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Should You Hire a Public Adjuster?
The Ultimate Guide
Finding your home damaged after an unexpected insurance loss can be incredibly stressful. You likely filed an insurance coverage claim seeking compensation to repair or rebuild. However, getting fully and fairly compensated by your insurance company can be an uphill battle. Hiring an experienced insurance expert is highly recommended to improve your chances of maximizing your claims payout. Your other alternative is to rely on the company adjuster, who is never 'on your side.'
Public adjusters are trained and licensed professionals who understand insurance products and work solely for policyholders, not insurance companies. They level the playing field against the insurer’s adjuster, whose goal is minimizing what the insurance company pays out. An experienced public adjuster assesses damages, documents claims, negotiates with insurance companies, and fights for you to receive the complete cost of repairs covered under your policy.
Some ask if they'll know when they should hire a public adjuster. Believe me, you'll know.
Remember, public insurance adjusters work for you, not the insurance company.
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What is a Public Adjuster
A public adjuster is a trained insurance claims professional who works independently on behalf of the policyholder, not the insurance company. Public adjusters have extensive knowledge of the insurance industry, common policies, and general construction requirements. They use their expertise to assess the full extent of damages properly, gather necessary documentation, negotiate claim settlements, and generally advocate to get their clients the most compensation under their policy.
They’re different from the adjuster the insurance company assigns. The insurance company's adjuster works for the benefit of the insurer, not the policyholder. Their role is to minimize the amount the insurance company has to pay for the claim.
An experienced public insurance adjuster works only for the insured, not the insurer. They aim to ensure you receive fair compensation for all covered damages. Public adjusters are licensed professionals with the expertise to ensure policyholders get every dollar they are entitled to under their homeowner's policy after a loss.
Key traits of reputable public insurance adjusters include:
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Extensive insurance expertise in homeowners insurance
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They know how to file insurance claims
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A public adjuster’s fee that is not set to the maximum 12.5 percentage NYS allows
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Professionally licensed by the state
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Receives compensation only from the final settlement amount
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They tell you when or when not to hire a public adjuster
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They belong to a local or national association
The right public insurance adjuster saves policyholders stress, time, and effort while maximizing compensation for damages or loss under their insurance policy. Their assistance from start to finish is invaluable after experiencing a property insurance loss.
Kevin Godfrey, Public Insurance Adjuster
When to Hire a Public Adjuster
Here are some of the most common situations when to hire a public adjuster and when that can benefit you:
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For large or complex damage - If your property has significant damage from a major fire, hurricane, flood or other disaster, the process will likely be long and complicated. Having a professional public adjuster represent you can make the process less stressful. They have immense experience with large losses and the insurance industry and know what needs to be done to correctly assess the total cost of repairs.
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If you disagree with the insurer's damage estimate - After a large claim, the insurance company will send out an adjuster to survey damage and provide a repair cost estimate. If you believe their assessed damages are too low, a public adjuster can provide a second opinion and ensure everything is noticed. They will fully inspect the property and provide their own unbiased damage assessment.
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To contest a claim denial - Carriers sometimes deny claims outright, often for reasons policyholders don't understand. A public adjuster has a strong command of how carriers work and local policies. They can review the policy, determine if the denial was warranted, and fight the decision on the homeowners behalf.
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If the claim stalls - Some files get unexpectedly delayed, dragged out, or even ignored by insurers. A public adjuster knows timelines and legal requirements. They can light a fire under the carrier to keep the flow moving forward.
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To negotiate a higher settlement - Most public adjusters have significant time and experience dealing with company adjusters. They understand negotiations and the documentation needed to justify compensation amounts. They negotiate aggressively to reach a fair and full claim settlement on the policyholder's behalf.
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For complex policy or coverage questions - Homeowners insurance policies can be dense and difficult to understand fully. Public adjusters are insurance professionals trained to interpret policy provisions and determine what damage is covered. If you are unsure what your policy covers, they can provide clarification.
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If you need more time to handle the claim - For busy professionals, managing contractors and insurance adjusters can require a ton of time. A Public adjuster handles all aspects of the claim while you focus on your daily responsibilities.
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After a dispute with the insurer- Sometimes, claim disputes can't be settled between the policyholder and the insurer. If you are in litigation over a denied claim or low settlement, a public adjuster can represent you and provide expert testimony on best practices.
Hiring a public adjuster is as easy as calling Kevin Godfrey at 516-410-0164.
The Insurance Company
The insurance company assigns its own claims adjuster to handle your loss. This adjuster works for the insurance company's benefit, not you, the policyholder. They aim to minimize the payout the insurance company has to provide for your home insurance settlement.
