A Public Adjuster represents the policyholder and their interests, the adjuster that is sent by the insurance company is representing that company and its interests – not the policyholder’s. These adjusters can be company adjusters or “independent” adjusters but they both serve the insurance company. So, public adjusters represent the public, while both company and independent adjusters represent the companies that hire them.

Many times, policyholders are unaware or forget about provisions in their policy that outline their responsibilities after a loss – like immediately documenting the loss, reporting the claim in a timely manner, providing an estimate to the insurance company, submitting requested claim documentation within deadlines, etc. Public Adjusters handle insurance claims and read policies every day and so will be better prepared to handle your claim on your behalf.

Public Adjusters are licensed experts in reading policies and negotiating with insurance companies. If you file the claim and handle it yourself, your success in getting the money you need to make the necessary repairs will depend on how well you can do the job of a public adjuster. In fact, a public adjuster can get their clients more money because of their experience – about 99% of the time, by hiring a public adjuster, you will end up with 50% to 500% more.

No, and the difference is in what Public Adjusters are licensed to do versus a contractor. Only two categories of professionals are legally allowed to negotiate claims, discuss and review policies, and handle all the other parts of the insurance claim process – public adjusters and attorneys. A contractor or a roofer is only licensed to perform the service that they provide and also provide an estimate for repairs. A roofer is licensed to handle roofs, a plumber is licensed to handle plumbing, and so on. A contractor or roofer cannot deal with coverage or additional living expenses, they cannot file disputes, etc.

Public adjusters and attorneys have similar legal authorization regarding insurance claims. However, the difference is in their role in the process. You can consider public adjusters the first line of defense. They are there from the beginning, documenting the claim, putting the estimate together, presenting the claim, following up, and generally being with you through the entire process. If a public adjuster is unable to get an insurance company to pay the claim, then there are times to use an attorney, as many public adjusters will do. Yet, the main practical difference between a public adjuster and an attorney is the length of time it takes to settle a claim – if it gets to litigations, with attorneys the process can last between a year and two; with a public adjuster, the process to settle a claim takes between 1 to 4 months.

The cost of hiring a public adjuster differs from state to state. Some states have limitations while others do not. More importantly, public adjusters are usually not paid a flat fee but work on contingency. For example, the fee to hire a public adjuster in Florida is up to 20% of the claim. If a natural disaster happens, the fee is limited to 10%. In Texas, the fee is 10% of the entire value of the claim. This also means that public adjusters are financially motivated to get you as much money as possible and expediently complete the claims process.

A claim represented by a public adjuster usually takes between 1 to 3 or 4 months to settle. Insurance companies have a set amount of time to investigate a claim, typically 90 days. The public adjuster’s role is to expedite the process. If a public adjuster cannot settle your claim within that time period, then the assistance of an attorney may be required.

We do not want to mislead you, the fact is that the more frequent and the more number of claims that you file under a given policy period, the higher the likelihood of your premium going up or your insurance company even dropping you. However, an insurance company can raise your premium and even drop you even if you never file a claim – it happens all of the time. In the next FAQ, we’ll talk about what factors insurance companies really look at in determining premiums.