Public Adjuster Pros & Cons
Hiring a public adjuster is the right decision for some insurance claims – but not all.
When you hire a public adjuster, you’re paying a professional insurance industry expert to manage your claim, increase your payout, and expedite home repairs.
Keep reading to discover some of the pros and cons of hiring a public adjuster.
Pros Of Hiring A Public Adjuster
There are many advantages of hiring a public adjuster, including:
Get Experience and Knowledge On Your Side
You’re likely not an insurance claim expert – and that’s okay.
Unless you’ve had the misfortune of dealing with multiple serious insurance claims, you probably don’t have much insurance industry experience.
Unfortunately, your insurer does have experience and knowledge on their side. Your insurance company has processed thousands of similar claims – and they know how to limit your payout as much as legally possible.
When you hire a public adjuster, you’re getting experience and knowledge on your side. Many public adjusters have decades of industry experience. Some used to work for insurance companies before switching to the other side.
Increase Claim Payout
Public adjusters have the potential to increase your claim payout significantly.
Some public adjusters have overturned denied claims, for example, turning a $0 claim into a $2 million claim.
Others can double, triple, or quadruple your insurance company’s initial offer, raising your payout by thousands of dollars when needed most.
Although public adjusters do not guarantee higher claim payouts, they know how to maximize the value of your insurance claim using proven strategies, giving you the best possible chance of receiving additional compensation from your insurer.
Save Time & Energy
Managing an insurance claim is exhausting. It takes time and energy out of your life.
Insurance companies demand evidence of the loss. They require photos, videos, and other proof. Some drag their feet to delay your claim, while others demand excessive proof in order to frustrate you.
When you hire a public adjuster, you’re paying someone to handle all of this hassle for you. Instead of wasting time and energy doing things you don’t understand, you can relax knowing a professional is handling everything for you.
Manage Paperwork, Documentation, and Evidence
Even small insurance claims can have mountains of paperwork. For larger insurance claims, you may be dealing with thousands of pages of documentation, inventories, damage assessments, quotes, and more.
Managing this paperwork is exhausting, and most homeowners don’t know where to start or how to organize everything.
Fortunately, public adjusters do have plenty of experience managing claim-related paperwork. They know the documentation insurers need to verify your claim. They know what insurers like to see, and they know how to organize everything to maximize your insurance payout.
Spot Hidden Damages
Fires, floods, hurricanes, and storms cause obvious damage to your home.
However, disasters can also cause less-obvious damages. Some homeowners don’t discover this damage for weeks after a loss – and it may be too late to make a claim.
Public adjusters know where to look for hidden damages. They know where mold may accumulate after water damage, for example, and they know the signs of foundation damage that your insurance company might miss.
Insurers don’t want to add money to claim settlements; they typically want to pay you as little for claims as legally possible. They often won’t look for additional damages – but public adjusters will.
Negotiate with Insurer On Your Behalf
Many insurers offer a low initial settlement because they expect you to negotiate.
However, it’s tough to negotiate with your insurer when you don’t know insurance policies. This leaves many homeowners at a disadvantage when negotiating insurance claims.
Public adjusters know how to negotiate and they have years of proven negotiation experience. Many public adjusters have a proven track record of negotiating higher settlements, overturning denied claims, and fighting with insurers on behalf of clients to ensure every penny they are owed.
Get Full Value for Your Insurance Policy
You buy homeowners insurance to protect your home. Unfortunately, many homeowners don’t know how to use the full value of their insurance policy.
A public adjuster shows you how to maximize every dollar of coverage on your homeowners insurance policy. The public adjuster can show coverages you didn’t know you had, for example.
If you want to get the payout you paid for, then it may be crucial to hire a public adjuster.
Speed Up Payout & Repairs
Want to get paid faster? Want to move back into your house more quickly? Of course you do.
Some insurers drag their feet when dealing with homeowners. They may want to delay your claim and frustrate you to convince you to accept a lower payout.
Public adjusters can help by speeding up the payout and repair process. They can hold your insurer accountable, making sure you receive the payout and repairs you need as soon as possible.
Get a Free Consultation or Claim Review
Not sure if a public adjuster is the right fit for you? Many public adjusters offer free consultations and claim reviews.
A public adjuster can spend a few minutes looking over your claim, then explain how they could help. If you decide the public adjuster is the right fit for you, then you can proceed. If not, you can choose a different approach.
Cons Of Hiring A Public Adjuster
Public adjusters are the right choice for some homeowners insurance claims – but not all claims. Here are some of the cons of hiring a public adjuster.
They’re Not Free
Public adjusters, like all professionals, receive payment in exchange for providing a service.
Public adjusters are licensed professionals. Many have decades of industry experience. Some have devoted years towards studying and licensure. Others have spent time working with insurance companies before flipping to represent policyholders like you.
Most public adjusters are paid by contingency. That means you pay nothing until the final settlement.
After you accept your insurance company’s final offer, you pay the public adjuster a pre-arranged percentage of that payout.
Most public adjusters charge a contingency claim based on the amount of the total settlement from the insurance company. There are some companies that will waive fees for certain coverages and others that won’t. Each contract will have some differences, so talk openly with your public adjuster if you don’t understand the fees associated with their services.
All public adjusters disclose fees upfront. Expect to pay a fee of 8% to 20% of the final payout based on the public adjuster’s experience and qualifications.
Licensing, Background, and Experience Varies
Most states require public adjusters to be licensed. They must take an exam and complete continuing education credits.
Other states have no public adjuster licensing system whatsoever, or very minimal regulations.
As with many professionals, public adjusters vary in quality based on their education, experience, licensing, and background.
Some public adjusters are accomplished professionals with decades of industry experience. They’re willing to fight tooth-and-nail on your behalf to obtain the highest possible settlement.
Other public adjusters are inexperienced contractors looking for a quick buck: they want to take over your claim, obtain a settlement as quickly as possible, take their payout, and move on.
Research your public adjuster to ensure you’re getting a licensed, experienced industry professional dedicated to solving your claim.
Not Ideal for Claims Under $5,000
Public adjusters typically work on contingency. That means they’re attracted to cases with higher payouts. The higher the payout, the more the public adjuster gets paid.
Most public adjusters work on claims where the disputed amount is over $10,000. In this situation, the public adjuster can make a meaningful difference to your claim while receiving fair payment for their services.
If you have a small dispute with your insurance company, it may not be worth hiring a public adjuster. However, most public adjusters offer free consultations to determine how they could help your claim.
Is Hiring A Public Adjuster Right For Your Claim?
Public adjusters can speed up your insurance claim and increase your payout – all without charging you until you accept your insurer’s final offer.
Today, many homeowners hire public adjusters to expertly manage claims from start to finish.
Contact ClaimsMate today to schedule a consultation with a public adjuster. We can help you discover the pros and cons of public adjusters with a no-obligations claim review.
Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.
