Public Adjusters: Who Are They?
We write about them a lot, but who exactly are these public adjusters and what’s their job description?
A public adjuster is a state licensed insurance professional that specializes in managing every aspect of an insurance claim on the behalf of the policyholder, claimant, or insured. These are the hardworking men and women who negotiate rigorous insurance claims and are hired directly by the insurance policyholders. Think of them as lawyers that represent the general public. They are here to serve.
Above all, it’s their job to figure out the exact amount of money that the insurance company needs to pay up. They do this through hardcore investigation, inspection, appraisal and adjustment of insurance claims. They represent the best final interests of the person who is insured.
Policyholders with public adjuster representation typically received higher settlements than those without public adjusters. Policyholders that filed catastrophe claims in 2008 and 2009 generally received larger insurance settlements than policyholders that did not hire these persons. The typical payment to a policyholder represented by a public adjuster was $22,266 for claims filed in 2008 and 2009 related to the 2004 hurricanes (see Exhibit 6). In contrast, policyholders who did not use a public adjuster received typical payments of $18,659. The difference in payments was larger for claims related to 2005 hurricanes, with public adjuster claims resulting in payments that were 747% higher.
Here are the three types of insurance claim adjusters that you should be aware of when diving into the complex world of insurance.
- Staff Adjusters: Staff adjusters are hired by the insurance company and often work within the company itself.
- Independent Adjusters: Independent adjusters are freelancing contractors that are then hired by the insurance companies to deal with claims.
- Public Adjusters: The policyholders themselves and not the insurance company hire public adjusters.
Public adjusters come in all forms which is why it’s important that you go after one that specializes in a specific category. For example, floods, water damage, fire and smoke, wind and storms, roof damage, etc. So which one pertains to you?
It’s important that you get the most out of your claim and that’s why hiring a public adjuster is the way to go.
If you hire a public adjuster, it could actually be profitable!!!