What’s the Difference Between an Independent and a Public Adjuster?
When natural disasters strike, there is often a lot of confusion about what to do next. Many people struggle with the correct terminology and the differences between the roles involved. The independent and public adjuster industry plays a major role in the insurance claim process after a natural disaster and everyday property damages such a water damages due to a pipe leak for example.
These professionals help simplify the claim process and get homeowners back into their homes as quickly as possible. Here are some key differences between independent and public claim agents, how they operate during natural disasters and how to find an adjuster.
Who is a Public Adjuster?
A public adjuster is a professional who acts on behalf of clients impacted by a natural disaster or other catastrophic events. Public claim agents are also sometimes referred to as catastrophe adjusters.
Public claim agents will help you navigate the claims process with your insurance company, advocate for you, and attempt to recover any money you may be entitled to from your insurance company.
Who is an Independent Adjuster?
An independent adjuster is an insurance agent a policyholder hires after a claim has been submitted to help speed up the process. These agents are contracted by the insurance company rather than by the policyholder.
They are trained to evaluate the damage and determine the appropriate coverage for policyholders. After assessing the property damage, the adjuster will issue a report to the insurance company and a settlement offer to the policyholder. Once a policyholder has obtained a settlement, they can then begin repairs and make any necessary modifications to their property.
Role of an Independent Adjuster
When a natural disaster or accident occurs, it can take weeks or even months before your insurance company gets around to assessing the damage and settling your claim. During this time, you are responsible for covering all costs associated with repairs. Preserving and protecting your home or business from further damages is critical to prevent your claim from being denied.
The Independent Adjuster is hired by your insurance company to inspect the damages and estimate the cost of the repairs based on your policy and their guidelines. For more reviews on your adjuster visit www.reviewyouradjuster.com.
Assess Damage and Determine Coverage
All insurance policies will have a section on what is and isn’t covered. When you file a claim, you must provide proof of the damage for each section of your policy related to the incident.
An independent adjuster will also ask you questions about the damages and how they happened. Also, it’s not uncommon for them to take a recorded statement. A lot of times your independent adjuster can’t determine coverage based on their role within the insurance company. It just might be outside of the job description and they are only there to investigate and report back to their desk adjuster. It’s not a good feeling when the adjuster is asking all the questions, taking pictures and telling you they can’t answer your questions.
Identify Fraudulent Claims
Fraudulent claims are a significant problem in the insurance sector and can increase the cost of premiums for all policyholders. An independent adjuster has the training to identify red flags that may indicate a fraudulent claim. They will seek witnesses and gather evidence to help determine the value of each claim.
Help You Understand Your Policy
Often, policyholders don’t understand the language used in their insurance policy. An independent adjuster can help you understand what is and isn’t covered by your policy sometimes. They will take the time to explain each section of your policy and answer any questions you may have related to your coverage. If they can’t or don’t have the authority you can also discuss your policy with your insurance agent or your customer service representative at your insurance company. If you feel your not getting clear answers or you feel something isn’t adding up, then consider consulting with a public adjuster or attorney. Also, keep in mind restoration contractors have a lot of experience with the claim process and they could at least give you some advice what they normally experience themselves.
Role of a Public Adjuster
Helping with a Denied Insurance Claim
When an insurance company denies a claim, it is standard procedure for an adjuster to investigate and conclude why they feel the claim should not be paid. However, rather than take the adjuster’s word for it and attempt to appeal the decision, a public claim agent will investigate the situation for you and negotiate with the insurance company.
The public adjuster will use various techniques to help you recover from the insurance company, including the following:
- Reviewing the policy and claims adjuster notes
- Retrieving property documentation
- Getting statements from witnesses or people who can attest to the damage
- Recommending a good Restoration Company to assist with actual repair cost that’s not always current in standard cost estimating software for example Xactimate.
- Consulting with engineers or other experts to help determine the damage amount
- Reviewing the insurance company’s decision-making process and any applicable case law
- Negotiating with the insurance company and attempting to get them to change their decision
Helping with an Under Paid Claims
If your insurance company has paid you far less than you think you should have received, a public adjuster can help you in similar ways to recovering from a denied claim. Public adjusters will attempt to use the same techniques that are used in helping with a denied claim, but rather than trying to get the insurance company to pay you less money; they will be trying to get the company to pay you more. Its very important to work with a restoration company in tandem with your public adjuster because standard cost estimating software, such has Xactimate, cost are determined primarily by compiling cost based on adjuster estimate since approx. 90% of the cost software is used by adjusters and not contractors. Cost software the most adjuster use is based on average cost and since most cost is determined by adjuster’s estimate so it is inherent that the cost is below your market repair cost.
