Do I Need A Public Adjuster?
In February, I heard this question often times as I was ending up in property owners along the hurricane damaged New Jersey shoreline from Wildwood in South Jersey to Seaside Heights and neighboring towns until I was stopped by the National Guard going into Mantoloking. I learned an essential fact. Most property owners either didn’t know exactly what a public claims adjuster was OR didn’t know why they would need the help of a Public Adjuster.
Let’s start out with the definition.
“A public adjuster is an insurance claims adjuster (negotiator) who advocates for the policyholder in appraising and negotiating a claimant’s insurance claim. Irrespective of attorneys and the broker of record, public adjusters licensed by state departments of insurance are the only real type of claims adjuster that will legally represent the rights of an insured during an insurance claim process. A public adjuster is likely to be most beneficial when it’s clear that the insurer will pay the claim and the only real issue is the appropriate identification [of the damage] and valuation of the loss. Primarily they appraise the damage, prepare an estimate and other claim documentation, see the policy of insurance to determine coverages, and negotiate with the insurance company’s adjuster.”
The Public Adjuster’s main responsibilities are:
· If business owner – Evaluate interruption losses and other extra expense claims
· With Owners input – Determine values for settling ALL covered damages
· Prepare, document and support the claim on behalf of the insured
· Negotiate a settlement with the insurance company on behalf of an insured
· Re-open a state (supplemental) – Negotiate for more cash if a difference is located after the claim has been settled
Although it is not necessarily clear whenever a policyholder may benefit from using a Public Adjuster, the most benefit is probably be realized if they are engaged immediately after an amazing damaging event, such as Hurricane Sandy’s horrific pounding on the New Jersey shore areas, the high degrees of flooding and 60+ mph gusting winds.
It is very important to notice that the insurance plan itself is written in a language what we call Technical English, published by the Insurance Companies… for the Insurance Companies. There’s much “wiggle room” for interpretation, both on the insurance company’s standpoint and the property owner’s. This wiggle room means monetary negotiations between the Public Adjuster and the Insurance Adjuster.
By means of one of these, let’s speak about “Wave Velocity” ;.Remember when the children were in the bathtub splashing about, then when they got out, the water level lowered and settled. That became the “scum line” (which you’d to scrub off), but the water have been much higher. “Wave Velocity” could be the phenomenon of ocean salt water and the bay saltwater coming inland from all directions (seeking its own level) causing waves from 6″ to 12″ and often times higher. Salt water includes a scouring effect and does not show how high the water splashed before the water settled and formed your “scum line” or water line. This water line now becomes the whole “foundation” for your flood claim settlement according to the insurance company’s adjuster. The Public Adjuster knows the damage line is much higher. Many times this damage isn’t readily apparent but 3-6 months after the hurricane, the damage will begin to manifest.
The Wave Velocity concept is essential to owners where their water line was just beneath their floor joists, or flooring, insulation, windows, air conditioning equipment, etc. and due to “capillary suction” or “wicking”, salt water that splashed up to these areas, insulation is likely to be wet, flooring may begin to warp or cup, the air conditioning equipment will quickly rust badly. The insulation just above the water line is soaked and would need to be replaced; floor joists and subfloor would need to be mold mitigated. Usually the insurance company’s adjuster WILL NOT volunteer this information, either because he or she has not been trained about this phenomenon OR they have been trained NOT to volunteer this information. This does open a can of worms for negotiating.
Public Adjusters, along with their professional advisers, i.e. structural engineers, general contractors, technical advisers, etc. can, often times, find damages which can be overlooked by the insurance adjuster, (no, not since they are EVIL) but because they could be newly trained, or extremely overbooked or perhaps plain overworked. Insurance Adjusters are generally rushing to finish, get the task done and move ahead to the next of their many scheduled appointments. Also, the insurance adjuster might not get around to submitting their report on the owner’s property for a lot of weeks or months later, leading to more damaged items missing, overlooked or underpriced. Public Adjusters work for the policyholder and “COMMIT” themselves and their years of experience to the policyholder’s claim to “MAXIMIZE” each legitimate item. Think about this perspective: Pay the Public Adjuster $X amount or LOSE $3X-$4X-$5X MORE to the Insurance Company!
However, any moment during negotiations with the insurance company and even after having a settlement has been received by the insured, a Public Adjuster may manage to negotiate for a greater amount if additional damages have developed or have already been discovered.
There are other avenues open to the Public Adjuster if the 2 parties cannot acknowledge the full total value of the claim. The Public Adjuster would then interest the Supervisor or upper management. If that didn’t resolve the dispute(s), the Public Adjuster would then necessitate an “Appraisal” ;.Each party would hire an independent appraiser to determine the worth of their respective claim. Usually this solves most disputes and each party feels they have won. If the Appraisal Process fails to solve their differences, then there is arbitration and/or lawsuit, which would be the absolute last resource and is extremely frustrating and expensive.
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