The insurance company's adjuster, often they hire independent adjusters - those that don’t work directly for the carrier, will inspect damages, estimate repair costs, and make a settlement offer based on those assessments. Their damage estimates and repair cost calculations likely will be lower than they should be. This allows the insurance company to retain more of your premium dollars and avoid a fair payout.
An experienced public adjuster works only for you, not the insurance company. They make sure to identify all covered damages and accurately assess the full cost of repairs. The public adjuster negotiates aggressively to get you a fair and maximized settlement, not the minimized amount the insurer wants to pay.
They are required by law to be trained insurance professionals, whereas an independent insurance professional is often not - only understanding the basic fundamentals of the process.
Difference Between a Public Insurance Adjuster and an Insurance Company Adjuster
The main difference between a public insurance adjuster and a carrier insurance adjuster is who they represent. A carrier's adjuster is an insurance company employee assigned to assess damages, estimate repair costs, and settle claims. They represent the interests of the insurance company, not the policyholder. Their goal is to minimize the homeowner's insurance claim payout.
A public insurance adjuster is an independent claims professional hired by the policyholder to represent their interests alone, often for their homeowners insurance claim. Public adjusters work only for the insured to obtain the maximum claim settlement and ensure the policyholder receives fair compensation for damages. While insurance adjusters seek to limit payouts, public adjusters use their expertise to get the complete reimbursement they are owed to policyholders.
What Happens During a Large Loss
The main difference between a public insurance adjuster and a carrier insurance adjuster is who they represent. A carrier's adjuster is an insurance company employee assigned to assess damages, estimate repair costs, and settle claims. They represent the interests of the insurance company, not the policyholder. Their goal is to minimize the homeowner's insurance claim payout.
A public insurance adjuster is an independent claims professional hired by the policyholder to represent their interests alone, often for their homeowners insurance claim. Public adjusters work only for the insured to obtain the maximum claim settlement and ensure the policyholder receives fair compensation for damages. While insurance adjusters seek to limit payouts, public adjusters use their expertise to get the complete reimbursement they are owed to policyholders.
Insurance Claims
Most PAs handle a high volume of cases each year. Their primary role is assessing damages, documenting them thoroughly, and negotiating fair settlements for policyholders from insurance companies.
A public adjuster has deep experience guiding various types of claims through the entire process to an appropriate resolution. These include fire, flood, tornado, hurricane, and all other property insurance damage covered under a homeowners policy.
Their expertise applies to losses of all sizes, from minor water damage to extensive fire damage. For significant losses, a public adjuster knows how to identify all damages, properly estimate repair costs, and fight for full reimbursement, resulting in a final claim payout.
How Public Insurance Adjusters Works
When you hire a public adjuster after filing, you sign a contract granting them legal permission to represent you. They take over communication and negotiation with the insurer while you focus on your daily responsibilities. They receive payment only after you receive your claim insurance settlement.
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Investigating Damage - A thorough inspection of the property is one of the first steps a public adjuster will take. This allows them to fully understand the extent of damage and identify any issues the insurer's adjuster may have overlooked.
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Gathering Documentation - They'll gather necessary documents such as repair estimates, contractor invoices, payroll records, expense receipts, and any other paperwork needed to justify amounts for reimbursement.
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Filing Supplemental Claims - If additional damage is found, public adjusters can file supplemental claims with the insurer seeking compensation for uncovered costs.
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Negotiating with Insurers - Public adjusters are experienced in claims negotiations. They advocate forcefully for fair reimbursement for damages, presenting documentation to insurers to justify claims amounts.
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Managing Contractors - Many public adjusters have connections to reputable local contractors. They can assist with managing necessary repairs and communication between contractors and insurers.
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Answering Questions - Throughout the claims process, public adjusters can answer their clients' questions regarding their insurance policy, damage assessments, status, and settlements.
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Settlement - The public adjuster will aggressively pursue compensation for all covered damages. They will attempt to reach a full settlement or litigate the claim if the insurer does not offer fair compensation. Their ultimate goal is maximizing the claims payment their client receives.
For complex losses or after a disaster, the claims process can stretch on for months. A public adjuster will provide ongoing representation and work the claim to settlement. Their insurance expertise eases the policyholder's burden throughout the stressful claims process.
How Much Does a Public Adjuster Cost?
Public adjusters work on a contingency fee basis. This means they only get paid if they successfully secure a settlement for the policyholder.
The standard public adjuster fee structure is 7-10% of the total claim settlement amount rather than an hourly rate. For example, if the public adjuster negotiates a $100,000 payout, their fee would be $7,000 - $10,000.