Finding Lost Money and Assets
A public adjuster can also help you recover lost money and assets that the insurance company may not have accounted for, such as certain types of income that you have lost because of the damage, lost rental income for the property, or money for hotel stays if you were displaced from your home. In some cases, the insurance company may be legally obligated to pay you these amounts, but they may not be aware of their obligations.
Rebuilding Your Home and Repaying Your Loan
If you have taken out a loan from the government or a private lending source to rebuild your home or repair damage from a catastrophe, you may be eligible to have this loan forgiven if you cannot repay it. Public adjusters can help you navigate the process of applying for loan forgiveness or other types of relief available.
Even if you have received enough money from your insurance company to repay the loan in full, public adjusters can help you navigate the process of applying for loan forgiveness. They can help you gather the necessary documentation and provide the information the lender needs to decide between forgiving your loan.
Key Differences Between Independent and Public Adjusters
Independent adjusters are hired by the insurance company and are responsible for investigating claims and determining if the company should pay out. In contrast, public adjuster are hired by policyholders and help them navigate the claims process.
An independent adjuster must be biased and only investigate the facts of a claim determined by their guidelines. Public adjuster can negotiate on behalf of a policyholder, but they are not required to be unbiased. Some states requires both the independent and public adjuster to be licensed. You can look up your adjuster on your states website or www.reviewyouradjuster.com website.
Tips for Hiring a Public Adjuster
Interview Potential Adjusters
It’s important to interview the candidates thoroughly and carefully. This will help rate your adjuster according to their skills, experience, and approach to your situation. Also, ask the right questions that will help you better understand the candidate’s qualities and qualifications. You might be prior customer reviews on www.reviewyouradjuster.com website.
Consider the Costs
The adjuster will likely charge you a percentage of the total award you receive after your claim is settled. Therefore, it’s crucial to understand exactly how much the adjuster will be taking from your settlement. Two types of adjusting methods are commonly used: the percentage of the settlement method and the fixed fee method.
The percentage of the settlement method charges you a percentage of the total settlement awarded to you by the insurance company. The fixed fee method charges you a set amount for the adjuster’s services regardless of the final amount awarded. Also, after a catastrophe like a Hurricane the public adjuster fees are reduced to no more then 10%.
Make the Decision
Before hiring an adjuster, you should carefully consider what your needs are. For example, you should consider the scale of the damage, as this can impact the adjuster you hire. Think about how quickly you need the public adjuster to begin working.
Regardless of the type of adjuster you hire, you should always clearly understand what the adjuster can do for you and your business. You should also know what you expect the adjuster to provide.
Create a Contract With Your Selections
Therefore, before you sign a contract with an adjuster, ensure you are getting everything in writing, including the details of how they will approach your situation. Ensure you have a written contract with your selected adjuster that includes the following:
- The name of the adjuster who is working with you
- The details of the claim for which they’re responsible
- The estimated timeline for the conclusion of the claim
- Their commission
- How they will handle subcontractors
- The details of how you will be charged for their services
- Any restrictions or limitations they will have on the claim
Check for Conflicts of Interest
Choose an adjuster with no conflicts of interest that could affect their ability to do a thorough and accurate job. Here are some common types of conflicts to keep an eye out for.
- You can’t work with an adjuster who represents the insurance company that you are claiming against.
- You can’t work with an adjuster who represents your insurance company.
- You can’t work with an adjuster who employed you.
- You can’t work with an adjuster who is a family member.
- There is no rule against working with an adjuster who is a friend.
Ask for Independent Reviewers and Auditors
Hiring independent reviewers and auditors will help to review your adjuster and ensure they are thorough and impartial. The independent auditors can help to review the adjuster’s calculations for accuracy.
While it’s essential to ask for independent reviewers and auditors, not all adjusters will hire them. Therefore, it’s important to ask for them when interviewing the adjusters. Adjusters who are confident in their abilities will likely have no problem agreeing to have independent auditors review their work.
Alternatively, check insurance adjuster reviews websites to find out if the adjusters you are considering hiring have been reviewed. If they have, you can read the reviews to see how customers felt about working with them.
Reviews are usually pretty accurate, so if an adjuster has received mostly negative reviews, they may not be the best choice for your claim. You can also report your adjuster on these websites if you have had a bad experience with them to let others know who they are dealing with.
Conclusion
If you are considering hiring an insurance claims adjuster, it’s important to know how to work with them. This can save you time and money in the long run. Interviewing adjusters, asking essential questions, and ensuring they are licensed will help you feel more comfortable with the person you choose to work with. This, in turn, will help you get back on your feet after a devastating disaster.