They act in the best interests of your insurer by helping to minimize their liability.

Independent Adjuster

The term independent adjuster is a bit of a misnomer or inaccurate description. Though the word “independent” would imply otherwise, insurers pay independent adjusters as their contracted representatives to investigate and adjust claims on their behalf.

An independent insurance adjuster can work on a contract basis for multiple insurance companies. Insurance companies typically hire them when:

• Their staff can’t handle the volume of claims they need to process.
• They need a highly specialized adjuster to manage a specific claim.
• They don’t have the staff or sufficient staff in certain areas.

Public Adjuster

Many people have never heard of public adjusters (often called private adjusters).

It’s often only when policyholders receive lowball settlement offers and suspect their insurance company is playing games that they discover they can hire a public adjuster to manage the claim on their behalf.

Public insurance adjusters are similar in many ways to company or independent insurance adjusters in that they also investigate and adjust insurance claims.

However, they work for the policyholder, not the insurance company. They act in the best interests of policyholders by helping to maximize settlement offers.

Isn’t it better to hire an attorney instead of a public adjuster?