When dealing with insurance claims, it’s common to hear about both public adjusters and insurance adjusters. Although they sound similar, their roles and loyalties differ significantly. Knowing these differences can help you make informed decisions during the claims process.
This article will break down the roles of public adjusters and insurance adjusters. Keep reading to discover why you need a public adjuster and the benefits. You will also learn why it is best to be cautious around insurance adjusters.
Who Is a Public Adjuster?
A public adjuster, also known as a claims adjuster, is a licensed professional who works on behalf of policyholders. Their job is to represent individuals or businesses in negotiating insurance claims. When an event like a fire, flood, or storm damages your property, a public adjuster ensures you receive the maximum payout from your insurance company. They have deep knowledge of insurance policies, claims processes, and property damage assessments.
Public adjusters don’t work for insurance companies. Instead, they are independent and solely focused on helping you—the policyholder. They provide expertise that helps you navigate the complex insurance world. Thus, they ensure you understand your coverage and that your claim is properly filed and negotiated.
To become a public adjuster, one must train and obtain a state-issued license. Different states have different licensing requirements. However, most require passing an exam and completing a set number of hours in insurance or property damage education. Public adjusters also have a code of ethics to follow. Furthermore, they participate in ongoing training to stay up-to-date on changing insurance regulations.
Public adjusters usually charge a fee for their services. Usually, the fee is a percentage of the final claim settlement. This fee structure encourages public adjusters to work diligently to maximize your claim because their pay depends on it.
What Is the Role of a Public Adjuster?
The primary role of a public adjuster is to advocate for policyholders throughout the claims process. From assessing damage to negotiating settlements, public adjusters work to secure a fair payout for their clients. Here are some important roles that public adjusters play during the claims process:
Evaluating Damage
Public adjusters often start by evaluating the damage to your property. They inspect the site, document the losses, and make detailed estimates of repair costs. This thorough evaluation ensures that they do not overlook any damage.
Reviewing Your Insurance Policy
A public adjuster will review your insurance policy to determine what’s covered and what’s not. Policies can be tricky to understand, often filled with industry jargon and exclusions. Public adjusters know how to interpret these policies. Thus, they can clarify any confusing language, ensuring you are aware of your rights.
Preparing and Filing the Claim
Filing an insurance claim can be overwhelming. Public adjusters handle all the paperwork involved, ensuring everything is in order and submitted correctly. They document your losses and provide supporting evidence. Furthermore, they draft the claim in a way that maximizes your chance of a fair settlement.
Negotiating with the Insurance Company
Once they have submitted the claim, negotiations begin. Insurance companies often try to minimize payouts. Public adjusters act as your advocate in these negotiations. They have the experience to push back against low offers and demand the compensation you deserve.
Following Up
Even after the initial negotiations, the work doesn’t stop. Public adjusters continue to monitor the progress of your claim. This ensures that the insurance company doesn’t delay or deny the payout. Additionally, they can escalate the claim or take legal steps to secure a fair settlement.
Who Is an Insurance Adjuster?
An insurance adjuster is a professional the insurance company employs to evaluate claims. Their primary role is to assess the damage or loss. They do this to provide an estimate for settlement.
Insurance adjusters have to investigate claims. This involves inspecting the damage and gathering relevant documentation. Furthermore, they sometimes interview witnesses and review the insurance policy to ensure it covers the claimed loss. They handle a wide range of claims from property damage to vehicle accidents.
While they may appear neutral, insurance adjusters ultimately represent the insurance company’s interests. Their goal is to resolve claims efficiently while minimizing the company’s financial liability. This often means they often offer lower settlements. They do this by utilizing a range of secret tactics. Therefore, you should be cautious and informed when dealing with them.
How Do Public Adjusters Differ from Insurance Adjusters?
While public adjusters represent you, insurance adjusters work for the insurance company. This fundamental difference sets the two roles apart. Additionally, it directly affects the outcome of your claim. Here are some more specific differences:
Who They Work For
Insurance companies hire insurance adjusters. Therefore, their primary duty is to minimize the company’s financial exposure. Insurance adjusters are typically salaried employees or contractors who get paid regardless of the claim’s outcome. This can make them less motivated to ensure policyholders receive the maximum settlement.
