Monday, December 27, 2021
What is a Public Adjuster and What Do They Do?
By Ron Reitz
In California, there are three types of licensed Insurance Adjusters
According to CAPIA, the California Association of Professional Insurance Adjusters a Company Adjuster is employed by the Insurance Company to represent the company in dealing with your loss and damages. The Company Adjuster's main responsibility is to protect the interests of the Insurance Company.
An Independent Adjuster is hired by the Insurance Company to represent the company in dealing with your loss and damages. The Independent Adjuster's main responsibility is also to protect the interests of the Insurance Company.
A Public Adjuster is the only Adjuster specifically licensed by the State of California to represent you, the Insured. The Public Adjuster's main responsibility is to protect you and your interests in claims against a loss with the Insurance Company.
In addition to California, currently more than 43 other states and the District of Columbia require an adjuster to hold this licensure in order to represent the insured.
According to NAPIA, the National Association of Public Insurance Adjusters, "Public Adjusters are professionals who are employed exclusively by a policyholder who has sustained an insured loss. They handle every detail of the claim, working closely with the insured to provide the most equitable and prompt settlement possible. A Public Adjuster inspects the loss site immediately, analyzes the damages, assembles claim support data, reviews the insured's coverage, determines current replacement costs and exclusively serves the client, not the insurance company."
What does that mean?
If you are overwhelmed by a process of determining what coverages you have and then calculating the amount of your loss, you may consider speaking with a Public Insurance Adjuster. Insurance policies can be very complex and difficult to understand. Often coverage is excluded in one section of the policy and then granted back to you in another section. It is also very important for the insured to meet all of the policy conditions in order to be paid on their claim. If you have ever had the unfortunate experience of suffering a loss and going through the claim process, you will understand what a daunting ordeal it can become.
However, after a disaster, insurance companies often discourage claimants from hiring a Public Adjuster.
According to United Policy Holders, a non-profit, tax-exempt organization dedicated to educating the public on insurance issues and consumer rights, "This happens all the time. Insurance companies don't want the insured to be on an even playing field. They want to control the situation and not deal with someone as or more knowledgeable than they are. Insurers are predisposed to minimize claim payments. Public Adjusters are predisposed to maximize claim payments."
Public Adjusters help you get your life back. Instead of using up all your waking hours battling with the insurance company, your Public Adjuster does that for you. A good Public Adjuster works with you to maximize your time so that you can get your daily life, your family life, and your work life back in order while the Public Adjuster and the Insurance Company negotiate to get your home and possessions as close as possible to the state they were in before the disaster.
Experienced Public Adjusters are familiar with the local insurance companies, their representatives and their regional adjusters. They may have worked together before and may be able to effectively come up with a plan that will maximize the insured's insurance claim payment without requiring a lot of heated discussion and argument. It makes sense to let two professionals amicably settle your claim while you go ahead and live your life.
The insurance company adjuster knows that the Public Adjuster is an expert with the intricacies of insurance policies and negotiation, and therefore he or she is much more likely to come up with a larger, more accurate and acceptable offer. Like with most business negotiations, the easier and more professional the discussion (i.e. no emotion), the more likely the settlement to be biased towards the policyholder.
How a Good Public Adjuster Can Help Save Your Family and Your Emotions
One of the biggest challenges in coming to a solution that is acceptable to all parties in a disaster insurance case is emotion and anger. For the homeowner who has lost everything, this is a very emotional time. Your spouse may be devastated and angry. Your children are devastated, lost and confused. Everything they know is gone. You may have even lost your family pet in the disaster.
This emotional roller coaster can tear families apart. Now, add the stress of compiling all necessary rebuilding costs and the strain of negotiating with the insurance company and the insurance company's adjusters and you will find yourself in a very difficult environment.
It is common to feel helpless and desperate after a fire destroys all of your possessions. Having to then suffer through the indignity and endless questions from a seemingly uncaring insurance claims representative is enough to send the most sane and calm person over the edge.
By letting a qualified public adjuster work on your behalf, you will be saving yourself a great deal of emotional turmoil.
Most insurance policy holders who have been through the process say this is the biggest benefit of using a Public Adjuster. Yes, getting a big payout is good but the fact they are once again able to live their lives while the adjustment and negotiation is in process is often the most valuable part of the entire process. Public Adjusters will keep you from signing documents that you shouldn't, and they will make sure you keep the right documentation of your expenses. They will also do their best to make sure you do not make any mistakes that will delay or damage your claim.
Good Public Adjusters understand your tears, fears and anger. They won't cut you off or walk away from your emotions. A good Public Adjuster will take the time to listen; they will help make your life as livable as possible while the claim adjustment is underway.
One of the most difficult and challenging aspects of filing a claim is creating an inventory list of your possessions and assigning correct replacement values to those items. A good Public Adjuster will show you how to do this - tips and tricks that will help the property owner recall what was lost as well as the best ways to figure out and calculate replacement costs. Many Public Adjusters can actually do this work for you - researching the value of particular items you lost and how much it will cost to replace them. Doing this kind of research can consume many hours a day. For many disaster survivors it is much more efficient and less heartbreaking to have their Public Adjuster do that for them.
Ok, lets talk about money.
Your Public Adjuster will work with you and various construction, restoration and repair professionals who know LOCAL conditions, prices, and current building codes in order to develop an accurate estimate of what it will take to truly rebuild your property to its previous condition. This includes various improvements and additions that you have made to the property, as well as upgrades that are now required to meet local building codes - as long as you have the appropriate coverages.
Your Public Adjuster will also review the costs of rebuilding your outbuildings and additional structures such as a garage, patio, pool house, etc. Public Adjusters will also review and prepare estimates to restore your landscaping based upon your specific coverage. Many people forget the many tens of thousands of dollars they had spent on plants, materials and labor required to create a well-landscaped yard. Your homeowners insurance policy should cover that restoration as well.
A good Public Insurance Adjuster understands a wide range of insurance policies. They have seen plenty of insurance policies and have been trained to understand the various policy language, endorsements, exclusions riders and schedules. The language is often so convoluted that even the professionals may not agree on what the policy is actually saying. This is when an experienced and educated public adjuster can make all the difference.
According to NAPIA, " The typical fire policy contains hundreds of provisions and stipulations - various forms and riders that are constantly changing and many complex details about your requirements in case of loss. Most people do not know or understand these policy provisions - and most do not realize that the burden of proof is on them, the policyholder. Most insurance company representatives actually prefer to work with an experienced accredited public insurance adjuster rather than an inexperienced insured." Unlike an insurance company adjuster, a good Public Adjuster will take the time to go through ALL your policy documents to make sure you are getting ALL the money that you are entitled to.
What if you are under insured?
As a result of the wildfires that swept through Southern California in 2003 and 2007, it became evident that many homeowners were not properly insured. Sometimes it was their fault - they deliberately made a decision to not pay for the insurance they needed. However, in many cases, as their homes had increased in value, as they added improvements, and as overall repair and replacement costs skyrocketed, their policy was not reviewed to see if it had appropriate amounts of coverage to meet the replacement cost burden of the home.
