Everything You Need to Know about Insurance Claims & Insurance Adjusters

There are 3 different types of insurance adjusters for insurance claims. Do you know which one is working for you?

Type 1 – Public Adjusters

Public Adjusters do not work for the insurance company. Individual policyholders hire public adjusters to assist in the preparation, presentation, and settlement of their claim. A Public Adjuster’s compensation is based on a percentage of the settlement that is finalized by the insurance company. To protect policyholders, the State of California Department of Insurance requires that public adjusters are licensed, bonded, and tested. Public Adjusters are the only adjusters who represent the policyholder’s interests.

Type 2 – Company Adjusters

Insurance companies employ Company Adjusters to represent their interests. The insurance company compensates the Company Adjusters. Consequently, Company Adjusters do not charge a fee to the policyholder. Moreover, the State of California Department of Insurance does not individually license or test Company Adjusters.

Type 3 – Independent Adjusters

Insurance companies hire Independent Adjusters to represent their interests. Independent Adjusters work on behalf of the insurance company and assist them in adjusting your claim. Although the insurance companies do not employ Independent Adjusters, they compensate the Independent Adjusters and should never charge the policyholder a fee for their services.

Insurance companies often assign multiple adjusters to a single claim, so it is important to know which adjuster is working in what capacity. Furthermore, Public Adjusters are the only adjusters that represent the policyholder’s interests.

If the insurance company is giving you a hard time and also refusing to cover your losses, you are likely to benefit from working with a public adjuster. Often, hiring a public adjuster can lead to higher settlements. Interested in learning more? Check out our article “When Should I Hire a Public Adjuster?“!

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