Michael S., Former Builder & Real Estate Investor
You can but it may not be in your interest to wait. You can hire a public adjuster at any point in time if you are not satisfied with the insurance company’s settlement offer. However, many Public Adjusters are not as interested in handling claims late in the game because the insurance company’s position may be more difficult to improve upon. Also, resolving disputes late in the process will further delay the settlement and may even result in policy appraisal. Appraisal or arbitration, requested by the insured or the insurer, delays the settlement even further. Please remember that your insurance agent will not be handling the claim for your insurance company or adjusting your loss. The insurance company’s claim adjuster and your agent are directly or indirectly working for the insurance company, not for you!
Unfortunately you don’t, but if you handle the claim on your own you will never truly know if you are getting a fair settlement either. Investing some time to learn about what public adjusters do by talking to one with test proven experience will give you a better understanding of the value they bring to your claim process and eventual settlement. In addition to increasing the value of the claim, at the very least, a public adjuster is providing a valuable service that will enable you to use your time more effectively.
This question is an important one to ask and the answer needs to be considered carefully. Every customer wants the same thing – the very best service at a competitive price. All public adjusting firms and their personnel are not equal, and they operate quite differently. You should identify what is important to you before selecting a public adjuster. You can begin by identifying the skills, background and experience of the firm, as well as the individuals that want to earn your confidence before awarding them your business. It is important that you choose wisely!
Public adjusters are paid a percentage of the settlement amount. The fee is negotiable but based upon several factors: the size of the loss, when the public adjuster is hired, and the expenses customarily incurred to present the claim, i.e., antique and fine arts appraisers, construction experts, and etc. Public adjusters are paid their contingency percentage when the claim is agreed upon and settled. When the insurance company issues payment to the insured, the public adjuster is entitled to be paid the percentage fee at that time.
Public adjusters are licensed by the California Department of Insurance and are hired by the insured to prepare, present and resolve their claims for loss and damages covered under their policy. Many attorneys do not specialize in first party property insurance claims and those that do often charge more than a public adjuster, if they are working on a contingency fee basis. Contractors are not unbiased nor disinterested experts when it comes to evaluating property damages, and more often than not, they do not have the wherewithal or proper licensing to represent an insured. If the insurance company has their own adjuster, cost consultants and/or contractors to bid repairs, they do not have to accept or recognize a contractor as the “legitimate” representative of the insured.
Public Adjusters are hired to provide a “value-added” service. The skill-set, time and talent of the individual(s) adjuster(s) handling your claim is a crucial factor in determining the outcome. You will want your file to get top priority and attention, so you should make sure you are dealing with the individual that is going to personally handle your claim before hiring the company. Sales professionals that do not handle claims cannot account for the availability of their colleagues, particularly if they are commissioned sales professionals, motivated to take on business regardless of staff availability. Public Adjusters handling too many claims may limit the time and attention they give to your claim!
You don’t, but you should! If a sales representative tells you that they will be handling your file, ask them to provide you with names and contact information for several recent or current clients they are assisting. You can then call them and verify that they are legitimate referrals for that person, and not just a “company” referral, before hiring them. A public adjuster “sales professional” that misrepresents their firm, is probably not the public adjuster you want to sign with anyway, since the claim will not be handled by them but by someone else.
We only take on new business when we are able too! As a result we limit the number of new claims we take on so we can effectively service them. In doing so we are provide our client(s) with the time and focused effort their claim file requires, as well as responding to time sensitive goals and objectives. Public adjusters are required to hold an individual California Department of Insurance Public Adjuster’s license to practice in California. Although we are licensed to practice throughout California, we handle claims primarily in the Bay Area.
This question is not always discussed in advance of the policyholder making a decision to hire a public adjuster. If a policyholder cancels a signed contract with a public adjuster prior to the job being completed, but after the 72-hour right of cancellation is past, the legal obligation for payment is based upon “quantum merit”. This Latin term suggests that the public adjuster would be paid for his or her time on an hourly basis after a very specific accounting of their time, effort, and expense is presented and agreed upon, by the insured. When the reason for termination is defined and there is also legitimate cause, the insured may not be liable to pay the percentage contingency fee.