Public adjuster is an independent insurance claims professional who works on behalf of policyholders (homeowners, business owners, etc.) to help them file, negotiate, and settle insurance claims. Unlike insurance adjusters who work for the insurance company, public adjusters advocate for you, aiming to maximize your payout and ensure you receive the full compensation you are entitled to under your policy.

Key Roles and Responsibilities of a Public Adjuster

When you hire a public adjuster, they can handle various aspects of the insurance claims process, including:

  1. Assessing Damage:

    • Public adjusters thoroughly inspect and document property damage after incidents like fires, floods, hurricanes, or theft. They create a detailed inventory of losses and estimate the cost of repairs or replacements.

  2. Reviewing Your Insurance Policy:

    • They review the fine print in your insurance policy to determine what is covered, what exclusions may apply, and how to maximize your claim.

  3. Filing the Insurance Claim:

    • The adjuster will prepare and submit your claim to the insurance company, ensuring that all required documentation is included to avoid delays or denials.

  4. Negotiating with the Insurance Company:

    • Public adjusters negotiate directly with the insurance company’s adjusters to get you the best possible settlement. Their goal is to challenge any lowball offers and advocate for a fair payout.

  5. Resolving Disputes:

    • If there are disputes about the claim’s value, the public adjuster can provide additional evidence or request a reinspection to resolve disagreements.

When Should You Hire a Public Adjuster?

You may want to hire a public adjuster if:

  1. Your Claim Was Denied or Underpaid:

    • If your initial claim was denied or underpaid, a public adjuster can help you challenge the decision and negotiate a higher settlement.

  2. You’re Facing a Large or Complex Claim:

    • For large claims (e.g., after a fire, hurricane, or flood) or complex claims involving multiple types of damage, a public adjuster can handle the details and reduce your stress.

  3. You Don’t Have Time to Handle the Claim:

    • Filing an insurance claim can be time-consuming and overwhelming. A public adjuster can take over the process, allowing you to focus on other priorities.

  4. You Suspect the Insurance Company’s Offer Is Too Low:

    • If you feel the insurance company’s settlement offer doesn’t reflect the true cost of repairs or replacements, a public adjuster can conduct an independent assessment and negotiate for a higher payout.

Benefits of Hiring a Public Adjuster

  • Maximize Your Settlement:
    Public adjusters are skilled negotiators who know how to challenge low offers and ensure that all damages are properly accounted for.

  • Save Time and Reduce Stress:
    They handle the entire claims process, including paperwork, inspections, and negotiations, so you don’t have to.

  • Expert Knowledge of Insurance Policies:
    Public adjusters understand the complexities of insurance policies and can interpret policy language to your advantage.

  • Level the Playing Field:
    Insurance companies have their own adjusters to protect their financial interests. A public adjuster can level the playing field by advocating for your best interests.

How Public Adjusters Get Paid

Public adjusters typically charge a contingency fee, which means they only get paid if you receive a settlement. Their fee is usually a percentage of the final settlement amount (typically between 5% and 15%, depending on the size and complexity of the claim).

For large disasters declared by the government (e.g., hurricanes), some states may cap public adjuster fees to protect policyholders.

Tips for Hiring a Public Adjuster

If you decide to hire a public adjuster, follow these tips to find a reputable professional:

  1. Check Credentials:

    • Verify that the public adjuster is licensed in your state. Many states require public adjusters to be licensed and regulated by the Department of Insurance.

  2. Read Reviews and Ask for References:

    • Look for online reviews, testimonials, and references from past clients to gauge the adjuster’s reputation and track record.

  3. Understand the Fee Structure:

    • Make sure you understand how the adjuster’s fees will be calculated and what services are included.

  4. Ask About Experience:

    • Choose a public adjuster with experience handling claims similar to yours (e.g., fire damage, flood damage, or hurricane claims).

  5. Beware of Scams:

    • Be cautious of adjusters who approach you unsolicited after a disaster or ask for upfront fees. Legitimate public adjusters should never ask for payment before you receive a settlement.

Common Misconceptions About Public Adjusters

  • My Insurance Company’s Adjuster Is All I Need:
    While the insurance company’s adjuster assesses your damage, they work for the insurer, not for you. A public adjuster represents your interests and can help you get a better settlement.

  • Hiring a Public Adjuster Will Slow Down the Claims Process:
    On the contrary, public adjusters often speed up the process by ensuring that all necessary documentation is submitted correctly and promptly.

  • Public Adjusters Are Only for Large Claims:
    Public adjusters can handle claims of all sizes, from minor roof damage to total property loss.

Real-Life Example: How a Public Adjuster Can Help

Scenario:
After a hurricane damages your home, you file a claim with your insurance company. The insurance adjuster estimates the damage at $15,000, but independent contractors estimate the repair costs at $30,000.

Solution:
You hire a public adjuster, who conducts a detailed inspection, gathers additional evidence, and negotiates with the insurance company. As a result, the insurer agrees to pay $28,000—nearly double the original offer.

Conclusion

A public adjuster can be a valuable ally when dealing with an insurance claim, especially if your claim is denied, underpaid, or particularly complex. By advocating for your best interests, handling the paperwork, and negotiating with the insurance company, public adjusters can help maximize your payout and ensure that you get the compensation you deserve.