Anyone whose home is damaged in a disaster will be grateful to have homeowners insurance. However, filing a claim may be a time-consuming process that requires hours of meticulous paperwork; if you leave anything out, you may receive a reduced settlement. This is where public insurance adjusters can help.
What is a public adjuster?
A public adjuster is an insurance expert who can handle your claim for you. Insurance company adjusters represent the insurer’s interests, whereas public adjusters represent you. Their goal is to ensure that you receive every dollar that you are entitled to.
What does a public adjuster do?
A public adjuster will inspect and assess the damage to your house, determining how much coverage you are entitled to under your policy. They will also estimate the cost of repairing the damage and document the items you have lost. An adjuster can contact the insurance company on your behalf to arrange a settlement.
Public adjusters typically work on large, complex cases. For example, recovering from a hurricane can be particularly difficult because it frequently requires filing claims under multiple policies. If the wind blasted your roof off while floodwaters rose, you would file both a homeowners or windstorm insurance claim and a flood insurance claim.
You may also encounter hard questions like this: How much of the water damage was caused by rain leaking through the torn-up roof, and how much by flooding? The water damage to the roof would be covered under a homeowners or windstorm policy. Flood damage would be covered under a flood insurance policy.
A public adjuster can assist you in determining the answers and maximizing the value of each available policy.
Pros and cons of hiring a public adjuster
Not every claim requires the assistance of a public adjuster. Here are some advantages and disadvantages to consider.
Pros
They could be able to get you a larger settlement. The primary advantage of engaging a public adjuster is having an experienced professional negotiate for the highest potential claims payout. They can assist you document everything you’ve lost and identify potential harm that the insurance company’s adjuster may have overlooked.
They can save you time. Filing a substantial insurance claim needs a significant amount of time and effort, including filling out documents and contacting the insurer. If you already have difficult full-time work, are busy caring for children, or simply do not want to deal with the trouble, employing a public adjuster may be well worth the investment.
They can help you navigate the claims procedure. Insurance policies contain a lot of legalese and nitty-gritty information that the average individual may find difficult to understand. An expert public adjuster can assist you understand your coverage and the claims process.
They can help you dispute a settlement. If you first filed your own claim but are dissatisfied with your insurer’s settlement offer, you can hire a public adjuster to analyze the case and negotiate a better payout.
Cons
They are not acceptable for all claims. For modest, easy claims, you may be better off filing them yourself and saving the adjuster’s charge. (Some adjusters refuse to work on some claims because the potential return is too low.)
Your policy may limit your payout. The greatest public adjusters are knowledgeable and skilled at their jobs, but they are not miracle workers. A public adjuster cannot recover more money from the insurer than your policy allows.
Assume your home is destroyed by fire, and all of your valuables are lost. If the cost of replacing everything is $200,000 but your personal property limit is at $150,000, a public adjuster will most likely be unable to obtain the additional $50,000 in coverage.
Their fee will reduce your payout. Public adjusters typically charge anywhere between 5% and 20% of the overall settlement. However, in some situations, you will be charged a set or hourly amount. Some states cap the rates, and they may be negotiable — but you must pay for the adjuster’s time and skills.
They’re not available in every state. In some locations of the United States, public adjusters cannot assist with home insurance claims. For example, public adjusters in Kansas can only work on commercial claims, whereas public adjusters are not permitted in Arkansas.
They are not all legitimate. Disasters bring forth scammers: unqualified individuals who pose as public adjusters and take advantage of vulnerable people. To avoid a situation like this, follow the advice below.
How to find a good public adjuster
Not all public adjusters are equally competent and experienced, so do your research before hiring one. Follow these tips:
- Get referrals. You can find adjusters in your area by contacting the National Association of Public Insurance Adjusters.
- Determine whether the adjuster is licensed in your state. Many state insurance departments, which oversee public insurance adjusters, allow you to verify licenses online. (Note that public adjusters are not licensed in all states, including Alaska and Alabama.)
- Determine whether any complaints have been submitted with the Better Business Bureau.
- Request references and chat with at least three, if possible.
- Before engaging an adjuster, make sure you read the contract and understand the fees.
- Avoid anyone who arrives at your door unexpectedly, demands an advance money, or encourages you to sign a contract.
