Most homeowners are not aware of self-employed Insurance claims adjusters; and those that are aren’t sure of what they can do for them, if anything. Others don’t think about it until they see the rather skimpy estimate their insurance company sends them after they've finished their inspection process.  Others contact a claims adjuster immediately after they contact their insurance company and report the claim; and yet others, somewhere in between.  So, what are they and which should you contact; and when?  There are two types of self-employed insurance claims professionals: Independent Adjusters and Public Adjusters. We'll discuss them below and give advice on when to call the one that can help you.

The Independent Adjuster

Let’s contrast the difference between an Independent Adjuster (IA) and a Public Adjuster (PA) – because many people confuse the two. An Independent Adjuster is either a self-employed independent contractor who contracts with an insurance company to adjust an insured’s claim. Or they are an employee of a claims-handling company. Many times, you’ll see an influx of out of town Independent Adjusters after a catastrophe like a hurricane or large tornado where the damage is so great and the claims so many that the insurance companies need to contract with Independent Adjusters in order to get to the claims in a timely manner. 

This also is true with localized phenomena like a hail storm. A recent storm containing large hail in Texas was so stubborn that it lasted long enough to travel across multiple North Texas suburbs inflicting large losses on property, prompting insurance companies to contract with out of town and out of state Independent Adjusters to adjust the claims on roof and property damage.  

The self-employed independent contractor flavor of Independent Adjusters fill a vital role for insurance companies. While they are not on the payroll of the insurance company, the Independent Adjuster is still technically working for the insurance company and they get paid by the company per claim settled.  Many, if not most, have professional ethics and pride in a job well done.  But others do not and this can possibly be problematic in two ways: 1) the adjuster can be focused on getting the claim settled quickly in order to get paid and move on to the next contract job.  This can lead to sloppy estimates and settlements. And 2), The adjuster may not be as thorough as they should – leaving a lot of money on the table and not including items that should be included on the repair estimate to stay in the good graces of the insurance company they contracted with. This, they may believe, will earn them more contracts with those same companies in the future. You should not contact an Independent Adjuster to help you with your homeowners claim. In fact, an Independent Adjuster cannot, by law, work on a claim for a homeowner.

The Public Adjuster

A Public Adjuster, on the other hand, is employed by, works on behalf of and advocates for the homeowner. Public Adjusters are licensed by the state and are required to identify all damaged items when creating an estimate to present to the insurance company for the claim. The state of Texas requires careful training and knowledge to be licensed as a Public Adjuster. Public Adjusters must also be bonded, fingerprinted and pass a background check. Because the homeowner contracts with the Public Adjuster, the homeowner is responsible for paying them. In most cases, the homeowner doesn’t pay the Public Adjuster out of pocket. Payment is made after the claim has been settled, the insurance company has sent the payment and it has been received. In Texas, a Public Adjuster can charge the client up to 10% of the entire claim.  However, some may charge the 10% fee only for any additional money recovered in the claim.

The sooner in the claim process you bring in a Public Adjuster, the better. It is best if they can take over the claim and begin working on your behalf; and work with the insurance adjuster right from the onset of the claim – after you’ve contacted the insurance company and reported the loss.  But even if the ball has already begun rolling (and may have been rolling for a while), it’s not too late to contact a Public Adjuster – especially if you feel like the insurance company adjuster did not include all the needed costs to repair your home. 

If you have a large claim, there could be things that need repair that can’t be seen on the surface by the untrained eye. Public Adjusters have experience and are determined to find every possible item that needs repaired or replaced. The Public Adjuster can help to make sure nothing is missed in the claim and claim settlement. Many times, they can get a larger settlement claim for their clients. Homeowners can feel it’s not their place to negotiate for a better settlement; or lack the confidence to do so. A Public Adjuster will negotiate on the homeowner’s behalf with the insurance company.  It’s part of their job to do so. 

Here are a few questions you may wish to consider before hiring a Public Adjuster to help with your claim: Some of these have been touched on already.

How can I know if hiring a public adjuster is really necessary for my claim?

While your insurance company provides an adjuster to assess claim damage, specific circumstances may warrant the need for a professional advocate. Homeowners often opt for a Public Adjuster when faced with extensive damage, difficulty in determining the extent of the harm, or disagreements with the cost estimate provided by the company's insurance adjuster.

Does hiring a Public Adjuster expedite the claims process?

It could indeed. Public Adjusters, equipped with knowledge and training, can navigate the process efficiently due to their familiarity, potentially accelerating the necessary steps in the claims process.

Is it possible that I could contact a Public Adjuster too late in the process?

