Month: October 2020


In most cases, the answer is a resounding yes. An exception is if the carrier has committed in writing to pay your claim in full to your satisfaction. As I will explain, when carefully considered, the reasons to have a competent, reputable professional in your corner as soon as possible far outweigh the reasons not to have one.

Some common hesitations for hiring a public adjuster early in the claims process are as follows:

  • “The insurance adjuster will be adjusting the claim so why do I need my own adjuster”.
  • “The carrier is going to pay something so why should I pay a public adjuster fee on money that I know I am going to receive”.
  • “I want to wait and see what the insurance company does before hiring a public adjuster”.
  • “My insurance carrier said a public adjuster was not necessary”.

We believe that a competent, professional, licensed public adjuster can be worth their weight in gold, even if they handle the claim from the beginning and charge a fee. The following is a laundry list of compelling reasons to hire a public adjuster early in the process. Though not exhaustive, these reasons are what I classify as critical.

Claim Documentation: Documentation from the beginning is crucial to ensuring a smooth claims process and prompt payment. Remember when you first arrived on the scene of your destroyed property. Debris was strewn everywhere, personal items and other contents were unaccounted for, water or soot had permeated the interior and your emotions were rampant. Thinking logically and taking steps to make sure you don’t spoil evidence for an insurance claim was the last thing on your mind. Photographing items and collecting strategic pieces of evidence were not the first things on your mind, but they should have been. Failure to properly document damage and inadvertently destroying evidence can be costly mistakes during a claim. Having a professional who knows what to look for collect details and photo-document the loss properly can make or break a claim. A quality public adjuster can not only document fully but also document with attention to items that support your claim based on your policy.

Policy & Coverage: A licensed public adjuster is trained in coverage issues and can read an insurance policy to determine what it actually covers and how much that coverage is. They can also point out the issues that are buried in your insurance policy that can affect how the claim presentation should be put together. It makes no sense to delay a claim in discussions over items that are not covered and likewise it would be a mistake for an insured to not claim coverages that are readily available to them under the policy. The insurance adjusters are not necessarily sent out to find items that fit your coverage. A public adjuster can disseminate what is covered, what is not and assemble a claims submission package in a fashion that meets the coverage requirements.

The Sailing Ship: There is an old cliché that says “that ship has already sailed.” The direction a claim takes from the beginning will set the tempo of how that claim proceeds and trigger all kinds of moving parts that are difficult to reverse once they have momentum. Once an insurance adjuster inspects, forms an opinion, writes those notes in the claims diary and reports to their superiors, that ship has just set sail. In order to move a claim along as efficiently as possible it’s best to have the ship pointed in the right direction when it leaves the harbor. It’s not impossible to re-direct the ship once it sails, but it is much more difficult than simply setting the right course up front. This is especially true when an independent catastrophe adjuster has a heavy work load and simply misses things because they are so busy and so overloaded. It never looks good for an independent adjuster to be called out for getting a claim wrong and using a Public Adjuster at the outset can help avoid this.

Loss Reserves: A reserve is the amount of money that an insurer sets aside when an insurance claim is filed and they make their initial determination of what they may owe on the claim. When an insurance claim is filed the adjuster dispatched by the insurance carrier suggests a reserve amount for the loss. Typically the insurer moves the reserve amount of money for the claim to a special account designated for paying losses. Most of the time that number is not disclosed to the policyholder because the carrier does not want to commit either way as far as amounts that may be due. The issue is when a claim is not assessed properly early on and the reserve amount is set lower than it should be. When the reserve is set low and the actual claim amount comes in much higher at a later date, red flags go up and the insurer begins searching for answers as to why the reserve was inaccurate. This results in delay, scrutiny and a slower claims process. Having a public adjuster work with the insurance adjuster to set a realistic reserve early on can make the claims process much more expeditious.

Proof of Loss: Almost every policy in existence today has a proof of loss form (POL) filing requirement. This one simple form can have dramatic consequences regarding how much you are paid on a claim, if you are paid on a claim and whether you could end up losing some rights if you fail to file this form or file it incorrectly. Policies will generally have different requirements for the filing of this form and different time lines required for filing. It is critical that you file this form timely, correctly and according to the requirements outlined in the policy. A trained and licensed public adjuster should be able to direct you to the terms in the policy that control the POL form, assist you in filling out the form and guide you on the time frames that you have to file the POL. (You are also encouraged to seek a legal opinion as to what the consequences of filing a POL could be and how it may affect your rights).

Presenting The Claim: What many policyholders are not aware of, is that in most cases the insured is responsible for documenting, proving damage and itemizing the claimed amount of the loss. This includes measuring the property, photographing the property, documenting damage, writing an estimate of damages and combining that data into a format that is acceptable to the insurer. Bear in mind that the insurance adjuster who is investigating the claim on behalf of the insurer, is accountable to and paid by the insurer. A claim that is presented properly from the beginning by a qualified public adjuster can shortcut a lot of red tape and place the insurance carrier in a position where they are hard pressed to delay prompt payment of the claim.

Hiring a Public Adjuster After the Initial Offer: Some policy holders choose to hire a public adjuster after the insurance companies first offer. This is a gamble. In today’s world, more often than not, claims are undervalued and underpaid on a regular basis. We have found that the deeper an insurer becomes in taking a defensive position, the more difficult it becomes to change the outcome. Policyholders who choose to wait and see how much the carrier offers can be in for a shock when the numbers come in and the short term savings of public adjuster fees on the initial payments often pale in comparison to the missed gains on the eventual claim settlement. In January of 2010 The Office of Program Policy Analysis & Government Accountability in The State of Florida released report #10-06 that studied public adjusting and the results of claims for consumers who utilized a public adjuster*.

