Public Adjusters Vs Independent Adjusters: What’s the Difference?
There are public adjusters and independent adjusters. Both are insurance industry professionals. Some even use the terms “public adjuster” and “independent adjuster” interchangeably.
But what’s the difference between the two? Which one represents your best interests? Which one should you trust for your insurance claim? Keep reading to find out everything you need to know about public adjusters versus independent adjusters.
Independent Adjusters Work for the Insurance Company
Independent adjusters and public adjusters are two different roles. Although some use the terms interchangeably, public adjusters and independent adjusters play different roles in your claim.
Independent adjusters and public adjusters play similar roles in a claim: they “adjust” your insurance claim and determine how your insurance policy covers certain damages. However, independent adjusters and public adjusters perform this duty in different ways:
- Public adjusters are also (confusingly) known as private adjusters. They work for policyholders – like ordinary homeowners and business owners – and represent their best interests in an insurance claim.
- Independent adjusters, on the other hand, technically represent both the insurance company and the policyholder. However, their bottom line is to represent the person paying their paycheck – which is the insurance company that hired them.
Independent adjusters have no obligation to represent you – the policyholder. They have the word “independent” in their name, but they’re not completely neutral; instead, they’re contractors hired by your insurance company to represent the rights of your insurance company and your insurer’s best interests.
Independent adjusters are different from company adjusters. Your insurance company has salaried employees known as company adjusters (or simply as insurance adjusters). These professionals manage your claim and act as the first line of communication between policyholders and insurance companies.
Your insurer might hire independent adjusters on a case-by-case basis – say, for a specific claim. Many independent adjusters work as part of an independent adjusting firm contracted by an insurance company. Like a public adjuster, independent adjusters typically receive payment based on a percentage of the claim.
What Does an Independent Adjuster Do?
An independent adjuster’s job is to represent the rights of your insurance company while handling your claim.
When you file a claim with your insurer, your insurer assigns its own company adjusters to your claim. Or, your insurer may decide to hire an independent adjuster to manage your claim.
Like a company adjuster, an independent adjuster arrives at your home or business to inspect the damage, analyze the claim, assess your policy, and determine how coverage applies. They determine adequate compensation.
However, it seems that quite often the goal of an independent adjuster is to reduce your payout as much as possible: their goal is to pay you the lowest amount of money they’re legally obligated to pay based on the terms of your insurance policy.
A Public Adjuster Works Exclusively for the Policyholder
Public adjusters, on the other hand, work for you – the policyholder.
As a homeowner or business owner, you’re probably not an insurance claim expert. Insurers may take advantage of your inexperience by offering low payouts or denying your claim based on fine print.
Public adjusters represent the public’s best interest – or your best interest – against your insurance company. They perform roles like:
- Analyze the damage with your best interests in mind
- Organize documentation and evidence to maximize payout
- Negotiate with insurer to overturn denied coverage and increase payout
- Manage claim from start to finish while representing policyholder’s best interests
Overall, a public adjuster’s goal is to help the policyholder with the intricacies involved in the insurance claim process.
If you’re like most homeowners or business owners, then this is your first major claim. Insurers may try to push you around, deny coverage without just cause, or present a lowball offer. Public adjusters represent your best interests, fighting back against insurers to ensure you receive the payout you paid for.
You can get in touch with a qualified public adjuster for a free consultation about your claim here.
Public adjusters might work on their own. Or, they could work as part of a larger firm of public insurance adjusters. Most public adjusters don’t charge anything until you accept the final settlement offer from your insurance company, at which point they charge a pre-arranged fee (typically around 10%) of the final claim settlement amount.
What is an All-Lines Adjuster or a P&C Adjuster?
When searching for public adjusters online, you might see some adjusters listed as “all-lines adjusters” or “P&C adjusters.”
What do these designations mean?
Adjuster licenses vary between states. Some states, including New York, have 6 or 7 different types of licenses for adjusters.
In Texas and several other states, however, you typically have three options when hiring an adjuster: all-lines, property & casualty (P&C), or workers compensation.
Workers compensation adjusters work on workers compensation claims. The other two adjusters perform slightly different roles in homeowners insurance and commercial insurance claims:
- Property & casualty adjuster, or P&C adjusters, are certified to process most types of insurance claims. They cover property and casualty claims for residential, commercial, automobile, farm and ranch, inland marine, and ocean marine insurance claims.
- All-lines adjusters play a similar role to P&C adjusters. The only difference, however, is that an all-lines adjuster can handle workers compensation claims in addition to everything a P&C adjuster can handle.
Ultimately, the all-lines adjuster is the most comprehensive adjuster license available. However, unless you’re dealing with workers compensation issues, an ordinary property and casualty (P&C) adjuster is sufficient for property claims cases.
Conclusion on Insurance Claim Loss Adjusters
There’s a big difference between public adjusters and independent adjusters. While independent adjusters represent their employer (the insurance company), public adjusters represent you – the policyholder.
To hire a qualified public adjuster or receive a no-cost consultation, contact ClaimsMate today!
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.
