You should already expect that your insurance provider will already be armed with their professional team after you have suffered losses due to unforeseen property damages. Without warning, a burn, earthquake, flood, winter storm, hurricane, or other natural calamities will upend your life. With that, you have to face the obligations and responsibilities as an insured policyholder. Among them is the choice of hiring a public adjuster to strongly advocate for you.
Thus, how do you determine whether you need the assistance of a public adjuster to serve your best interests?
- When processing an insurance claim, you will have to document, file, and prove your insurance claim
When an insurance claim is substantial in size or involves several complicating circumstances, a public adjuster is an ideal agent to have by your hand. Your insurance provider will retain an adjuster to handle the claims; but, they are compensated by the insurance company to handle the claim on their behalf — not really on yours. An insurance company employs a team of professionals who are familiar with the ins and outs of the contract, what it protects and what it removes, and who are focused on their bottom line. If you lack the same support, you can find yourself in a losing fight.
An argument will easily become complicated. For instance, if your house is damaged in a fire, how much more would you go when it comes to proving your losses and obtaining some compensation? For example, suppose you never kept an archive of your belongings and are now required to construct one from memory, listing all the objects lost in the accident, along with their current values. These public adjusters have mastered this procedure and can guarantee that you achieve the most rehabilitation practicable on any of your policy-covered belongings. Numerous circumstances will easily cloud a lawsuit, however public adjusters have the expertise and knowledge necessary to guarantee a proper compromise and settlement.
- You do not have the full understanding of the language imbued in your insurance policy as well as the extent of its coverage
Public adjusters work with you, the policyholder, to further assist you with recovering financially from a loss. Insurance cases include a plethora of intricate requirements, procedures, clauses, technical terminology, and questions that may be resolved in order to optimize the settlement. Basic words such as Actual Cash Value, Business Interruption Coverage, Period of Restoration, and Replacement Costs are only a few examples of concepts you may be familiar with before negotiating a claim on your own, in addition to understanding how the insurance provider determines the valuation. Given that you are unlikely to have prior experience in property claims, engaging a public adjuster will significantly raise the value of your insurance settlement.
- Hiring a public adjuster is the best option especially if you do not have the time to personally deal with the insurance claims process
Suffering the loss of a business or a house is a traumatic moment. As a business owner, you would be responsible for a variety of other tasks in addition to the insurance claim, such as managing processes and making critical business rehabilitation decisions. As a homeowner, you will experience an emotional depletion of personal belongings and experiences, and it will have an impact on your whole way of life. This is a moment where you should be concentrating on reestablishing a stable basis for your company, house, or family, not on studying the ins and outs of the property insurance process.
- Your insurance provider is not facilitating your claim in a timely manner, or if you feel that you are understating your insurance claim
A claim for insurance is indeed a time-consuming procedure. If you believe you are being ignored by your insurance agent (they are not listening to your calls promptly), it would be prudent to get a public adjuster to your team.
The public adjuster can communicate directly with the insurance provider on your behalf and function as a go-between, allowing you to escape these time-consuming interactions and meetings. However, final arbitration decisions will remain in your possession. According to Greg Raab, Director of Consulting Operations at Adjusters International, “a public adjuster cannot approve or refuse any offers without your express authorization; you, the policyholder, retain oversight of decisions with the assistance of your public adjuster’s industry experience and advice.” Public adjusters understand how to connect with the individuals who have the solutions.
Additionally, a public adjuster may ensure that the claim covers the damages incurred as a consequence of the insured property’s loss. For example, depending on the program, debris disposal, loss of company revenue, temporary relocation costs, and extra living expenses can all be protected.
Getting a professional representation is the sensible course of action when negotiating with the insurance provider in connection with a covered industrial or residential claim. You’ve invested your whole life constructing your company or home and paying substantial insurance premiums to cover it. By hiring a public adjuster, you may be certain your insurance claim will be treated properly from the outset.
Compensation Schemes When Hiring A Public Adjuster
Occasionally, public adjusters charge flat rates. For instance, if you have a reasonably large case that seems to be very uncomplicated with a clear result, the public adjuster can accept the case on a single, flat fee basis. Accurately assess which expenditures are covered – and which are not – by this arrangement to prevent incurring any extra charges or costs. Other payment schemes that these public adjusters may charge you are the following:
- On the basis of actual hours rendered (Hourly rate)
This is a pretty rare method of charging rates for public adjusters, both industrial and private. The large percentage of public adjusters demand a fixed rate or, more often, contingency payments – in part because it is often difficult to determine how many work hours a given case may require. Nonetheless, you can stumble upon public adjusters that bill on an hourly basis. This rate is subject to change depending on their position, background, the form of regulation in which your argument comes, and other considerations.
- On the basis of the outcome of the claim (Contingency basis)
This is perhaps the most famous method of charging by public adjusters. You are not charged directly by the adjuster, but you might be liable for any nominal costs and expenditures. The public adjuster takes a portion of the payout awarded in this process – typically between 5% and 15%, but 20% is not unusual in certain cases.