Daily Archives: December 1, 2010

Do insurance companies hate public adjusters?

A good public adjuster can cost an insurance company serious money.  When you file a claim with your insurer, the settlement amount gets decided solely by the insurance company based on the information in your claim and on their own adjuster evaluation of your case. So the insurance company  is in a great position.  Most policyholders have a hard time negotiating with the insurance company: they don’t understand a lot of things related to that policy and their rights, so for the insurer is quite easy to convince them to sign up for an underestimated settlement.

A public adjuster, on the other hand, will perform an independent assessment of the losses, will help you understand your rights and file your claim properly, will help collect the supporting evidence to substantiate the claim while also having the necessary expertise to negotiate with the insurance company from the same level. Hiring a public adjuster generally increases someone’s claim payment by a significant amount, and thus cutting into the insurance company profits.

Let’s take a short example: Susan M. and her family were on a trip when a pipe broke and the first floor of her house was flooded. The damages were substantial, but the claim adjuster from the insurance company said the damage was Susan’s fault, because she didn’t fix the water pipes in time. So, the insurance company agreed to pay only a fraction of what it would cost to repair the damages.  However, Susan decided to hire a Public Adjuster.   He demonstrated to the insurance company that Susan was properly maintaining her property and the pipe break was an accident. The new settlement was five times larger than what the insurance company initially agreed to.

So will your insurance company hate it if you hire an public adjuster? You bet!  But if you want you a fair settlement from your insurance company, you must hire your own public adjuster.