The key difference between an adjuster and a public adjuster is who they work for: Public adjusters represent policyholders and advocate for their interests during insurance claims, while insurance company adjusters work for the insurance carrier and look out for their interests. Public Adjusters are paid by the policyholder, typically on a contingency fee basis earning a percentage of the settlement, whereas company adjusters are paid by the insurance company.
Understanding the difference between an adjuster and a public adjuster
Insurance Company Adjusters:
Employed by insurance carriers either directly or through an Adjusting Firm
Represent the insurance company’s interests
Evaluate claims according to company guidelines and policies
Focus on protecting the insurer’s interests throughout the claim
Public Adjusters:
Licensed professionals hired directly by policyholders
Work exclusively for property owners and businesses
Advocate for optimum claim settlements
Navigate the claims process on behalf of the insured to ensure the claim is paid fairly
What Are The Primary Responsibilities of Public Adjusters vs Insurance Adjusters?
Public Adjusters Focus On:
Documenting all damages thoroughly
Preparing detailed claim estimates
Negotiating for the optimum settlement
Protecting policyholder rights throughout the process
Ensuring all covered damages are included in the claim
Handling paperwork and insurance company communications
Insurance Adjusters Focus On:
Investigating claim validity (should they pay or deny the claim)
Following company protocols and guidelines
Assessing damages according to company guidelines
Determining settlement offers
Preparing an estimate of the damages
Identifying policy exclusions or limitations that could be applied
When Might You Need a Public Adjuster?
Public adjusters become particularly valuable in specific situations:
Large or complex claims: Fire damage, extensive water damage, or other major property losses
Claim disputes: When the insurance company’s settlement offer seems too low
Claim denials: When the reasoning behind a denial does not seem accurate
Commercial properties: Business interruption claims and extensive property damage
Time constraints: When you lack time to manage the claims process yourself
Policy interpretation issues: When coverage questions arise
Key Advantages of a Public Adjuster vs. Insurance Adjuster
Benefits of Insurance Company Adjusters:
No additional cost to you
Direct access to company claims systems
Streamlined communication with the insurer
Quick processing for straightforward claims
Benefits of Public Adjusters:
Professional advocacy for your interests
Expertise in optimizing claim settlements
Thorough damage documentation
Relief from claims process, less stress
Better outcomes for large and complex claims
Industry knowledge of policy coverages and best practices
Do You Always Need Both?
Not necessarily. For minor claims with clear-cut damages, working with just the insurance company’s adjuster may suffice. However, for significant losses or when you feel the insurance company’s offer is inadequate, hiring a public adjuster provides professional representation that can significantly increase your settlement.
In most cases, the insurance company will send their adjuster. However, with new technology being utilized in the claims industry there are times where the insurance company may adjust your claim virtually.
Can I hire a public adjuster after the insurance company has already made an offer?
Yes. Many policyholders hire public adjusters after receiving settlement offers that are below the actual amount needed for the claim. A public adjuster can review the insurance company’s assessment, identify overlooked damages, and renegotiate for a fair settlement.
Will hiring a public adjuster delay my claim?
While thorough documentation takes time, public adjusters often expedite the overall process to recover the proper settlement through their expertise and direct negotiation with insurers. The potential for a significantly higher settlement typically outweighs minor time delays. However, if speed is your goal, there is nothing faster than accepting whatever the insurance company offers you, the issue is that you may not have enough to complete your repairs.
Are public adjusters licensed and regulated?
Yes. Public adjusters must be licensed in most states and are regulated by state insurance departments. They must pass examinations, maintain continuing education, and adhere to professional standards.
How much do public adjusters typically charge?
Public adjusters generally charge on a contingency fee agreement which is based on a small percentage of the claim payments. The percentage often varies based on claim complexity and state regulations. Some states cap public adjuster fees.
Do I need to be present when adjusters inspect my property?
While not always required, it’s beneficial to be present during inspections. If you have a public adjuster, they can represent you during these assessments and ensure all damages are properly presented and documented.
Can I switch from working with just the insurance adjuster to hiring a public adjuster?
Absolutely. Policyholders can hire a public adjuster at any point during the claims process, even if they’ve already been working with the insurance company’s adjuster.
