Public Adjusters: Everything You Need to Know Before Hiring One for Your Claim

When disaster strikes—whether it’s a fire, flood, storm, or other property damage—the process of filing an insurance claim can be overwhelming. Homeowners and business owners often turn to public adjusters for help in navigating the complexities of the insurance claims process. But before hiring a public adjuster, it’s crucial to understand their role, benefits, and potential pitfalls.

What is a Public Adjuster?

A public adjuster is a licensed professional who represents policyholders in settling insurance claims. Unlike insurance company adjusters, who work for the insurer, public adjusters advocate for the policyholder. Their job is to assess the damage, review the insurance policy, and negotiate with the insurance company to maximize the settlement amount.

How Public Adjusters Differ from Insurance Adjusters

Insurance claims typically involve three types of adjusters:

• Company Adjusters: Employed by the insurance company to evaluate claims.
• Independent Adjusters: Hired by insurance companies on a contract basis to handle claims.
• Public Adjusters: Work exclusively for policyholders, ensuring they receive a fair settlement.

While insurance adjusters prioritize the interests of the insurer, public adjusters focus on getting the policyholder the highest possible payout.

When to Hire a Public Adjuster

Public adjusters can be beneficial in various situations, including:

• Large or Complex Claims: If your claim involves significant damage, a public adjuster can ensure that all losses are properly documented.
• Denied or Underpaid Claims: If your insurance company has denied your claim or offered a low settlement, a public adjuster can negotiate for a better payout.
• Lack of Time or Expertise: If you’re unfamiliar with the claims process or lack the time to handle it, a public adjuster can manage everything on your behalf.

Benefits of Hiring a Public Adjuster

1. Maximized Settlement: Public adjusters often secure higher payouts for policyholders than they would receive negotiating on their own.
2. Expert Knowledge: They understand insurance policies, coverage limits, and the claims process, ensuring nothing is overlooked.
3. Time-Saving: Handling a claim can be time-consuming; a public adjuster takes on this burden.
4. Claim Documentation: They thoroughly document damages, which strengthens the case against an insurance company’s low settlement offer.
5. Negotiation Skills: Experienced public adjusters know how to counter insurance company tactics that minimize payouts.

Risks and Considerations When Hiring a Public Adjuster

While public adjusters can be valuable allies, there are some risks to be aware of:

• Fees and Commissions: Public adjusters typically charge a percentage of the final settlement (usually 5-15%). Ensure you understand their fee structure before hiring.
• Scams and Fraud: Not all public adjusters are reputable. Research their credentials and check for state licensing.
• Conflicts of Interest: Some adjusters may push for unnecessary repairs or inflate claims, which could lead to disputes with the insurance company.
• Delays in Claim Processing: Some insurers may scrutinize claims more closely when a public adjuster is involved, potentially leading to longer settlement times.

How to Choose a Reputable Public Adjuster

If you decide to hire a public adjuster, follow these steps to ensure you choose a reliable professional:

1. Verify Licensing: Ensure they are licensed in your state. Most states require public adjusters to be licensed and regulated.
2. Check Reviews and References: Look for online reviews, testimonials, and ask for references from past clients.
3. Understand Fees: Confirm their fee structure and get everything in writing before signing a contract.
4. Ask About Experience: Choose an adjuster with experience handling claims similar to yours.
5. Avoid High-Pressure Sales Tactics: Be cautious of adjusters who push you to sign quickly or promise unrealistic settlements.
6. Consult Your Attorney: If unsure, consult a lawyer before hiring a public adjuster to ensure the contract is fair.

The Claims Process with a Public Adjuster

Here’s what to expect when working with a public adjuster:

1. Initial Consultation: The adjuster assesses your damage and reviews your insurance policy.
2. Damage Documentation: They gather evidence, including photos, repair estimates, and expert opinions.
3. Claim Submission: The adjuster submits the claim and negotiates with the insurance company.
4. Settlement Negotiation: They work to secure the highest possible payout.
5. Final Settlement: Once a settlement is reached, you receive the payout minus the adjuster’s fee.

Conclusion

Hiring a public adjuster can be a smart decision for policyholders dealing with complex or disputed insurance claims. They offer expertise, negotiation skills, and the ability to maximize settlements. However, it’s essential to choose a reputable professional, understand the associated costs, and weigh the benefits against potential risks. By doing your due diligence, you can ensure that you hire the right public adjuster to help you get the settlement you deserve.