Most states regulate the maximum percentage a public adjuster can charge. Their fee will also vary depending on the size of the total loss, the negotiations' complexity, and the adjuster's experience. In New York State, a PA's maximum fee is 12.5% of the claim amount.
Getting a few estimates from licensed professional public adjusters in your area is a good idea. Make sure you understand their full fee structure and have a written contract before work begins. Reputable public adjusters will clearly explain their rates and services for the fees charged.
Although public adjuster fees may seem high initially, their expertise often results in a significantly higher settlement and covers their costs. The policyholder usually gets a larger payout after paying the adjuster's percentage fee.
If you have a homeowners insurance claim and want to retain a public adjuster due to a large claim or home insurance issue, call Kevin Godfrey, Long Island Public Adjusters, LLC at 516-410-0164.
Are Public Adjusters Worth the Cost?
The major benefit of hiring a qualified public adjuster is they can typically negotiate much larger claim settlements. This means the policyholder receives more compensation to repair their loss fully.
Some key ways public adjusters get policyholders more money:
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File for the homeowner (i.e., waiting on hold for 45 minutes)
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Thoroughly investigate damages the insurer may overlook
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Provide accurate damage repair estimates
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Effectively negotiate a higher payout
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Catch missed coverage amounts or endorsements
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Ensure proper payment for code upgrades
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Identify and take advantage of state regulations, coverages, and endorsements
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Achieve a larger percentage than if the homeowner settled the claim on their own
Statistics show that, on average, public adjusters can increase homeowner payouts by 745% over what the insurer initially offered.
For severe property damage, it is common for a seasoned public adjuster to negotiate 30%, 50% or even 100% higher settlement amounts. Their ability to maximize claim payments usually earns back their fee multiple times over.
However, results will vary depending on the individual adjuster and claim details. There is always a risk that the public adjuster cannot negotiate additional money, in which case their fee expenses the policyholder money for no gain.
Tips for Hiring a Public Adjuster
If you decide to hire representation for your homeowners or business claim, make sure you choose a reputable and seasoned public adjuster:
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Check credentials - Only work with licensed public adjusters and verify the license is valid in your state.
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Look for experience - Ask about years of experience, continuing education, and professional designations.
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Seek references - Reputable public adjusters will provide references from previous clients. Check some references to understand their working relationships.
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Research reputation - Look for online reviews, complaints with the Better Business Bureau, and disciplinary actions filed with the state licensing department. Avoid adjusters with negative marks.
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Interview thoroughly - Meet or speak directly and ask lots of questions to understand services, fee structures, and qualifications fully. Make sure you have a good rapport.
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Get fee estimates - Have multiple public adjusters provide fee estimates in writing for comparison. But don't choose based only on the lowest cost.
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Read the contract carefully - Understand the adjuster's rates, when/how fees are paid, services provided, and cancellation terms before signing an agreement.
If you need to hire a PA to achieve a larger settlement, call Kevin Godfrey, Long Island Public Adjusters, at 516-410-0164.
Pros of Hiring a Public Claims Adjuster
There are many benefits to hiring a public adjuster to assist with a claim. A major pro is that they are experienced professionals who successfully negotiate claim settlements.
Most Public adjusters have extensive training in assessing damages, estimating repair costs, understanding insurance policies, filing detailed claims, and dealing with insurers. They have negotiated hundreds if not thousands of claims on behalf of policyholders.
This expertise allows public adjusters to secure significantly higher payouts compared to what an individual without their specialized skills could obtain.
Statistics show public adjusters increase claim payments by over 700% on average compared to negotiating alone with an insurance provider. Their skills in maximizing reimbursement means hiring a public adjuster can result in thousands more dollars in your pocket for the same homeowners insurance claim.
The Bottom Line
Filing a significant homeowner claim can be extremely draining and difficult for policyholders. Public insurance adjusters are often worth the cost because they are experienced professionals who work solely for homeowners to minimize stress and maximize the amount they recover. Their expertise and ability to get insurers to pay top dollar for damages means homeowners receive fair compensation to repair damage or rebuild after a loss.
Public adjusters are unnecessary for smaller routine losses you are comfortable handling yourself. But they can provide immense benefits if you've sustained major property damage, are in dispute with an insurer, or want an advocate to represent your best interests. Just be sure to hire a licensed, reputable public adjuster who clearly explains their fee structure before agreeing to representation.
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Long Island Public Adjusters, LLC
34 E. Main St.
Ste 347
Smithtown, NY 11787
Southampton Public Adjusters
26 Hill St.
Southampton, NY 11968