If additional damage is discovered after a claim is settled, you may still be able to hire a public adjuster. However, it is probably too late if you have signed a final release or if your claim period has exceeded the statute of limitations. You may still want to contact a Public Adjuster, give them some information and let them determine if that is the case or not.

Why shouldn’t I simply hire an attorney instead of a Public Adjuster?

Public Adjusters possess the expertise to assess damage, provide cost estimates, and negotiate with insurance companies. If you engage an attorney, they may likely hire a Public Adjuster anyway - resulting in additional costs and potentially prolonging the claims process.

Can the insurance company decide to cancel my policy if I hire a Public Adjuster?

No, your insurance company can only cancel your policy for specific reasons, such as non-payment or a breach of contract terms. Insurance companies tend to understand the desire for additional help and respond professionally when homeowners choose to hire a Public Adjuster.

What criteria should I consider when selecting a Public Adjuster?

Professionalism is paramount when choosing a public adjuster. Look for a reputable company in somewhat close proximity to you.  Your Public Adjuster may need to come to your property on more than one occasion and finding one close by will make scheduling easier for both of you. Check out their website and see what information they have there.  You can get a good idea of their knowledge and professionalism by navigating their web site.  Ensure that the adjuster is licensed and bonded, responsive to your needs, and capable of addressing any inquiries you may have.

What responsibilities should I expect my Public Adjuster to fulfill?

Your Public Adjuster should actively assist you throughout the entire claim process. This includes locating and assessing damage, providing their own estimate – not simply using the insurance company’s or a third party estimate, and negotiating with your insurance company on your behalf, all with the overarching goal of maximizing your claim.

Is it advisable to hire a Public Adjuster before contacting my insurance company about filing a claim?

No, your insurance policy typically requires you to contact the company first when filing a claim. Most people start that process by contacting their agent and the agent advises them how to get in touch with the claims department.  Hiring a Public Adjuster can be done after contacting your insurance company or waiting until you receive a cost estimate from your insurer's adjuster.

When is payment due for the services of a public adjuster?

Payment for a Public Adjuster is contingent on a prearranged percentage of the settlement after reaching an agreement with the insurance company instead of an upfront payment. This percentage, in Texas can be no more than 10% of the total amount of the claim. Ask your Public Adjuster what his fee is and make sure you understand fully. Some Public Adjusters will charge you based on the entire claim amount – no matter how much(or little) extra they were able to get for you, while others only charge you a percentage of the extra money they get for you. Payment is collected by the adjuster following your acceptance of the insurance company's final payment offer and receipt of the claim payment.

When is the ideal time to engage the services of a public adjuster?

The sooner, the better.  The claims and repair process can be time-consuming. And, while a Public Adjuster can be hired at any stage of this process, getting one involved early on can give a homeowner peace of mind and make the entire process less stressful for them. If, however, you’re already well into the process, your claim is settled and then additional damage is discovered during repairs, hiring a Public Adjuster to assess the total cost becomes your best option.

Quick Guide – How to Choose the Right Public Adjuster:

Selecting an appropriate Public Adjuster is crucial for the success of your insurance claim. To ensure you make the most informed decision, follow this quick guide:

Consider the Adjuster’s Experience with Your Specific Claim Type

Opt for an adjuster with a track record of handling claims similar to yours. Their experience in navigating the nuances and potential challenges specific to your situation can significantly enhance the claim resolution process.

Verify Licensing and Credentials 

Ensure that the Public Adjuster is licensed in your state and possesses the certifications they claim to possess. Confirming their professional credentials guarantees that you are engaging with a qualified expert.

Assess Communication and Availability

Your chosen Public Adjuster should be easily accessible to answer your questions and keep you informed throughout the process. Evaluate their communication style to ensure it aligns with your preferences.

Understand the Commission Structure

Clearly understand the fees involved and ensure that you are comfortable with the charged percentage. Comparing fees across different adjusters enables you to identify a fair and reasonable rate.

Carefully Review the Contract 

A well-defined and transparent contract will outline the provided services and associated fees. Take the time to meticulously review the contract, and don't hesitate to seek clarification on any ambiguous points

Public Adjusters are a homeowner’s best friend when it comes to dealing with their insurance company. Having damage to your home is stressful and difficult. Working through the claim process and getting repairs can be frustrating. As you work through the process, you don’t have to just humbly accept the settlement. Get hold of someone who is willing to fight for you! Contact a local Public Adjuster.  Go to your browser and type “Public Adjusters near me” and give one a call or text - or shoot them an email.