What is a Public Adjuster and Should You Hire One?
Whether you already know or are new to knowing what a public adjuster is, that’s ok. Until you’ve had to work with one, many don’t know why they should hire a public insurance adjuster.
When a disaster or accident happens, dealing with an insurance claim is a complex and overwhelming process. This blog post will educate policyholders on everything they need to know from the basic question “what is a public adjuster?” to what they do, why you should hire them and what to look for when hiring one. Knowing all of this will bring you confidence and preparation when disaster strikes.
What is a public adjuster?
A common question asked is “What is a public adjuster?”
The Insurance Information Institute defines a public insurance adjuster as “an independent insurance professional that a policyholder may hire to help settle an insurance claim on his or her behalf.”
Accompanying the question “what is a public adjuster?” there are other frequently asked questions when individuals learn there are three types of adjusters. Knowing each one can help you better understand what a public adjuster is and does.
Company or claims adjuster
The insurance company hired a company or claims adjuster. A company adjuster’s primary role is to investigate and assess claims to determine what the insurance company payout is, based on policy terms. Working directly for the insurance company, their interests are often biased to minimize the payout to the policyholder and protect the financial interests of the insurance company.
Independent adjuster
The insurance company can also hire an independent adjuster to review the loss and report back to the insurance company. This adjuster will assess the damage and their report will determine the settlement the policyholder receives.
The independent adjuster is not an independent actor as their name may imply. The insurance company hires and pays independent adjusters to represent their interests. Multiple insurance companies can hire the same insurance adjuster. While they are not employees of the insurance company, the insurer pays them and their goal remains the same: to minimize the payout to the policyholder in order to protect the insurance company’s bottom line.
Public insurance adjuster
A public insurance adjuster works exclusively for you — the policyholder. The key word is public. They represent you as they assess and help process your claim with the insurance company. Their interest is to ensure you receive the full benefits outlined in your policy.
While insurance companies hire adjusters at no cost to you, a public adjuster has no relationship with your insurance company. What a public adjuster will do instead is charge a fee up to 15 percent of the insurance settlement for their services.
What does a public adjuster do?
According to the U.S. Bureau of Labor Statistics, public adjusters have many duties.
- Investigate, evaluate, and settle insurance claims
- Determine whether the insurance policy covers the loss claimed
- Decide the appropriate amount the insurance company should pay
- Ensure that claims are not fraudulent
- Contact claimants’ doctors or employers to get additional information on questionable claims
- Talk with legal counsel about claims when needed
- Negotiate settlements
- Authorize payments
Within these duties, there is a simple six-step process they take in order to help you get the maximum settlement.
- Policy review: A public insurance adjuster begins by thoroughly reviewing the insurance policy to understand the coverage, limitations, and exclusions. This helps them determine the full extent of your entitled benefits.
- Damage assessment: Public adjusters conduct a detailed inspection of the property to assess the damage. They may work with other experts, such as engineers or contractors, to ensure that all damages are accurately documented.
- Claim preparation: When the public adjuster assesses the damage, they prepare a comprehensive claim that includes documentation such as photographs, repair estimates, and reports from experts. They will submit the claim to your insurance company.
- Negotiation: One of the most critical roles of a public insurance adjuster is to negotiate with the insurance company on your behalf. Their knowledge of the policy and the damage assessment is pivotal in getting a fair settlement. Public adjusters are negotiators who understand the tactics that insurance companies use to reduce payouts and can counter effectively.
- Settlement: The ultimate goal of a public adjuster is to secure a fair and full settlement. They negotiate until they believe the offer is satisfactory and in line with the terms of your policy.
- Appeals: If the insurance company denies the claim or offers an unsatisfactory settlement, a public insurance adjuster can help file an appeal. They will gather additional evidence, if necessary, and continue to advocate on your behalf.
How to know if you need a public adjuster
While public adjusters can be beneficial in many situations, they may not be necessary for every claim. Here are some scenarios where hiring a public adjuster might be the right decision.
Large or complex claims
If your claim involves significant damage or is particularly complex, a public insurance adjuster can ensure all aspects of the loss are properly documented and receive the full benefits of your policy.
Denied or disputed claims
If the insurance company has denied your claim or offered a settlement that you believe is too low, a public adjuster can help you contest the decision and fight for a fair payout.
Underpayment concerns
If you suspect that the insurance company’s estimate is lower than what you need to fully repair the damage, a public adjuster can provide a second opinion and work to increase the settlement.
Lack of time or knowledge
If you don’t have the time or expertise to handle the claims process yourself, a public insurance adjuster can take over the task. They will handle it professionally and efficiently.
Emotional stress
After a loss, you may be dealing with emotional trauma or other challenges that make it difficult to focus on the claims process. A public adjuster can relieve this burden by managing the claim for you.
Why should you hire a public adjuster?
Hiring a public insurance adjuster offers many advantages. Some implicitly mentioned above, but there are many more to review. Public adjusters handle claims from water, fire and other damages to navigating accidental damage claims. Their assistance in your experience can be beneficial considering one in 18 insurance homes has a claim each year.
Expertise and knowledge
Public adjusters have a deep understanding of insurance policies and the claims process. They can interpret complex policy language. You might overlook entitled benefits in your policy if handling the claim on your own. A public adjuster will identify them for you.
Maximizing settlements
Studies have shown that policyholders who hire public adjusters receive higher settlements than those who do not. This is because public adjusters know how to present a claim in a way that maximizes the payout and can effectively counter lowball offers from the insurance company. The ultimate goal in any claim is to maximize the settlement.
Time saving
Handling an insurance claim can be time-consuming and stressful. A public insurance adjuster takes over the entire process from assessing the damage to negotiating with the insurance company. Then, you can focus on recovering from the loss rather than dealing with the complexities of the claims process.
Leveling the playing field against Insurance companies
Insurance companies have teams of adjusters and lawyers working to protect their interests. By hiring a public adjuster, you level the playing field and ensure that you have a knowledgeable advocate fighting for your rights.
Reduced stress
Dealing with the aftermath of a disaster is stressful enough without having to navigate the claims process. A public insurance adjuster can handle all aspects of your claim, reducing your stress and giving you peace of mind that your case is in good hands.
What to look for in a public adjuster
Even with the advocacy of a public insurance adjuster on your side, make sure to vet companies and people so that you like who you work with.
Verify a public adjuster’s license in your state. Validate a solid reputation. Being trustworthy and honest are critical qualities you need. Check references and qualifications in order to understand their background and expertise. Ask references from past clients and check online reviews to confirm a successful history with claims and satisfied customers.
Be cautious of public insurance adjusters that pressure you to sign contracts or make unrealistic promises. Again, their goal should be supportive and realistic to honestly and fairly bring you a good estimate and settlement. A reputable public adjuster will provide clear information that allows you to make informed decisions.
Even though you are hiring a public insurance adjuster for their knowledge, it can be helpful to understand enough of the process that you know your adjuster is well-versed in handling claims following disaster. Knowing challenges disaster presents and how to navigate them will add to your confidence.
Have Hudson Douglas Public Adjusters help you
No matter if you need a public insurance adjuster now or if you are building your network to prepare, Hudson Douglas Public Adjusters are here to help. With personalized service and years of experience, their track record of success and their loyalty to you will help you achieve the highest payout for your claims and recovery from disaster with less stress.
Contact Hudson Douglas Public Adjusters and start your insurance claim journey today.