A good Public Adjuster understands the impact and reality of under insurance and in certain cases, can work with the insurance company to get you monies for coverage that you should have had but were not offered or provided.
Why does a property owner need a Public Adjuster?
According to NAPIA, "The highly stressful period following a loss is a difficult time for individuals and businesses. A Public Adjuster can take those major headaches away and let you get back to your home or business. A typical fire or flood policy contains hundreds of provisions and stipulations, constantly changing forms and endorsements, and many complex details such as inventory appraisals and real estate evaluations that are required in case of a loss. Most policyholders do not know that the burden of proof is theirs. Public Adjusters know the insurance business and are familiar with all procedures so they can work quickly to expedite payments."
By using a good Public Adjuster, not only will you get properly compensated for your insured losses, but you will also be able to avoid much of the conflict, anger and helplessness that can sometimes arise when adjusting an insurance claim on your own. Consider your family - your spouse and children. Consider your job. Do you have the available time and energy necessary to deal with the insurance company? A good Public Adjuster will get you what you are owed and may save both your career and your family by not monopolizing your time.
http://www.qualityclaims.com
Ron Reitz is president of San Diego-based Quality Claims Management Corp., a nationally licensed public insurance adjuster, providing hazard claim recovery services to investors, mortgage servicers, homeowners and businesses. Earlier, he pioneered the national hazard insurance claims business of GMAC-RFC (now GMAC-ResCap). He is the past president of the California Association of Public Insurance Adjusters and currently serves on the board of the National Association of Public Insurance Adjusters. Contact Quality Claims Management at (866) 45-1183 or http://www.qualityclaims.com.
Sunday, December 26, 2021
Why Hire a Public Adjuster?
By Michael Birzon
You've seen the television commercials warning you 'not to speak to the insurance adjuster!'. Attorneys and public adjusters caution the public that insurance companies have their attorneys fighting for them and you need an attorney or public adjuster fighting for you!
However, there is a big difference between an attorney and a PA. Attorneys are required to graduate college, attend 3 years of law school and pass a rigorous state bar examination. Adjusters who represent property owners against insurance companies must pass a 100 question licensing test with no prerequisite course of study at all.
During the 2004-2005 storms the University of Central Florida received call after call from candidates, particularly in South Florida, who wanted to qualify for a 3-20 license. NOTE: Adjusters who represent property owners are paid a percentage fee from any monies recovered on behalf of the client.
SOLICITATION
When callers were asked if they had any claims experience, it was often the case that the new applicant was going to serve as a 'sales person' rather than an adjuster, but they needed a license to solicit clients.
What that meant was that the new licensee was going to personally call on disaster victims trying to sell them on a PA firm's services. Making that sale meant that the sales person would receive a percentage of any insurance recovery.
Now attorneys are not allowed to go to someone's house and solicit clients, so the question must be raised, why does Florida allow Public Adjusters to solicit clients in person? Honestly, there is no good answer to that question.
Disaster victims are vulnerable and for that reason, attorneys may not engage in solicitation. Public Adjusters argue that property owners need that information, but the same argument could be made for legal services as well.
LICENSING AND APPRENTICESHIP
As of January 1, 2009, new licensee candidates will no longer be allowed to just take the state licensing examination. They will be required to serve a 12 month apprenticeship under the guidance of a licensed 3-20 Adjuster. Sounds good, except there is no requirement that any licensed PA actually provide an apprenticeship.
The Catch 22 is that while new Public Adjusters must serve an apprenticeship, there are not likely to be many, if any at all, available. PA's are not required to actually provide apprenticeships to new applicants. If there are few or no apprenticeships, there will be no new public adjusters competing with existing firms for those contingency fees.
ATTORNEYS VS PUBLIC ADJUSTERS
Why would a property owner hire a PA rather than an attorney? Public adjusters will claim that they know the claims process better than attorneys. This may be true in some instances, since some public adjusters come from an extensive claims background, however many do not.
One thing is absolutely true...all attorneys come from extensive legal training and no public adjuster is empowered to file a lawsuit or litigate a claim that cannot be settled. If you are considering hiring a public adjuster, here are some guidelines to consider:
1. What is the adjusters background and training?
2. What types of cases have been successfully settled and are there references you can contact?
3. What complaints, if any have been filed against the adjuster or firm?
TIP
Find out what the insurance company's position is before employing a public adjuster. If you are the insured you have an obligation to cooperate and assist in the settlement of your claim. It may well be that you can resolve your claim without pay a percentage to either an attorney or a public adjuster.
In the end, whether you are hiring a public adjuster or an attorney, find out all you can about that individual before signing a contract. You are your own best advocate!
ABOUT THE AUTHOR
Dr. Michael Birzon is an attorney and adjunct professor with Florida Insurance University/University of Central Florida. Dr. Birzon has litigated claims for over 30 years and is the author of the Accredited Claims Adjuster Designation approved by the State of Florida. You may contact Dr. Birzon at (407) 927-1235 or email at: flainsu@mail.ucf.edu
You've seen the television commercials warning you 'not to speak to the insurance adjuster!'. Attorneys and public adjusters caution the public that insurance companies have their attorneys fighting for them and you need an attorney or public adjuster fighting for you!
However, there is a big difference between an attorney and a PA. Attorneys are required to graduate college, attend 3 years of law school and pass a rigorous state bar examination. Adjusters who represent property owners against insurance companies must pass a 100 question licensing test with no prerequisite course of study at all.
During the 2004-2005 storms the University of Central Florida received call after call from candidates, particularly in South Florida, who wanted to qualify for a 3-20 license. NOTE: Adjusters who represent property owners are paid a percentage fee from any monies recovered on behalf of the client.
SOLICITATION
When callers were asked if they had any claims experience, it was often the case that the new applicant was going to serve as a 'sales person' rather than an adjuster, but they needed a license to solicit clients.
What that meant was that the new licensee was going to personally call on disaster victims trying to sell them on a PA firm's services. Making that sale meant that the sales person would receive a percentage of any insurance recovery.
Now attorneys are not allowed to go to someone's house and solicit clients, so the question must be raised, why does Florida allow Public Adjusters to solicit clients in person? Honestly, there is no good answer to that question.
Disaster victims are vulnerable and for that reason, attorneys may not engage in solicitation. Public Adjusters argue that property owners need that information, but the same argument could be made for legal services as well.
LICENSING AND APPRENTICESHIP
As of January 1, 2009, new licensee candidates will no longer be allowed to just take the state licensing examination. They will be required to serve a 12 month apprenticeship under the guidance of a licensed 3-20 Adjuster. Sounds good, except there is no requirement that any licensed PA actually provide an apprenticeship.
The Catch 22 is that while new Public Adjusters must serve an apprenticeship, there are not likely to be many, if any at all, available. PA's are not required to actually provide apprenticeships to new applicants. If there are few or no apprenticeships, there will be no new public adjusters competing with existing firms for those contingency fees.
