Public Adjuster Fees
It is not always necessary to hire a public claims adjuster to deal with your insurance claims, however if you are struggling to sort out the claims yourself then it is always a good idea to hire one and to understand how public adjuster fees are structured. Whether you simply don’t have the time to work through the time consuming pay out process, or if you feel that your insurance company has offered you less than what you are owed, then it is advisable to get the services of a public adjuster.
They will deal with every detail of your case; they will learn your policy scheme inside out, assess the damage to your property and negotiate the highest payout that is legally possible for your claim.
A public adjuster does not have any affiliation to the insurance company, and they are only there for your benefit. Therefore, you will be expected to pay for their services.
How Much Does a Public Adjuster Charge?
There are many different ways that a public adjuster can charge for their services. They could charge a flat rate, an hourly rate and contingent fees. You should always remember to settle a fee rate and way of payment with your public adjuster before you enter into any agreements. They should tell you upfront what their rate is and which method they use, this should also be added into any contract signed.
- Flat Rate: If you have a large claim, but it is a very simple case that has a very clear outcome, then your public adjuster may charge a flat fee for the entire process. It is important to ascertain what the fee covers and doesn’t cover, as you don’t want to be caught out by additional costs such as expert opinions and other expenses. This fee should be decided on before the contract is signed.
- Hourly Rate: This is not a common way for public adjusters to charge for their services, however there are some who do practice it. An hourly rate will depend on the state where you are situated, the public adjusters experience and expertise, their operating costs and the type of policy that your claim falls under. An experienced public claims adjuster should be able to tell you how many hours they will have to work on the claim.
- Contingent Fees: This is the most popular way for public adjusters to charge for their services. They will take no direct fee from you, but rather will get a percentage from the overall payout. The amount they charge varies on experience, as well as state regulations. For example public adjusters in Florida are not allowed to charge more than 20% of the final fee in a situation that isn’t declared a disaster, and not more than 10% if it has been declared a disaster. Most public adjusters will charge between 5 and 15%, and this can regress if the amount of money being paid to the claimant increases.
While a large majority of public adjusters are honest and competent at their work, it will still hold you in good stead to watch out for potential scams. Some people will ask for a deposit before they start work and then leave with your money, others may get dodgy contractors who they can pay less and therefore skim a bit of money off the top from.
Whenever you hire a public claims adjuster it is important that you ensure you are getting someone who is honest and proficient at his/her job. It is up to you to have a rigorous interview process, and that you sort out the matter of fees before you sign any contracts.