OPPAGA report #10-06 stated as follows: “Policyholders with public adjuster representation typically received higher settlements than those without public adjusters”.
The report went on to state: “Policyholders that filed catastrophe claims in 2008 and 2009 generally received larger insurance settlements than policyholders that did not hire these persons.”….. “The difference in payments was larger for claims related to 2005 hurricanes, with public adjuster claims resulting in payments that were 747% higher.”

Our team members have been involved in adjusting and settling claims for more than twenty years. We have yet to see our involvement negatively affect the ultimate monetary recovery of an insured. While “wait and see” might be the right choice for some, we firmly believe that the OPPAGA study has merit and that having a professional on your side early in the process can truly be a policyholder’s best choice for the best eventual outcome.

Author: Clay Morrison
Morrison & Morrison, Inc.
*Source: Office of Program Policy Analysis & Government Accountability- January 2010 Report#10-06

Public Adjusters Help You Nail Homeowners Insurance Claims

Public insurance adjusters are worth their weight in gold. At least that’s the assessment of Carole Lieberman, whose Los Angeles home was damaged by ash and soot after the Malibu Woolsey Fire tore through Southern California in 2018.

She filed a claim on her homeowners insurance. Her insurance company offered her only $25,000, which would have covered only a fraction of her repair expenses. So she hired a public adjuster, an independent professional who can help you settle an insurance claim.

Unlike insurance company adjusters, who charge nothing extra to the policyholder, public adjusters are independent and charge between 10% and 20% of your settlement for their services. They work on your behalf to make sure you get what you’re entitled to.

“My public adjuster is a champ who keeps fighting for me by proving to the adjuster that what we are asking for is valid,” says Lieberman, a physician. “We are up to over $500,000 [in reimbursement] now and counting.”

Lieberman needed an adjuster because her large claim was getting lowballed by her insurance company. Hiring a public adjuster for any large, complex or expensive home insurance claim can pay off. Some say you should call an adjuster any time you feel your insurance company is shortchanging you on a claim.

How Does a Public Insurance Adjuster Work?

Unlike an insurance company adjuster, a public adjuster advocates exclusively for policyholders, says Tim Cornett, president of the Florida Association of Public Insurance Adjusters. They are licensed and trained insurance professionals.

“The financial interests of insurance companies are best served by convincing policyholders to accept the lowest compensation possible,” he says. “The financial interests of public adjusters are directly tied to the interests of policyholders to receive full and fair compensation on insurance claims.”

Cornett says public adjusters are often more thorough in their damage analysis than company adjusters. That’s because of their training and also because their loyalties are to you, the policyholder, and not the insurance company.

He says there’s no magic claim amount at which you should call an adjuster. Instead, consider  a public adjuster when you feel you’re not getting the full amount of your claim. A public adjuster can also help you keep track of paperwork and deadlines.

What Happens During a Big Homeowners Insurance Claim

A large claim can get confusing really fast. Say a hurricane hits your home and you’re living out of a hotel. Your insurance company could assign three different adjusters to work on your claim: one for damage to the dwelling, one for your personal property and one for additional living expenses.

Unfortunately, preparing and presenting a successful claim is a science. It requires a meticulous approach to ensure a fair settlement. An adjuster can explain the process during a confusing and stressful time and work on your behalf handling the meetings, e-mails, phone calls and paper documents that flow for a large claim.

“You’re at a disadvantage when you have major house damage or a total loss of your home,” explains James Guercio, owner of Rubin & Rosen Adjusters in New York. “You face a home insurance claims process that could easily stretch out for some time, require detailed paperwork and leave you mentally and physically exhausted.”

Making matters worse, most families know little or nothing about insurance, let alone the claims process. So on a large claim, they’re in unfamiliar territory and dealing with multiple insurance adjusters.

“Hiring a public claims adjuster will put you on an even playing field with your insurance company,” says Guercio.

Not every claim requires a public adjuster. Many claims are routine, and a company adjuster is more than capable of doing the job effectively.

“In most cases, a public adjuster is not needed,” says Jeff Zander, the CEO of Zander Insurance. “But an adjuster can be helpful or be worth their cost in the event of a very large claim or total loss of a home.”

And remember, you can always request another company adjuster if you don’t like the one assigned to you.

Where to Find A Public Adjuster

There are several ways to find a reliable public insurance adjuster.

A recommendation

A word-of-mouth recommendation is one of the best ways to find a reliable adjuster. If someone has done a good job for a friend or family member, chances are they’ll work hard for you. Good insurance adjusters often rely on word-of-mouth recommendations for new business—so if you know of a good public adjuster, tell a friend.

A regional association

A state organization such as the California Association of Public Insurance Adjusters, the Florida Association of Public Insurance Adjusters or the Texas Association of Public Insurance Adjusters can guide you to one of its members. These associations often have strict membership requirements, and their adjusters must adhere to a code of ethics.

The National Association of Public Insurance Adjusters

The national organization for insurance adjusters has a directory on its site where you can find the closest member. Here, too, members must meet requirements and abide by a code of conduct.

Doing the Math on Public Insurance Adjusters

For any homeowners insurance claim, an adjuster may be able to point out claims money you’re entitled to that you didn’t even know about, After all, a homeowner can’t be expected to be an insurance expert. A public adjuster will also keep working when you’re exhausted by the whole process. By maximizing your claim, they can pay for themselves.

On a smaller claim, a public adjuster may be able to find language in your insurance contract that can make $1,000 a $10,000 claim—or more.

Sure, you can do all of the work yourself. But if you have a job or are recovering from a disaster, do you really have the time or energy?