ATTORNEYS VS PUBLIC ADJUSTERS
Why would a property owner hire a PA rather than an attorney? Public adjusters will claim that they know the claims process better than attorneys. This may be true in some instances, since some public adjusters come from an extensive claims background, however many do not.
One thing is absolutely true...all attorneys come from extensive legal training and no public adjuster is empowered to file a lawsuit or litigate a claim that cannot be settled. If you are considering hiring a public adjuster, here are some guidelines to consider:
1. What is the adjusters background and training?
2. What types of cases have been successfully settled and are there references you can contact?
3. What complaints, if any have been filed against the adjuster or firm?
TIP
Find out what the insurance company's position is before employing a public adjuster. If you are the insured you have an obligation to cooperate and assist in the settlement of your claim. It may well be that you can resolve your claim without pay a percentage to either an attorney or a public adjuster.
In the end, whether you are hiring a public adjuster or an attorney, find out all you can about that individual before signing a contract. You are your own best advocate!
ABOUT THE AUTHOR
Dr. Michael Birzon is an attorney and adjunct professor with Florida Insurance University/University of Central Florida. Dr. Birzon has litigated claims for over 30 years and is the author of the Accredited Claims Adjuster Designation approved by the State of Florida. You may contact Dr. Birzon at (407) 927-1235 or email at: flainsu@mail.ucf.edu
Saturday, December 25, 2021
Public Adjusters - How to Choose the Right Public Adjuster
By Russell Longcore
Public Adjusters (PAs) are licensed claims adjusting professionals that represent the policyholder in the calculation, preparation and submission of a claim. They do not work for the insurance company. They work for YOU, the person or business who suffered the loss.
Public Adjusters only work on property claims, such as homeowners, apartment complexes, and businesses. They do not represent clients in auto or liability claims.
The biggest challenge for a policyholder who has had an insured loss is the calculation, preparation and submission of his claim. Most people do not have the expertise to submit an insurance claim, and they end up leaving hundreds or even thousands of dollars "on the table" that they are entitled to collect...but don't collect. A PA will maximize your claim settlement.
I strongly recommend that you contact a PA any time you have a property claim. A consultation will customarily cost you nothing, but their representation could collect thousands more for you.
When it's time to find a Public Adjuster, do the following:
1. Use your computer search engine and search for "Public Adjuster" along with your city or zip code.
2. Look in the Yellow Pages under "Public Adjusters."
3. Go to: www.napia.com which is the website for the National Association of Public Insurance Adjusters and get referrals in your area.
Contact at least two PAs in your area and interview them with these questions:
1. Are you licensed in your state?
2. How many years have you been a PA?
3. Do you have a specialty?
4. Can you provide a list of at least ten satisfied customers with phone numbers?
5. Do you have documentation of your success in insurance settlements?
6. Have you ever had a complaint filed against you with the Department of Insurance?
7. Please explain your fees and how you are paid.
8. Please provide a copy of your retainer contract.
Based upon the information you receive from each PA, and how you get along with them, make your choice which PA will be on your team. Then work together to collect every dollar that you are entitled to collect.
Now, I'd like to offer you two special reports at no cost. One is "5 Things To Do When Shopping For Car Insurance," and the other is "5 Things To Avoid When Shopping For Car Insurance." Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.
P.S. WARNING!! Do Not Buy Insurance, or Submit an Insurance Claim Without Visiting This Website!
check out: http://www.claimsecrets.com
Get Insurance Quotes and Claim Strategies at: http://www.InsuranceQuoteHQ.com
New book, "Commercial Insurance Claim Secrets REVEALED!" coming soon!
Public Adjusters (PAs) are licensed claims adjusting professionals that represent the policyholder in the calculation, preparation and submission of a claim. They do not work for the insurance company. They work for YOU, the person or business who suffered the loss.
Public Adjusters only work on property claims, such as homeowners, apartment complexes, and businesses. They do not represent clients in auto or liability claims.
The biggest challenge for a policyholder who has had an insured loss is the calculation, preparation and submission of his claim. Most people do not have the expertise to submit an insurance claim, and they end up leaving hundreds or even thousands of dollars "on the table" that they are entitled to collect...but don't collect. A PA will maximize your claim settlement.
I strongly recommend that you contact a PA any time you have a property claim. A consultation will customarily cost you nothing, but their representation could collect thousands more for you.
When it's time to find a Public Adjuster, do the following:
1. Use your computer search engine and search for "Public Adjuster" along with your city or zip code.
2. Look in the Yellow Pages under "Public Adjusters."
3. Go to: www.napia.com which is the website for the National Association of Public Insurance Adjusters and get referrals in your area.
Contact at least two PAs in your area and interview them with these questions:
1. Are you licensed in your state?
2. How many years have you been a PA?
3. Do you have a specialty?
4. Can you provide a list of at least ten satisfied customers with phone numbers?
5. Do you have documentation of your success in insurance settlements?
6. Have you ever had a complaint filed against you with the Department of Insurance?
7. Please explain your fees and how you are paid.
8. Please provide a copy of your retainer contract.
Based upon the information you receive from each PA, and how you get along with them, make your choice which PA will be on your team. Then work together to collect every dollar that you are entitled to collect.
Now, I'd like to offer you two special reports at no cost. One is "5 Things To Do When Shopping For Car Insurance," and the other is "5 Things To Avoid When Shopping For Car Insurance." Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.
P.S. WARNING!! Do Not Buy Insurance, or Submit an Insurance Claim Without Visiting This Website!
check out: http://www.claimsecrets.com
Get Insurance Quotes and Claim Strategies at: http://www.InsuranceQuoteHQ.com
New book, "Commercial Insurance Claim Secrets REVEALED!" coming soon!
Friday, December 24, 2021
When to Use a Public Adjuster to File a Commercial Insurance Claim
By Jacquelyn Lynn
When you buy insurance, the claims process sounds so simple: you suffer a loss, you file a claim, you get your money. The reality can often be more complicated, and it may be to your advantage to hire someone familiar with the claims process to help you--and that someone would be a public adjuster.
By definition, a public adjuster is a representative for the policyholder who interacts with the insurance company and assists the policyholder in presenting their claim for insurance benefits. Because claims for business losses are often complex, in many cases, entrepreneurs may find it worthwhile to delegate the task of handling them to someone who specializes in providing such a service. Most business owners and even managers find that their time is better spent on revenue-generating activities rather than navigating the unfamiliar waters of an insurance claim.
If you decide to retain a public adjuster, it's important to have the right one--one who is experienced with commercial claims, who has handled claims similar to yours, and who has a reputation for honesty and integrity. Be wary of an adjuster who promises more than you are entitled to--word gets around and insurance companies know who those adjusters are. The insurer's adjuster will likely scrutinize the work of a questionable public adjuster more closely, and an inflated claim could lead to charges of insurance fraud.
