Unfortunate events happen. Water damage from an overflowing toilet or storm damage to your home.

Both will make you want to call your agent. But WAIT! How do YOU know the amount you should be paid.

You know the insurance company has adjusters. However, have you heard of a public adjuster that works for you and represents you when you file a claim with your insurance company?

The Claims Process

A pipe bursts in your bathroom while you are not home—the bathroom floods with water. Unfortunately, the bathroom is on the upper floor of your home.

Water begins coming through the ceiling to your kitchen and landing on your new hardwood flooring. The burst pipe is causing significant property damage, and you decide to file an insurance claim.

To file a claim, you call your insurance company and report the incident. They send out their adjuster to survey the damages and come up with the cost estimates.

Mrs. Yolanda Thomas, a homemaker in Edison, NJ and a resident for 30 years was given money from her insurance company based on the inspection done by her Insurance Company’s Adjuster.

How does she know that she has been paid fairly for the full loss of her claim?

Difference between a Public Adjuster and an Insurance Adjuster

So, what is the difference between an insurance company adjuster and a public adjuster?

The insurance adjuster works for the insurance company. He works on their behalf to make sure the insurance company pays out the minimum it has to because the insurance company is a business and will focus on its own bottom line.

Insurance companies typically do three things regarding insurance claims:

  1. Deny the claim
  2. Delay paying the claim
  3. Minimize the payout amount

The public adjuster works for the homeowner and focuses on your bottom line to make sure you are fully paid for the entire loss and are paid on time.

Both do the same tasks of evaluating and assessing the damage. Both will write up proposals for repairs and their costs. The key difference is who employs them to do that task.

Let us take a closer look at the pros and cons of both kinds of adjusters.

Insurance Adjuster

The insurance company employs an adjuster to go to homes and survey damage. They are typically very knowledgeable about the trades of building or repairing a house. Often, they have a contractor’s license or who have worked in the field in the past.

They need to be highly knowledgeable about home construction as they evaluate damages and propose what it will cost to make the necessary repairs.

Pros of the Insurance Companies Adjuster

The insurance adjuster’s big bonus is that he or she comes at no additional cost to you as the homeowner.

Cons of the Insurance Companies Adjuster

The work they do is on behalf of the insurance company, not the homeowner.

John Perkins, a 53-year-old teacher from Neptune, NJ, had a loss that caused extensive damage. His insurer wanted to save the Insurance Company some money.

Ultimately, the insurance adjuster answers to the Insurance Company and needs to satisfy them.

Public Adjuster

Many homeowners do not even know about public adjusters. They assume the work done by the insurance companies adjuster is done on their behalf.

A Public Adjuster is employed by the homeowner. If you hire a public adjuster, the sooner in the claim process, the better. It is best if they can take over to speak on your behalf and work with the insurance adjuster right from the onset of the claim.

You might be wondering how to find a reputable public adjuster. Not all of them have good reputations and can have the reputation of being “ambulance chasers” looking for a disaster to make some money from. If you want to hire a public adjuster, start by looking at their credentials.

  • How are they skilled to assess damages?
  • What experience do they have in working alongside the insurance company towards a settlement?
  • How are their communication skills to work with all parties involved to get a settlement?

You might also look to see if they are members of the National Association of Public Insurance Adjusters. The NAPAI promotes standards for public adjusters.

Pros of a Public Adjuster

Knowledge and Professional Standards

Most states have strict standards for public adjusters. They cannot just decide this is a job they want to make money. The state requires careful training and knowledge to be licensed as a public adjuster. Often public adjusters are members of their professional organization, which requires certain skill standards.
Public adjusters also must be:

  • Bonded
  • Fingerprinted
  • Pass a background check

You should also expect them to know the ins and out of insurance claims for home and business claims. They should also have some negotiation skills, as they will be working closely with the insurance company adjuster to reach a mutually agreed-upon settlement.

Facing a catastrophic loss can involve some real stressors. You are faced with damage, loss, and future repairs. There can also be an emotional toll on losing things in your home or business.

For many, hiring a public adjuster means they have someone to do the thinking and negotiating on their behalf. The public adjuster becomes your advocate, acting on your behalf.

This is especially important if you have experienced a huge loss like a home fire. It will be hard for you to think about all the things that were once part of your home and will need replacing. That becomes the task of the public adjuster to guide you through the process.

Identification of all the associated damage

If you have a big claim, there could be things that need fixing you cannot see on the surface. Because of their experience and determination to find every possible thing, the public adjuster can help to make sure nothing is missed in the claim and claim settlement.

For example, if you had water damage on your wood floors from the upper-level bathroom. It might seem obvious that wood floors need to be replaced. However, the water may have run down the inside of walls where mold could form or drywall damage could occur. This could affect how secure cabinets are on the walls.

More Claim Settlement Money

On average a public adjuster lands larger settlement claims for their clients. As a homeowner, you might not feel it is your place or even confident to go back to the insurance adjuster and negotiate with them about the claim.

Certainly, you might not even recognize the possibility that something has been missed, so you do not know to ask for more. Because of their experience, a public adjuster does know to ask. They will then negotiate on your behalf with the insurance company adjuster.

Cons of Hiring a Public Adjuster

Paying the Public Adjuster

Public Adjusters work on contingency and are paid from the Insurance Companies settlement amount. The amount varies from area to area across the country. It also varies depending on the size of the claim.

Top 5 Questions about Working with a Public Adjuster

1. When should I hire a public adjuster?

The claims and repair process can be complicated so it makes sense to hire a Public Adjuster early in the process to avoid being delayed payment or denied altogether or underpaid for the full amount to cover all the damage.

Your public adjuster will help you with every part of the claim. Your public adjuster will assess the damage, determine a cost estimate, and even negotiate with your insurance company on your behalf. It is your insurance adjuster’s goal to maximize your claim

2. How is the Public Adjuster Paid

Your public adjuster is paid on contingency. Instead of paying upfront, you will pay a percentage of the settlement after an agreement is reached. After you accept your insurance company’s final payment offer, your adjuster will collect a pre-arranged amount.

3. Can my insurance company cancel my policy or raise my rates?

No, your insurance company can only cancel your policy for non-payment of the premium. Raising your rate can only happen during the policy renewal and can only be within amounts allowed by law.

4. Should I hire a public adjuster before I contact my insurance company?

Contact your Public Adjuster first to make certain that you present your loss accurately when you call your Insurance Carrier. Using inaccurate wording can hinder your ability to move the claim process forward. A typical mistake is to call your Insurance Company and describe a toilet overflow as a “Flood” this is inaccurate and would cause the claim to be denied because homeowner’s policies do not cover flood damage.

5. Why should I hire a public adjuster instead of an attorney?

Public Adjusters are trained to assess the damage, provide a cost estimate, and negotiate with your insurance company. If you go straight to an attorney, your lawyer will likely hire a public adjuster to investigate the claim. You will likely end up paying the cost for both professionals and possibly increase the amount of time it takes to complete the claims process.

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