Public Adjuster FAQs

The Facts about PAs and Property Damage Insurance Claims

“When should I hire a public adjuster?”

“Am I required to get my carrier’s approval before I hire a PA?”

“How do I pick a PA or public adjuster if I’ve had a fire, storm, or flood damage?”

These are the types of questions about public adjusters (or “PAs” for short) that people ask themselves after unexpectedly suffering property damages. Homes, rental properties, and businesses typically have insurance policies that provide detailed and widely varied coverage. However, even before filing a claim, there are things to consider. Fortunately, a qualified public adjuster can assist the family or business that has suffered a property loss. By managing negotiations and settlement for the insured, the PA becomes the frontline defense for the policyholder. Hiring a public adjuster increases the likelihood of a final settlement favorable to the insured. A public adjuster can be quite a helpful resource to the family or business that must rebuild as quickly as possible.

“What exactly is a public adjuster?”

Wikipedia describes a public adjuster as someone who “advocates for the policyholder in appraising and negotiating a claimant’s insurance claim.” Laws regulating public adjusters vary from state to state. Most states require public adjusters to be licensed. Also, that license must be kept up-to-date. It’s helpful to be aware that there are a few different types of adjusters. The most crucial difference between a public adjuster and other adjusters is that a public adjuster is the only insurance claims adjuster who represents the interests of the policyholder. Company adjusters, independent adjusters, and your insurance agent typically work for an insurance company. Remember that no matter how friendly these people are, they do not represent your interests. A public adjuster advises and negotiates on behalf of the policyholder. PAs perform these services by charging policyholders a fee that is usually 10-15% of the total settlement. Public adjusters can be useful for policyholders who don’t understand complicated policies. Studies show that policyholders collect more money when PAs negotiate for them. Here in Connecticut, public adjusters can charge up to 10% of the final settlement for a fee. The Connecticut Department of Insurance advises that public adjusters are “legitimate independent property insurance professionals who provide an important service.” 

“My insurance company says they’ve already assigned my adjuster, and I don’t need an outside adjuster.”

Don’t be mistaken about what’s at stake when disaster hits and you need to file a claim. Let’s strip away the sales pitches, and feel-good vibes you get from your insurance agent because you are a customer. The bottom line is this: your policy is a contract written by your insurance company, and they hire adjusters to minimize the bottom-line for the insurance carrier. Don’t fall for the subtle play-on-words some insurance company personnel use to steer you from hiring a public adjuster. A qualified public adjuster is more than “an outside adjuster” – a public adjuster may be the only option other than a lawyer to have someone represent the interests of the policyholder.

“My damage claim looks pretty simple. I’m pretty sure I can handle this without a PA.”

Great! Count your blessings. File your claim, collect your settlement, and move on. However, if you’ve possibly had structural damage or a fire that was big enough to call the fire department, you may have a property loss that’s much more expensive and complicated than you realize at first. The trick is to figure out quickly whether you need help with your claim. If you need assistance, you most likely know it. Just realize that when a public adjuster helps you, your interests come first. Once an insurance company learns that someone who “speaks the lingo” and “knows the ropes” will be representing you, your claim gets handled differently. A good public adjuster can help assess costly damages related to cleaning up and rebuilding and can help expedite a fair settlement and a top-quality restoration. 

Still don’t know whether you need to hire a public adjuster? Here are ten questions that can help you decide:

If you are still undecided about hiring a public adjuster, ask yourself the following questions – the more you answer no, the more you need a public adjuster:

1. Have you ever read your entire insurance policy?
2. Can you find a copy of your insurance policy right now?
3. Do you understand the language in your policy?
4. Are you familiar with the covered perils in your insurance policy?
5. Honestly, have you ever signed a contract without reading and understanding “the fine print”?
6. Did you know that insurance policies are contracts of adhesion? Therefore, judges and umpires tend to decide in favor of the policyholder should such conflict go to court or mediation (f.y.i. in insurance terms “appraisal)?
7. Do you have any recent experience with building or restoration of a structure intended for housing or commercial operations?
8. Do you have time to file a detailed insurance claim with an itemized damage repair cost estimate, and do you have time to follow up when necessary?
9. Do you trust that your insurance company will not cut any corners to reduce the expense of your claim?
10. Have you been able to avoid asking your broker or insurance agent for advice about your claim?

If you answered “no” to less than 3 of these questions, you might be able to do fine without a public adjuster. If you answered no to more than 5 of the above items, you might want to seriously consider hiring a public adjuster to assist you and your family with your claim. If you answered “no” to more than 7 of the above questions, our advice is that you don’t file any substantial claim without the representation of a good public adjuster.

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