Public adjusters are listed in the yellow pages under "adjusters," but your best bet for finding one is through referrals. Ask the insurance company's adjuster who they like to work with. Most company claims adjusters appreciate working with a reputable public adjuster because it makes the process easier for them. Also ask other business owners for recommendations. Find out how long the adjuster has been in the business, what their insurance claims handling background is (you want one with substantial claims experience from both the insurance company side and the policyholder side), get and check references. Fees are negotiable, and typically based on the amount recovered. They range from 8 to 15 percent, with most being in the 10 to 12 percent range. Most business owners who have used a public adjuster say the fee is well worth it and is ultimately less than what it would cost to have done the job internally.
Finally, once you've hired an adjuster, don't totally abdicate responsibility for the claim. Insist that the adjuster provide you with regular status reports and copies of correspondence, and consults with you as significant events occur.
Do you always need a public adjuster? No. If the claim is simple and straightforward, you'll save money by handling it yourself.
When you buy insurance, the claims process sounds so simple: you suffer a loss, you file a claim, you get your money. The reality can often be more complicated, and it may be to your advantage to hire someone familiar with the claims process to help you--and that someone would be a public adjuster.
By definition, a public adjuster is a representative for the policyholder who interacts with the insurance company and assists the policyholder in presenting their claim for insurance benefits. Because claims for business losses are often complex, in many cases, entrepreneurs may find it worthwhile to delegate the task of handling them to someone who specializes in providing such a service. Most business owners and even managers find that their time is better spent on revenue-generating activities rather than navigating the unfamiliar waters of an insurance claim.
If you decide to retain a public adjuster, it's important to have the right one--one who is experienced with commercial claims, who has handled claims similar to yours, and who has a reputation for honesty and integrity. Be wary of an adjuster who promises more than you are entitled to--word gets around and insurance companies know who those adjusters are. The insurer's adjuster will likely scrutinize the work of a questionable public adjuster more closely, and an inflated claim could lead to charges of insurance fraud.
Public adjusters are listed in the yellow pages under "adjusters," but your best bet for finding one is through referrals. Ask the insurance company's adjuster who they like to work with. Most company claims adjusters appreciate working with a reputable public adjuster because it makes the process easier for them. Also ask other business owners for recommendations. Find out how long the adjuster has been in the business, what their insurance claims handling background is (you want one with substantial claims experience from both the insurance company side and the policyholder side), get and check references. Fees are negotiable, and typically based on the amount recovered. They range from 8 to 15 percent, with most being in the 10 to 12 percent range. Most business owners who have used a public adjuster say the fee is well worth it and is ultimately less than what it would cost to have done the job internally.
Finally, once you've hired an adjuster, don't totally abdicate responsibility for the claim. Insist that the adjuster provide you with regular status reports and copies of correspondence, and consults with you as significant events occur.
Do you always need a public adjuster? No. If the claim is simple and straightforward, you'll save money by handling it yourself.
Jacquelyn Lynn is the editor of Flashpoints newsletter. Flashpoints is a comprehensive information resource for business owners and managers who want to take their operation to the Flashpoint. Visit http://www.theflashpoints.com to sign up for a free subscription to Flashpoints newsletter plus an extra free gift: The Mindset of High Achievers by JK Harris and Jacquelyn Lynn.
In addition, Jacquelyn Lynn is the author of more than 20 books, including Entrepreneur's Almanac; Online Shopper's Survival Guide; Make Big Profits on eBay (with Charlene Davis); In Search of the Five-Cent Nickel (with Don Abbott); and 11 titles in Entrepreneur Media's StartUp Guide series. She is working on a new e-book about business insurance. Visit http://www.jacquelynlynn.com for more details and to sign up for e-mail alerts.
In addition, Jacquelyn Lynn is the author of more than 20 books, including Entrepreneur's Almanac; Online Shopper's Survival Guide; Make Big Profits on eBay (with Charlene Davis); In Search of the Five-Cent Nickel (with Don Abbott); and 11 titles in Entrepreneur Media's StartUp Guide series. She is working on a new e-book about business insurance. Visit http://www.jacquelynlynn.com for more details and to sign up for e-mail alerts.
Thursday, December 23, 2021
Public Adjuster Qualifications - How to Find Help After the Storm
By Don Wood
There are three categories of adjusters - company, independent, and public. Their licensing requirements are usually the same. The difference is in how they are paid. You will need one or more of them when you suffer an insurance loss.
The first is a company adjuster. He's a staff adjuster, working for your insurance company. He's on salary and handles all kinds of claims in your area - either residential or commercial but usually not both. He's been with the company long enough to be licensed and trusted with the company's clients. He's the one dispatched when you call your agent or home office to "report a claim." Your agent represents you only until you have a claim. Now, the staff adjuster becomes the face of the insurance company. Within a few days after he's done, he's usually followed by a quality control adjuster who makes sure he did not overpay the claim and he worked hard to answer your questions. Many local staff adjusters have check-writing authority up to a limit determined by their skill and tenure. Some of them do "on-site settlements" or "table-top claims handling." They work hard under strict guidelines, and they are good at what they do.
The second is an independent adjuster. He comes from a bureau of adjusters. Some of the large bureaus are Pilot, Crawford & Company, and General Adjustment Bureau (commonly called GAB).These men are also nicknamed "storm chasers." A local catastrophe results in a call "Send us 100 adjusters." They will be dispatched to the area and will put on your insurance company's hat while they are in town. They are usually paid a sliding fee per claim. Their job is to finish as many claims a day as they can. They are paid per claim, and they are usually very helpful and thorough. They have seen all kinds of claims and they travel a lot. Their estimates are sent back to the regional office where the checks are drafted and mailed to the customers. The independent adjusters are the ones who want to settle your claim quickly, at least on the front end. Once they complete their work, you will probably not see them again. You will be dealing with someone in the regional office who reviews your file and processes supplement requests.
The third category, and the most important adjuster for our purposes here, is the public adjuster. Most public adjusters work alone. Their license is issued by the same state insurance department that licenses the staff and independent adjusters. They are usually bonded, and they are held to high knowledge and ethics standards. There are few large public adjuster firms. Most are one man companies. They handle fewer numbers of claims than either of the other two categories because of the nature of their job. You will see why in a moment.
Public adjusters have been called the "checks and balances" in the insurance industry. Yet public adjusters are frequent targets of over-regulation, resistance, or even removal from their vital role in the settlement process due to monopolistic tendencies in the industry.
If you have a large claim, if you have a combination of flood and wind claims, or if you have a complicated claim, you should consider hiring a public adjuster.
Just like you need a good real estate agent, attorney, or certified public accountant, there may come a time when you need a good public adjuster. When you do, he's worth any price.
I have been a licensed adjuster in all three categories. I have worked for a national insurance company as a staff adjuster. I have traveled with an independent adjusting firm. I have provided millions of dollars of estimates for public adjusters before becoming one myself.
I have seen inadequate settlements. I have seen unscrupulous people - both insurance adjusters and insureds. I have seen great hard-working adjusters in the insurance industry - both on the company side and on the public adjuster side.
