Category: insurance claims

We often are asked, “Exactly what do Pubic Adjusters do, and why should I hire one?” Here is an overview of the industry, how it is beneficial, and what to look for when you experience your next insurance claim.

Welcome to the field of Public Adjusting! It’s a specialized area within the insurance industry that can be quite rewarding but also complex. Here’s a detailed introduction to get you started:

Basic Concepts

1. What is a Public Adjuster?
   • A Public Adjuster is a licensed professional who advocates for policyholders (i.e., you) in the process of filing and negotiating insurance claims. Unlike insurance company adjusters who work on behalf of the insurance company, Public Adjusters work for the policyholder and aim to maximize the claim settlement on their behalf.
2. Role and Responsibilities:
   • Assessment: Evaluate the damage to property or loss and decide the extent of the insurance claim.
   • Documentation: Gather and organize all necessary documentation and evidence to support the claim, including photos, estimates, and repair records.
   • Negotiation: Negotiate with the insurance company to ensure the claim is settled fairly and that the policyholder receives the maximum amount possible.
   • Settlement: Assist in the settlement process, ensuring that all aspects of the policy are considered and that the settlement aligns with the policyholder’s needs.
3. How it Differs from Insurance Adjusters:
   • Insurance Company Adjusters: Work for the insurance company and aim to minimize the payout.
   • Public Adjusters: Work for the policyholder and aim to maximize the claim payout.

Key Components

1. Licensing and Regulation:
   • Public Adjusters are mandated to be licensed in the states where they operate. Licensing requirements typically include passing an exam, meeting experience or education requirements, and continuing education.
2. Types of Claims Handled:
   • Property Claims: Damage to homes, commercial buildings, or personal property (e.g., from fire, water, wind, or theft).
   • Business Interruption Claims: Losses incurred by businesses due to interruptions, such as those caused by natural disasters.
3. Fees and Compensation:
   • Public Adjusters typically work on a contingency fee basis, meaning they only get paid if the claim is settled. Their fee is usually a percentage of the settlement amount (often between 10% and 25%).
4. Insurance Policies:
   • Understanding the nuances of different insurance policies, such as homeowners, commercial property, and business interruption policies, is crucial. Each policy has specific terms, coverage limits, and exclusions.

Common Uses and Applications

1. Residential Claims:
   • Homeowners often use Public Adjusters for claims involving damage from fires, storms, or floods. The complexity of these claims can benefit from a Public Adjuster’s expertise.
2. Commercial Claims:
   • Businesses may require Public Adjusters for large-scale property damage or business interruption claims. Given the potential scale of losses, having an expert can be vital in ensuring fair compensation.
3. Natural Disasters:
   • In the wake of natural disasters like hurricanes, earthquakes, or wildfires, Public Adjusters can help manage the large volume of claims and ensure that policyholders receive fair settlements.
4. Complex or High-Value Claims:
   • Claims involving high-value property or complex damage situations (e.g., extensive water damage or long-term mold issues) often benefit from the detailed attention of a Public Adjuster.

Benefits of Hiring a Public Adjuster

1. Expertise and Experience:
   • Public Adjusters bring specialized knowledge and experience to the table, which can be particularly valuable when dealing with complicated claims.
2. Time-Saving:
   • Managing an insurance claim can be time-consuming. A Public Adjuster handles the details, allowing policyholders to focus on other priorities.
3. Advocacy:
   • They advocate on behalf of the policyholder, working to ensure that all damages are properly assessed and that the claim is settled fairly.
4. Maximized Settlements:
   • Studies have shown that policyholders who hire Public Adjusters often receive higher settlements compared to those who handle claims on their own.

Conclusion

Public Adjusting is a vital field within the insurance industry, offering significant benefits to policyholders by providing expert assistance in navigating and maximizing insurance claims.

If you have more specific questions or need further details on any aspect of Public Adjusting, feel free to ask! We at AJR Public Adjusters are always available to answer questions and provide additonal information about our services and experience.