To hire or not to hire a public adjuster
You don’t always have to hire a public adjuster to help with your insurance claim, but it might be a good idea to look into it if you’re lost in the paperwork or have a complex claim. If you decide to go down this route, it’s essential to understand how their fees are structured.
It’s important to consider whether you need the adjuster. Usually, policyholders think about if they have the time, what their insurance company has already offered them, or if they’re having difficulty engaging with the insurance company. Think about whether any of these scenarios apply to you, and if so, you might want to consider hiring a public adjuster.
The advantage of having a public adjuster is that they will handle all aspects of your claim and even go as far as learning your claims policy. After conducting their initial assessment of your policy and the damage you’re claiming for, they will negotiate the highest settlement they possibly can. As the public adjuster does not have any affiliation with the insurance company, you can rest assured that they have your best interests at heart. As they’re working for you only, you’ll have to pay for their expertise and service.
How Do Public Adjusters Charge?
As with any service provider, there are many ways an adjuster can charge for their services. Often this could be a flat rate, an hourly rate, or a contingency fee. A contingency fee is the most common way public adjusters charge. Regardless, adjusters should discuss the method of payment upfront. It’s important to note that depending on where you live, the fees for public adjusters are regulated at the state level, creating restrictions on when and how much you can be charged. The types of fee structures you can opt for are as follows:
1. Contingency basis
This is the most popular way for public adjusters to charge their clients. There are no flat fees, but instead, adjusters are paid a percentage of the overall payout from your insurance. This fee will depend on the expertise of the adjuster and the state they’re practicing in. It also depends on whether your claim is processed in an event declared as a disaster. For example, in Florida, if your claim is not considered to be one resulting from a disaster, then the maximum your public adjuster can charge is 20%. On the other hand, if it is considered damage from a disaster, the most adjusters can charge only 10%.
2. Flat rate
Some large but straightforward claims use this payment method as it makes things simpler. If you opt for this method, be sure to clarify (before the contract is signed) what is and isn’t covered by the fee. This is important as you don’t want to be surprised by any additional fees at the end.
3. Hourly rate
Charging by the hour isn’t a common way for public adjusters to bill. Some may offer this, and their rate will depend on the expertise and the size of the claim. If this is the method your adjuster offers, ask if they provide an invoice with the number of hours worked and a breakdown of the charges.
Essential Points to Note
When you’re claiming from your insurance due to damage sustained to your property, this can be a stressful time. It can be easy to listen to someone who offers you everything you want in one easy step. Be careful of anyone offering you something that sounds too good to be true, especially with the condition of an upfront deposit. Meanwhile, others will refer you to an unscrupulous contractor who may not be the best person for the job, but they may get a kickback. If you encounter a public adjuster who requests either of these things, it might be a good idea to look into your state laws, as most have outlawed these practices.
It’s good to know that most public adjusters are honest and competent professionals. However, you should still always have a look around for the best adjuster for your needs. Ask friends and family, and be sure to read any available online reviews. These steps are vital as you’ll want to work with someone you’re comfortable with and to make sure you’re on the same page from the outset.
If you decide to hire a public adjuster, you might be wondering how they get paid. They’ll be paid once you receive your final settlement offer from the insurance company. The public adjuster will then take the pre-arranged fee from the payout. A contingency arrangement can motivate public adjusters to negotiate for the highest settlement possible until your claim pays out. Most states prohibit public adjusters from taking any payments until your claim is fully settled. This rule means that you have the option to accept or deny the final claim without any time or financial pressure.
Public adjusting fees conclusion
Overall, hiring a public adjuster can save you a lot of time and effort when navigating an insurance claim. Opting for one can also help you get the maximum payout available. The flexible payment methods are also helpful as you won’t have to pay anything upfront. This is especially handy when you consider all the expenses you might face during this crucial time. Public adjusters will be the helping hand you need at a critical time.
The Crestview Advantage
Crestview Public Adjusters has millions of dollars worth of experience in managing insurance claims. Crestview has seen it all and knows how to manage the claims, whether it was a loss due to fire, frozen pipes, or cyber damage. Do you have a claim that you think the insurance company should be paying for? Call today for a free consultation.