By virtue of the way the system works, while working on a claim, the various adjusters are adversarial. That does not mean their behavior has to be unprofessional. But the staff and independent adjusters have a fiduciary duty to the insurance company. The public adjuster has a fiduciary duty to the client, the insured. Simply put, this means staff and independent adjusters are paid by the insurance company. The public adjuster is paid by the client. One works to keep the claim costs down while maintaining customer loyalty. The other works to get the insured all the money he can under the terms of the policy for the covered loss.
Public adjusters are usually paid by commission, as a percentage of the insurance settlement. Both Florida and Texas, for instance, cap their fees at 10% of the settlement if the loss resulted from a designated catastrophic event. This means if the public adjuster gets you nothing, he gets nothing. The fees are negotiable.
Public adjusters write their own contracts, which include some common state-required phrases. But these contracts vary quite a bit, and so do their levels of expertise and services. You should read them thoroughly and investigate their track record. Most insureds, homeowners or business owners, do not regularly handle insurance claims. They have a claim, meet the company adjuster, get the settlement check, and it's over. Most claims do not need a public adjuster. But if you run into a problem getting an adequate or if you have overlapping claims, such as flood vs. wind or condo association vs. condo unit owners, or if you have a large claim, get professional help.
Educate yourself on the benefits of having an expert handle the complicated and frustrating project of completing and following your claim. The second storm of paperwork can overwhelm you. Get references. Check qualifications. Ask attorneys who they would use to handle their own residence loss. Ask business owners about their experience with public adjusters. You will hear good stories and horror stories. Do you homework to find someone you can trust. With the help of a licensed, professional public adjuster, your claim will move toward settlement more quickly and for a more adequate dollar amount.
Smooth Sailing!
There are three categories of adjusters - company, independent, and public. Their licensing requirements are usually the same. The difference is in how they are paid. You will need one or more of them when you suffer an insurance loss.
The first is a company adjuster. He's a staff adjuster, working for your insurance company. He's on salary and handles all kinds of claims in your area - either residential or commercial but usually not both. He's been with the company long enough to be licensed and trusted with the company's clients. He's the one dispatched when you call your agent or home office to "report a claim." Your agent represents you only until you have a claim. Now, the staff adjuster becomes the face of the insurance company. Within a few days after he's done, he's usually followed by a quality control adjuster who makes sure he did not overpay the claim and he worked hard to answer your questions. Many local staff adjusters have check-writing authority up to a limit determined by their skill and tenure. Some of them do "on-site settlements" or "table-top claims handling." They work hard under strict guidelines, and they are good at what they do.
The second is an independent adjuster. He comes from a bureau of adjusters. Some of the large bureaus are Pilot, Crawford & Company, and General Adjustment Bureau (commonly called GAB).These men are also nicknamed "storm chasers." A local catastrophe results in a call "Send us 100 adjusters." They will be dispatched to the area and will put on your insurance company's hat while they are in town. They are usually paid a sliding fee per claim. Their job is to finish as many claims a day as they can. They are paid per claim, and they are usually very helpful and thorough. They have seen all kinds of claims and they travel a lot. Their estimates are sent back to the regional office where the checks are drafted and mailed to the customers. The independent adjusters are the ones who want to settle your claim quickly, at least on the front end. Once they complete their work, you will probably not see them again. You will be dealing with someone in the regional office who reviews your file and processes supplement requests.
The third category, and the most important adjuster for our purposes here, is the public adjuster. Most public adjusters work alone. Their license is issued by the same state insurance department that licenses the staff and independent adjusters. They are usually bonded, and they are held to high knowledge and ethics standards. There are few large public adjuster firms. Most are one man companies. They handle fewer numbers of claims than either of the other two categories because of the nature of their job. You will see why in a moment.
Public adjusters have been called the "checks and balances" in the insurance industry. Yet public adjusters are frequent targets of over-regulation, resistance, or even removal from their vital role in the settlement process due to monopolistic tendencies in the industry.
If you have a large claim, if you have a combination of flood and wind claims, or if you have a complicated claim, you should consider hiring a public adjuster.
Just like you need a good real estate agent, attorney, or certified public accountant, there may come a time when you need a good public adjuster. When you do, he's worth any price.
I have been a licensed adjuster in all three categories. I have worked for a national insurance company as a staff adjuster. I have traveled with an independent adjusting firm. I have provided millions of dollars of estimates for public adjusters before becoming one myself.
I have seen inadequate settlements. I have seen unscrupulous people - both insurance adjusters and insureds. I have seen great hard-working adjusters in the insurance industry - both on the company side and on the public adjuster side.
By virtue of the way the system works, while working on a claim, the various adjusters are adversarial. That does not mean their behavior has to be unprofessional. But the staff and independent adjusters have a fiduciary duty to the insurance company. The public adjuster has a fiduciary duty to the client, the insured. Simply put, this means staff and independent adjusters are paid by the insurance company. The public adjuster is paid by the client. One works to keep the claim costs down while maintaining customer loyalty. The other works to get the insured all the money he can under the terms of the policy for the covered loss.
Public adjusters are usually paid by commission, as a percentage of the insurance settlement. Both Florida and Texas, for instance, cap their fees at 10% of the settlement if the loss resulted from a designated catastrophic event. This means if the public adjuster gets you nothing, he gets nothing. The fees are negotiable.
Public adjusters write their own contracts, which include some common state-required phrases. But these contracts vary quite a bit, and so do their levels of expertise and services. You should read them thoroughly and investigate their track record. Most insureds, homeowners or business owners, do not regularly handle insurance claims. They have a claim, meet the company adjuster, get the settlement check, and it's over. Most claims do not need a public adjuster. But if you run into a problem getting an adequate or if you have overlapping claims, such as flood vs. wind or condo association vs. condo unit owners, or if you have a large claim, get professional help.
Educate yourself on the benefits of having an expert handle the complicated and frustrating project of completing and following your claim. The second storm of paperwork can overwhelm you. Get references. Check qualifications. Ask attorneys who they would use to handle their own residence loss. Ask business owners about their experience with public adjusters. You will hear good stories and horror stories. Do you homework to find someone you can trust. With the help of a licensed, professional public adjuster, your claim will move toward settlement more quickly and for a more adequate dollar amount.
Smooth Sailing!
Don Wood
Accredited Claim Adjuster
Licensed Public Adjuster
Windnetwork Certified Umpire
Insurance Appraiser
Loss Estimator
http://www.suncoastclaims.com
President
Suncoast Claims Inc.
362 Gulf Breeze Pkwy. #259
Gulf Breeze, FL 32561
Accredited Claim Adjuster
Licensed Public Adjuster
Windnetwork Certified Umpire
Insurance Appraiser
Loss Estimator
http://www.suncoastclaims.com
President
Suncoast Claims Inc.
362 Gulf Breeze Pkwy. #259
Gulf Breeze, FL 32561
Wednesday, December 22, 2021
Insurance Claims - Contact a Public Adjuster!
By Russell Longcore
Call a Public Adjuster to evaluate your claim!