Public adjusters, on the other hand, work for the policyholder. They are also usually paid out of the settlement fee. Therefore, they have an incentive to guarantee the highest possible settlement. Furthermore, they will look out for your interests rather than the insurer’s.
Different Levels of Expertise
Public adjusters are experts in reading and interpreting insurance policies. Many insurance adjusters, however, may not have the same level of expertise. Sometimes, insurance adjusters also focus only on specific parts of the claim. For instance, an insurance adjuster may overlook certain types of damage that you can claim under your policy. Public adjusters, on the other hand, have a more comprehensive view of the claim. Additionally, they will ensure you receive your full benefits under your policy.
Advocacy vs. Profitability
Public adjusters advocate for you, ensuring the best outcome. Insurance adjusters, by contrast, prioritize the insurance company’s profitability. As a result, they may push for quicker and lower settlements. This could leave you underpaid for your damages.
Why You Should Be Careful Around Insurance Adjusters
Insurance adjusters are not your allies. Even though they may act friendly, their goal is to protect the insurer’s interests. This conflict of interest can be problematic for policyholders who are unfamiliar with the claims process. Therefore, it is best for you as a policyholder to be weary of insurance adjusters. Here are some reasons:
Lowball Offers
One of the most common tactics insurance adjusters use is lowball offers. They know that many policyholders are eager to resolve their claims quickly. Therefore, they offer a lower settlement, hoping the policyholder will accept it without negotiation.
Misleading Information
Insurance adjusters may not fully explain your policy or what you can claim. They might leave out critical details, such as coverage for hidden damage or additional living expenses. Without understanding the full extent of your coverage, you might settle for less than you deserve.
Furthermore, they may recommend contractors who are part of third-party administrator programs. Those kinds of contractors will ask you to opt for reusing damaged materials. They do this to cut costs for the insurer. Your public adjuster, however, will push for a replacement which costs more but is safer for you.
Pressure to Settle
Some insurance adjusters apply pressure to settle the claim quickly. They might frame it as a favor to help you get your money faster. However, rushing through the process can result in an inadequate payout. It’s essential to take the time to properly assess all damages before accepting any settlement offer.
The Benefits of Hiring a Public Adjuster
Given the challenges of dealing with insurance companies and their adjusters, hiring a public adjuster offers significant benefits. Here are some reasons you should consider hiring a public adjuster:
Expertise in All Types of Claims
Public adjusters are skilled at handling all kinds of claims. This includes even the most complex claims. Your claim may include coverage disputes or property damage. A public adjuster can navigate insurance policies and negotiate on your behalf.
Maximizing Your Settlement
Policyholders who hire public adjusters often receive significantly higher settlements than those who don’t. This is because public adjusters take the time to thoroughly evaluate your losses. They also deeply understand your insurance policy. Furthermore, their goal is to maximize your compensation.
Handling the Paperwork
Filing a claim involves an enormous amount of paperwork. Missing a deadline or submitting incomplete information can delay your claim. Public adjusters handle all the paperwork; they submit everything correctly and on time. This reduces your stress and the likelihood of errors.
Leveling the Playing Field
Insurance companies have teams of adjusters and lawyers to protect their interests. Hiring a public adjuster levels the playing field. You’ll have a professional on your side who knows the system and can counter tactics that may reduce your claim.
Time Savings
Handling a claim yourself can take time away from your job or family. A public adjuster can take over the process. This allows you to focus on your daily life while they work to secure your settlement. This convenience is invaluable, especially during the stressful aftermath of a disaster.
Conclusion
While insurance adjusters work for the insurance company, public adjusters are independent professionals who advocate for you. They handle the details of your claim and offer peace of mind during a stressful time.
Hiring a public adjuster is one of the best decisions when dealing with an insurance claim. Their expertise, advocacy, and commitment can result in a smoother claims process. In contrast, listening to insurance adjusters can lead to low payouts.
You don’t need just any public adjuster. You need a reputable and experienced one. Essentially, you need On-Site Adjusting. We offer ease and professionalism throughout the claims process. Shoot us a message today, and let’s take that claim off your hands.
