Why Use a Public Adjuster for an Insurance Claim?

A public adjuster is a licensed professional who works exclusively for the policyholder to help navigate the complexities of an insurance claim. They differ significantly from the adjusters employed by insurance companies, whose primary loyalty is to their employer’s financial interests. Engaging a public adjuster can help ensure that a claim is thoroughly documented, accurately valued, and fairly negotiated.

What a Public Adjuster Does

A public adjuster serves as an advocate for the policyholder throughout the insurance claims process. Their sole responsibility is to represent the policyholder’s interests. This independent representation helps balance the playing field during negotiations.

The core responsibilities of a public adjuster include a detailed assessment and documentation of all damages. They inspect the property, compile reports, and take photographs and videos to support the claim. This documentation is important, as the burden of proof for the loss rests with the policyholder.

Public adjusters play a significant role in interpreting complex insurance policies. They analyze coverage limits, exclusions, and endorsements to identify all potential benefits. This expertise helps ensure that no damage or potential coverage is overlooked.

Beyond documentation and policy interpretation, public adjusters prepare estimates. They then engage in direct negotiations with the insurance company’s adjusters to secure a fair settlement. Their negotiation skills and knowledge of industry practices aim to maximize the payout for the policyholder.

When to Consider Hiring a Public Adjuster

Hiring a public adjuster becomes valuable in specific scenarios where the insurance claim process can be overwhelming or contentious. When dealing with large or complex claims, such as those resulting from major fires, hurricanes, or extensive property damage, a public adjuster’s expertise can be helpful. These events often involve detailed damage assessments and significant financial implications that can be difficult for a policyholder to manage independently.

Consider a public adjuster when a claim has been denied or undervalued by the insurance company. If the initial settlement offer does not cover the repair or replacement costs, or if the policyholder believes the insurer is minimizing the damage, a public adjuster can re-evaluate the claim and advocate for a fair settlement. They can challenge the insurer’s valuation and present additional evidence to support a higher payout.

Business interruption claims benefit from a public adjuster’s specialized knowledge. These claims involve calculating lost income and additional expenses incurred due to a business shutdown following a covered loss. Public adjusters analyze financial history, project future earnings, and identify all recoverable losses to ensure proper compensation.

Policyholders overwhelmed by the claims process or lacking time and expertise also find public adjusters beneficial. The process can be time-consuming, involving paperwork, communication, and negotiation. A public adjuster can handle these burdens, allowing the policyholder to focus on recovery and rebuilding. Their involvement can expedite the claim process and reduce stress.

Working with a Public Adjuster

Engaging a public adjuster starts with a consultation where the adjuster reviews the specifics of the loss and discusses how they can assist. If the policyholder decides to proceed, a formal engagement contract is signed. This document outlines the scope of services, the fee structure, and other terms of the agreement. Policyholders should understand all terms, including how the public adjuster’s payment will impact the final funds available for repairs.

Once retained, the public adjuster manages the claim. They conduct their own independent assessment of the damage, which involves an inspection of the property and documentation of losses. This documentation includes photographs, videos, and inventories of damaged items. The adjuster reviews the policyholder’s insurance policy to identify coverages and policy provisions.

The public adjuster then prepares an estimate of the claim value. This estimate is based on their assessment and includes costs for repair, replacement, and additional expenses. With this package, they formally present the claim to the insurance company. They handle all communications with the insurer, responding to inquiries and providing requested documentation.

The negotiation phase is where the public adjuster advocates for the policyholder. They leverage their expertise and the documented evidence to negotiate a fair settlement with the insurance company’s adjusters. This involves countering low offers and ensuring that all covered damages are accounted for. The public adjuster continues to work on the claim until a final settlement is reached that aligns with the policyholder’s best interests.

Public Adjuster Compensation

Public adjusters charge for their services based on a contingency fee arrangement. Their payment is a percentage of the final settlement amount received by the policyholder. This fee structure aligns the public adjuster’s interests with those of the policyholder, as they are motivated to achieve the highest settlement.

The percentage charged ranges from 5% to 15% of the total claim payout. For very large claims, the percentage might be lower, while smaller or more complex claims could see a higher percentage within this range. These fees are deducted from the settlement amount, not in addition to the insurance company’s payment.

Payment to the public adjuster is due only after the policyholder accepts the final settlement from the insurance company. This ensures that the policyholder does not pay out-of-pocket until funds are received. While contingency fees are common, some public adjusters may offer alternative arrangements, such as hourly rates or flat fees. These are less frequent than the contingency model.