A public adjuster (PA) is an adjuster that assists an insured who has had a loss in the preparation and presentation of the insurance claim. PAs perform very valuable services to the insured by consulting with the insured on options available in their recovery, filling out forms, helping prepare inventory lists, preparing estimates on structural damages, helping to find you a temporary place to live if you're home is too damaged to live in, assisting in negotiations for settlement...and many more vital functions.
Public Adjusters work only on losses that involve property, such as homes, businesses and public buildings. Those are called "first party property claims."
If you have a loss to your property that was caused by someone else, that is called a "third party property claim." An example is when a vehicle runs into a dwelling, causing damage. In some situations, PAs will accept clients for third party losses. However, PAs cannot directly negotiate a third part claim. They can either advise the client as to the extent and value of the third party loss, or work with an attorney in presenting the claim.
Public Adjusters do not handle Bodily Injury (Casualty) losses, such as happen in an automobile accident. For assistance in those kinds of losses, consult a personal injury attorney.
There's an easy way to understand the function of a Public Adjuster. Compare them to an attorney in a lawsuit, or a Certified Public Accountant or tax preparer when filing your tax forms with the Internal Revenue Service.
Let me ask you some questions:
If someone filed suit against you, would you represent yourself in court? Or, would you just call the plaintiff and say, "You've already got a lawyer. Why don't we just use yours?" Neither choice protects you, does it?
Would you allow the IRS to prepare your tax return for you? If you did, would you expect the IRS to do its best to find every tax deduction for you so that you paid the least tax or got the biggest refund?
Do you file your own tax returns, or do you hire a tax preparation professional to prepare your tax return on your behalf?
Do you hire a tax professional because:
1. You don't have time to do it yourself?
2. The IRS has written a tax code that is too complicated for a normal person to understand?
3. You usually get a larger refund, or smaller tax liability, when you use a professional...because the professional finds more deductions for you?
4. The fee you pay is usually far less than the additional money you save?
OK then...you've just found comparable reasons to use Public Adjusters.
1. You need your own experts to help you file your claim.
2. Policies are written by the insurance companies and are usually complicated and hard to understand. These policies are known as "contracts of adhesion," because they inherently benefit the author of the contract, the insurance companies.
3. Many people are not willing to take the time to learn about their policies and learn the claims process.
4. Some people are too busy with work, and family, and life, to handle their own claim...especially in the turmoil immediately after a significantly large claim.
5. Public Adjusters usually help the policyholder collect hundreds or even thousands more dollars when the policyholder submits a claim. Their fees are a very small percentage of the amount of the settlement.
PAs usually have to be licensed adjusters, and are usually regulated by the Insurance Department of your state. Some states have special licenses for Public Adjusters. Call your state's Insurance Department office to find out more information about what Public Adjusters can do in your state. You'll find contact information for the Insurance Commissioners for all US states in the Appendix of the book.
Many of the people on the insurance company side take it very personally when a policyholder hires a public adjuster. Many truly believe that the policyholder should just trust the insurance company and adjuster to do the right thing, and not ever question them.
Adjusters and insurance company personnel sometimes play games with their own policyholders when the insured hires a PA. I've heard claims examiners refuse to speak with the insured by phone, telling the insured that, now that they are represented, all conversations have to go through the PA.
However, there's nothing in your policy that states that. Public Adjusters are not attorneys, and the attorney/client relationship is not the same as the relationship between an insured and a Public Adjuster. If your adjuster or insurance company examiner tries to pull that stunt, he's just doing it to delay and cause you problems. Call his supervisor or call the Department of Insurance.
Isn't this amazing? The insurance company writes the policy, makes the rules hard to understand, and then gets mad at you when you hire someone to help you submit a claim. This would be like the Internal Revenue Service getting mad at you because you hired an accountant to help you prepare your tax return.
But it still happens, even though it makes no sense.
The environment is changing, though. Following the hurricane seasons of 2004 and 2005, a newfound respect has grown within the insurance community regarding the value and professionalism of an accredited, licensed Public Adjuster.
Why do you think that the insurance companies and adjusters are not happy when you hire Public Adjusters? There's one big reason. Usually, when a PA is involved, the dollar amount of the claim is higher than a claim without a PA.
When I first got into the claims adjusting field, the "old timers" told me horror stories about public adjuster. They told me how crooked they were, and how they grossly inflated the repair or replacement costs in claims. They told me stories of how PAs were liars and cheats and totally dishonest.
Yet, in my experience dealing with PAs in claims, from homeowner losses to large apartment building fires, to commercial and business losses, I have not met one public adjuster that I didn't like as a person. I have not met a public adjuster who acted in an unprofessional manner. I have not met a public adjuster who wasn't trying his best to make sure that his client...the policyholder who had a loss...got every dollar that was owed to them by the insurance company.
Public adjusters usually represent a client on a contingency basis. That simply means that they help present the claim documents to the insurance company and receive a percentage of the total amount of the insurance proceeds. The average percentage nationwide is 10%. The major incentive that makes the PA work hard is to help the insured get a larger settlement from the insurance company than the insured could have gotten by himself.
The PA is motivated to maximize your claim and expedite the claim adjustment process. It is a balance of making sure that the claim is packaged as completely as possible so you collect every dollar you are entitled to collect without creating unnecessary disputes with the insurance carrier. The PA does not charge for his services until after the claim is paid to you, so they are motivated to get it settled as quickly as possible. Their fee is usually all inclusive, with no additional out-of-pocket expenses. Most established Public adjusting firms can show you how their fee is absorbed in the adjustment process.
You should know that fees are negotiable with PAs. I've seen PA firms agree to substantial discounts from their standard 10% fee on huge commercial losses, and I regularly see 10% contracts on dwelling and small commercial losses. Caveat emptor...let the buyer beware. Just be aware that if the PA plunks down a contract in front of you with a blank space where the fee percentage is supposed to be, DON'T SIGN IT!! Negotiate the fee you're willing to pay BEFORE signing the contract. Then let your attorney review it before you sign.
Some state's Department of Insurance regulations cover Public Adjuster fees, and the maximum amounts they can charge for their services. I don't think that's any of the State's business. For the most part, states do not regulate the fees that independent adjusters charge the insurance companies. Why regulate PA fees? I believe that the policy holder and the PA should be able to set whatever fee they can agree upon.
Regardless of my opinion, you need to check with your state's Department of Insurance for this information if you're considering hiring a PA.
You've heard of personal injury attorneys being called "ambulance chasers?" Well, sometimes PAs have to be "fire truck chasers." It is quite normal for PAs to listen in to fire and police scanners and follow the fire trucks out to the location of the fire. It is quite normal for PAs to go door to door in a tornado or hurricane damaged area and solicit business. There is nothing wrong with this, since it may be the only way to contact victims after a fire or windstorm. That being said, the PA should always be professional, respecting your time and your personal situation.
