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If you’ve recently filed a home insurance claim and you’re unhappy with the suggested payout, you may have some recourse. Hiring a public insurance adjuster provides you with a second opinion regarding the damage to your home. Public insurance adjusters may be a useful resource if you think your original adjuster missed something, or you have severe damage and want another estimate for peace of mind. Just keep in mind that engaging this type of adjuster will be an expense out of your own pocket.

What is a public insurance adjuster?

When you file a claim, your homeowners insurance company will assign a claims adjuster to you. The adjuster’s job is to evaluate your property damage and determine a fair payout amount based on the levels of coverage you carry on your policy.

Rather than using the insurance company’s adjuster, some policyholders choose to hire a public adjuster instead. Like a claims adjuster, a public adjuster will assess the damage to your property, help determine the scope of repairs and estimate the replacement value for those repairs. The big difference is that instead of working on behalf of the insurance company like an insurance claims adjuster does, a public claims adjuster works for you.

After your homeowners insurance company issues the settlement, the adjuster receives a percentage of the payout amount as payment for their services. It is important to note that insurers do not consider the payment amount owed to the adjuster when determining the claims payout amount, since the adjuster payout is your responsibility.

It’s worth noting that you can also hire a public adjuster for an auto insurance claim. While public adjusters are more commonly associated with property damage claims, some may also handle car insurance claims. They can assess the damages, negotiate with the insurance company and work to maximize the settlement for the policyholder.

When should you hire a public adjuster?

A public adjuster will handle your claim and communicate with your insurance company on your behalf. Some people feel that the extra expense of hiring a public adjuster is worth it, if only for the peace of mind that they won’t have to handle the claims process themselves. Additionally, the public adjuster will look closely at your claim and help ensure that no damage is overlooked. Depending on what they find, you might get a larger insurance settlement to repair the identified damage.

A public adjuster might be right for you if:

• Your claim is large or damage is severe
• You find working with insurance companies to be stressful
• You’ve had a poor claims experience in the past
• You are too busy to correspond with your insurance company
• You feel that claim settlement is too low

Are there downsides to hiring a public adjuster?

While a public insurance adjuster may be a helpful advocate, there are still some potential pitfalls. Some people may find that hiring their own adjuster is not the right choice, particularly if their priority is closing the claim fast.

When considering a public adjuster, consider:

• The payout could be delayed by the public adjuster’s process.
• Many public adjusters won’t work on smaller claims.
• Your overall payout could be smaller than anticipated once you pay your adjuster, particularly if they come back with the same estimate as the first adjuster.
• You may lose some transparency when the public adjuster takes over communication with your insurer.
• Your insurer is not obligated to take the recommendation of your public adjuster.

“The homeowner doesn’t necessarily have to hire a public adjuster,” says Chantal Roberts, a registered professional adjuster with over 25 years of experience in the insurance industry. “If there is a disagreement in the amount of damages, the policy has a method of resolving that outside of litigation. And the state department of insurance will investigate the claim if the homeowner files a complaint against the carrier.

How do you find a public insurance adjuster?

Finding a public insurance adjuster is relatively easy. Start by searching the National Association of Public Insurance Adjusters (NAPIA) website. The NAPIA Directory lists every public adjusting firm required to be licensed in their state of operation. You can enter your city and state or ZIP code to see a list of adjusters in your area.

The other way to find a public insurance adjuster is to get a recommendation from friends or family members. Ideally, you want to hire someone reputable and effective. Reading online customer reviews can also be helpful.

Once you find a few contenders, find out how much they charge. Most public adjusters keep a percentage of the final claim payout. It could be as little as 5 percent and as much as 20 percent. If you are facing a large claim with a potentially high payout, factor in the price before choosing to hire a public adjuster.

Tips for hiring a public adjuster

A policyholder should ask for and confirm licensing and references. They should also ask about the PA’s experience level in their particular type of claim. A PA that mainly handles roof claims may not be a good fit for a fire claim. Or one that handles primarily residential claims may not have the skill set for commercial claims.

 

Nathan Ortiz, public insurance adjuster, Bravura Claims Negotiations

Make sure they’re the right fit

Like hiring any other professional, get references, ask questions about the process, the coverage, and make sure the public adjuster feels like a good fit for you. Public adjusters who are also offering to do the repairs can be a red flag. Red flags can be found in their rhetoric. Someone that must speak poorly of either side of adjusting claims tends to be a red flag.

David Princeton, claim consultant, Advocate Claim Service

What should you expect from hiring a public adjuster?

When you hire a public adjuster, they will handle the entire claim process on your behalf. They serve several key functions during the negotiation process with your insurer:

• They will visit your home to survey the damage, do a comprehensive review of your claim, calculate their recommended payout and coordinate with your insurance company to process your payout.
• If you choose to negotiate your payout with the insurance company, your public adjuster will act as the liaison, so you don’t have to go back and forth with the insurer yourself.
• Working with a public adjuster could lead to a higher payout. A report from the Florida Association of Public Insurance Adjusters (FAPIA) found that homeowners who hired their own insurance claims adjuster for catastrophe claims between two years typically received a higher payout from their insurers, usually by a few thousand dollars.

Frequently asked questions

• What is the difference between a company adjuster and an independent adjuster?
  

  Normally, when you file a claim with your home or car insurance company, it will assign one of its own adjusters to investigate your claim, come to a decision and determine a payout amount if the claim is approved. An independent adjuster does not work for an insurance company—they work for you. The independent agent acts as a liaison between you and your insurance company. They file the claim for you and work with the insurance provider to arrive at a fair payout amount. Note that you do have to pay out of pocket for an independent adjuster.

• Can I hire a contractor instead of a public adjuster?
  

  In short, no. A contractor and a public adjuster have separate responsibilities. While a contractor is qualified to survey damage and estimate repair costs, they cannot handle insurance claims. A public adjuster may consult a contractor for a second opinion, but generally a public adjuster is needed to navigate the insurance claim process.

• How much does a public insurance adjuster charge?
  

  Public insurance adjusters typically charge a percentage of the final insurance settlement amount, ranging from 5-20 percent, although specific rates may vary. The fee structure is based on the complexity of the claim, the extent of damage and the adjuster’s level of involvement. Some adjusters may charge a higher percentage for more challenging cases or complex claims. It’s important to clarify the fee arrangement with the public insurance adjuster before hiring them to ensure that it aligns with industry standards and regulations. Clients should be wary of any upfront fees and fully understand the terms of the agreement. Keep in mind that your home insurance rate is also likely to rise after filing any claim.