A professional public adjuster can offer valuable assistance in the preparation of your claim, or even represent you in the presentation of the claim. Hiring a PA early in the claim process can help control the situation and quickly begin the recovery process. The PA can control over-zealous restoration contractors and pushy adjusters. The PA can accelerate and smooth the claim process by walking through the loss with the insurance company's adjuster so they agree on the scope of the loss. This one process can make a huge difference in how quickly your claim is settled, and many times, prevent disputes later on. You may decide that, in your situation, it makes sense to hire a PA in the first 24 hours after your loss.
If you wish to consider hiring a public adjuster, you should treat them just like you treat the adjuster and contractor. Call two or three public adjusters. Meet them, go over the details of your claim, and listen to their proposal of how they are going to represent you.
Get referrals of satisfied customers with phone numbers that you can call and verify. Then, spend the time checking them out. Call the Better Business Bureau about them. Find out if they have a good reputation.
Once you've checked them out, and if you want to retain a PA, hire the one who checks out best.
Remember what I told you in Chapter Six, "Should I Get a Lawyer?" Don't sign anything without having your attorney review the document FIRST. But, having said that, remember that there may be many things that need immediate attention, like contents removal, emergency board-up, and temporary family accommodations. This means that you should get your PA contract in front of your attorney immediately!
If you've hired a Public Adjuster, you should treat him just the same as the insurance company adjuster. See Chapter Four, Don't Be In A Hurry, with regard to writing down everything you discuss with him. Keep an accurate record of the date and time of all of your conversations, and what was discussed. Record the conversations if possible.
Insist that the PA give you copies of every document he generates on your behalf. Insist on copies of all letters and correspondences between the PA and the adjuster or insurance company.
Your PA will likely have you sign an assignment form, in which you agree to have the PA's name placed on the settlement checks along with yours.
There are only six states in the USA that require the PA to be included as a payee on an insurance company settlement check: Pennsylvania, New York, Virginia, Wyoming, Illinois and Kentucky. That means that if the insurance company doesn't want to be cooperative and place the PA's name on the check, they might not be cooperative unless the law requires them to do so.
In summary, the Public Adjuster will do most of the things for you that are found in this book regarding proper documentation and submission of your claim.
REMEMBER THIS IMPORTANT POINT!!
You can do all of the things that a Public Adjuster does on your behalf if you'll follow the steps I've written in this book. This will require a lot of work on your part. If you follow my recommendations, you will assuredly collect hundreds or even thousands more dollars in your claim settlement. However, in my opinion, you will collect even more money from your insurance company when you use the services of a Public Adjuster.
For those of you who do not want to expend the effort to handle your own claim from start to finish, and are willing to pay someone to do these tasks for you, then a professional Public Adjuster will perform a tremendous service for you.
Finally, I recommend that you check out the National Association of Public Insurance Adjusters (www.napia.com) for a listing of accredited public adjusting firms in your state. At the website, you'll find helpful links, articles of interest, and information on how individual public adjusters are licensed and accredited through the organization.
Now, I'd like to offer you two special reports at no cost. One is "5 Things To Do When Shopping For Car Insurance," and the other is "5 Things To Avoid When Shopping For Car Insurance." Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.
P.S. WARNING!! Do Not Buy Insurance, or Submit an Insurance Claim Without Visiting This Website!
check out: http://www.insurance-claim-secrets.com
My Book is NUMBER ONE at Amazon.com in its category! Buy it Today!
Nominated for Georgia Author of the Year Award 2008
Finalist, USA Book News "Best Book Awards 2008"
My blog is at: http://insurance-claim-secrets.blogspot.com
Call a Public Adjuster to evaluate your claim!
A public adjuster (PA) is an adjuster that assists an insured who has had a loss in the preparation and presentation of the insurance claim. PAs perform very valuable services to the insured by consulting with the insured on options available in their recovery, filling out forms, helping prepare inventory lists, preparing estimates on structural damages, helping to find you a temporary place to live if you're home is too damaged to live in, assisting in negotiations for settlement...and many more vital functions.
Public Adjusters work only on losses that involve property, such as homes, businesses and public buildings. Those are called "first party property claims."
If you have a loss to your property that was caused by someone else, that is called a "third party property claim." An example is when a vehicle runs into a dwelling, causing damage. In some situations, PAs will accept clients for third party losses. However, PAs cannot directly negotiate a third part claim. They can either advise the client as to the extent and value of the third party loss, or work with an attorney in presenting the claim.
Public Adjusters do not handle Bodily Injury (Casualty) losses, such as happen in an automobile accident. For assistance in those kinds of losses, consult a personal injury attorney.
There's an easy way to understand the function of a Public Adjuster. Compare them to an attorney in a lawsuit, or a Certified Public Accountant or tax preparer when filing your tax forms with the Internal Revenue Service.
Let me ask you some questions:
If someone filed suit against you, would you represent yourself in court? Or, would you just call the plaintiff and say, "You've already got a lawyer. Why don't we just use yours?" Neither choice protects you, does it?
Would you allow the IRS to prepare your tax return for you? If you did, would you expect the IRS to do its best to find every tax deduction for you so that you paid the least tax or got the biggest refund?
Do you file your own tax returns, or do you hire a tax preparation professional to prepare your tax return on your behalf?
Do you hire a tax professional because:
1. You don't have time to do it yourself?
2. The IRS has written a tax code that is too complicated for a normal person to understand?
3. You usually get a larger refund, or smaller tax liability, when you use a professional...because the professional finds more deductions for you?
4. The fee you pay is usually far less than the additional money you save?
OK then...you've just found comparable reasons to use Public Adjusters.
1. You need your own experts to help you file your claim.
2. Policies are written by the insurance companies and are usually complicated and hard to understand. These policies are known as "contracts of adhesion," because they inherently benefit the author of the contract, the insurance companies.
3. Many people are not willing to take the time to learn about their policies and learn the claims process.
4. Some people are too busy with work, and family, and life, to handle their own claim...especially in the turmoil immediately after a significantly large claim.
5. Public Adjusters usually help the policyholder collect hundreds or even thousands more dollars when the policyholder submits a claim. Their fees are a very small percentage of the amount of the settlement.
PAs usually have to be licensed adjusters, and are usually regulated by the Insurance Department of your state. Some states have special licenses for Public Adjusters. Call your state's Insurance Department office to find out more information about what Public Adjusters can do in your state. You'll find contact information for the Insurance Commissioners for all US states in the Appendix of the book.
Many of the people on the insurance company side take it very personally when a policyholder hires a public adjuster. Many truly believe that the policyholder should just trust the insurance company and adjuster to do the right thing, and not ever question them.
Adjusters and insurance company personnel sometimes play games with their own policyholders when the insured hires a PA. I've heard claims examiners refuse to speak with the insured by phone, telling the insured that, now that they are represented, all conversations have to go through the PA.
However, there's nothing in your policy that states that. Public Adjusters are not attorneys, and the attorney/client relationship is not the same as the relationship between an insured and a Public Adjuster. If your adjuster or insurance company examiner tries to pull that stunt, he's just doing it to delay and cause you problems. Call his supervisor or call the Department of Insurance.
Isn't this amazing? The insurance company writes the policy, makes the rules hard to understand, and then gets mad at you when you hire someone to help you submit a claim. This would be like the Internal Revenue Service getting mad at you because you hired an accountant to help you prepare your tax return.
But it still happens, even though it makes no sense.
The environment is changing, though. Following the hurricane seasons of 2004 and 2005, a newfound respect has grown within the insurance community regarding the value and professionalism of an accredited, licensed Public Adjuster.
Why do you think that the insurance companies and adjusters are not happy when you hire Public Adjusters? There's one big reason. Usually, when a PA is involved, the dollar amount of the claim is higher than a claim without a PA.
When I first got into the claims adjusting field, the "old timers" told me horror stories about public adjuster. They told me how crooked they were, and how they grossly inflated the repair or replacement costs in claims. They told me stories of how PAs were liars and cheats and totally dishonest.
Yet, in my experience dealing with PAs in claims, from homeowner losses to large apartment building fires, to commercial and business losses, I have not met one public adjuster that I didn't like as a person. I have not met a public adjuster who acted in an unprofessional manner. I have not met a public adjuster who wasn't trying his best to make sure that his client...the policyholder who had a loss...got every dollar that was owed to them by the insurance company.
Public adjusters usually represent a client on a contingency basis. That simply means that they help present the claim documents to the insurance company and receive a percentage of the total amount of the insurance proceeds. The average percentage nationwide is 10%. The major incentive that makes the PA work hard is to help the insured get a larger settlement from the insurance company than the insured could have gotten by himself.
The PA is motivated to maximize your claim and expedite the claim adjustment process. It is a balance of making sure that the claim is packaged as completely as possible so you collect every dollar you are entitled to collect without creating unnecessary disputes with the insurance carrier. The PA does not charge for his services until after the claim is paid to you, so they are motivated to get it settled as quickly as possible. Their fee is usually all inclusive, with no additional out-of-pocket expenses. Most established Public adjusting firms can show you how their fee is absorbed in the adjustment process.
You should know that fees are negotiable with PAs. I've seen PA firms agree to substantial discounts from their standard 10% fee on huge commercial losses, and I regularly see 10% contracts on dwelling and small commercial losses. Caveat emptor...let the buyer beware. Just be aware that if the PA plunks down a contract in front of you with a blank space where the fee percentage is supposed to be, DON'T SIGN IT!! Negotiate the fee you're willing to pay BEFORE signing the contract. Then let your attorney review it before you sign.
Some state's Department of Insurance regulations cover Public Adjuster fees, and the maximum amounts they can charge for their services. I don't think that's any of the State's business. For the most part, states do not regulate the fees that independent adjusters charge the insurance companies. Why regulate PA fees? I believe that the policy holder and the PA should be able to set whatever fee they can agree upon.
Regardless of my opinion, you need to check with your state's Department of Insurance for this information if you're considering hiring a PA.
You've heard of personal injury attorneys being called "ambulance chasers?" Well, sometimes PAs have to be "fire truck chasers." It is quite normal for PAs to listen in to fire and police scanners and follow the fire trucks out to the location of the fire. It is quite normal for PAs to go door to door in a tornado or hurricane damaged area and solicit business. There is nothing wrong with this, since it may be the only way to contact victims after a fire or windstorm. That being said, the PA should always be professional, respecting your time and your personal situation.
A professional public adjuster can offer valuable assistance in the preparation of your claim, or even represent you in the presentation of the claim. Hiring a PA early in the claim process can help control the situation and quickly begin the recovery process. The PA can control over-zealous restoration contractors and pushy adjusters. The PA can accelerate and smooth the claim process by walking through the loss with the insurance company's adjuster so they agree on the scope of the loss. This one process can make a huge difference in how quickly your claim is settled, and many times, prevent disputes later on. You may decide that, in your situation, it makes sense to hire a PA in the first 24 hours after your loss.
If you wish to consider hiring a public adjuster, you should treat them just like you treat the adjuster and contractor. Call two or three public adjusters. Meet them, go over the details of your claim, and listen to their proposal of how they are going to represent you.
Get referrals of satisfied customers with phone numbers that you can call and verify. Then, spend the time checking them out. Call the Better Business Bureau about them. Find out if they have a good reputation.
Once you've checked them out, and if you want to retain a PA, hire the one who checks out best.
Remember what I told you in Chapter Six, "Should I Get a Lawyer?" Don't sign anything without having your attorney review the document FIRST. But, having said that, remember that there may be many things that need immediate attention, like contents removal, emergency board-up, and temporary family accommodations. This means that you should get your PA contract in front of your attorney immediately!
If you've hired a Public Adjuster, you should treat him just the same as the insurance company adjuster. See Chapter Four, Don't Be In A Hurry, with regard to writing down everything you discuss with him. Keep an accurate record of the date and time of all of your conversations, and what was discussed. Record the conversations if possible.
Insist that the PA give you copies of every document he generates on your behalf. Insist on copies of all letters and correspondences between the PA and the adjuster or insurance company.
Your PA will likely have you sign an assignment form, in which you agree to have the PA's name placed on the settlement checks along with yours.
There are only six states in the USA that require the PA to be included as a payee on an insurance company settlement check: Pennsylvania, New York, Virginia, Wyoming, Illinois and Kentucky. That means that if the insurance company doesn't want to be cooperative and place the PA's name on the check, they might not be cooperative unless the law requires them to do so.
In summary, the Public Adjuster will do most of the things for you that are found in this book regarding proper documentation and submission of your claim.
REMEMBER THIS IMPORTANT POINT!!
You can do all of the things that a Public Adjuster does on your behalf if you'll follow the steps I've written in this book. This will require a lot of work on your part. If you follow my recommendations, you will assuredly collect hundreds or even thousands more dollars in your claim settlement. However, in my opinion, you will collect even more money from your insurance company when you use the services of a Public Adjuster.
For those of you who do not want to expend the effort to handle your own claim from start to finish, and are willing to pay someone to do these tasks for you, then a professional Public Adjuster will perform a tremendous service for you.
Finally, I recommend that you check out the National Association of Public Insurance Adjusters (www.napia.com) for a listing of accredited public adjusting firms in your state. At the website, you'll find helpful links, articles of interest, and information on how individual public adjusters are licensed and accredited through the organization.
Now, I'd like to offer you two special reports at no cost. One is "5 Things To Do When Shopping For Car Insurance," and the other is "5 Things To Avoid When Shopping For Car Insurance." Each one is a $9.95 value, but free to you when you sign up for my newsletter at the website address below.
P.S. WARNING!! Do Not Buy Insurance, or Submit an Insurance Claim Without Visiting This Website!
check out: http://www.insurance-claim-secrets.com
My Book is NUMBER ONE at Amazon.com in its category! Buy it Today!
Nominated for Georgia Author of the Year Award 2008
Finalist, USA Book News "Best Book Awards 2008"
My blog is at: http://insurance-claim-secrets.blogspot.com
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