Would you hire a public adjuster?

[Strategy101]

Question for licensed agents. As a licensed insurance agent, would you hire a public adjuster to assist with your personal loss? Or do you feel skilled enough as an agent to interpret your policy and negotiate the maximum claim benefit? Asking because I am dealing with a water damage loss that occurred in my basement the other day. While that part of my basement was not in use, there is a kitchen that includes cabinets, gas stove, refrigerator and a partition wall that have all been affected. I called Servpro out and they stated the water is Cat 3 (dirty contaminated water) and everything it's been in contact with will need to be removed. He initially said it would be like a 6 or 7 thousand dollar expense but now I'm thinking maybe I should get an adjuster to assist. Still waiting for my insurer to make a determination. I would think the demo alone would be at least $1000. And then replacing cabinets, a stove, refrigerator, and the wall would be at least $10k. Just want to make sure I am getting everything I'm entitled to especially since this is the very first time I've filed a claim and not to mention the likelihood of my rate increasing or being dropped altogether.

What do you guys think? Hire an adjuster or no? btw, I have been licensed in p&c for a decade and while I have some confidence in my ability to interpret my policy, I am wondering if a public adjuster is worth getting.

Thanks in advance

 

[fed up]

NEVER! The adjuster will take more from whatever settlement than they are worth. Get three estimates on top of the insurance adjuster's estimate but not a public adjuster.

 

[WMSG]

I am not a P/C producer, however, I have long been immersed in the risk management/protection aspect of wealth management, estate planning, etc., for my clients. I am actively involved in the entire P/C process with my clients and have been involved in innumerable claims. That said, I've had two major personal losses/claims in my life, and I hired an adjuster each time. It was well worth it both times. Both ended up as no-cost results for me, and even though I had great carriers insuring my property, and they were great to deal with, the adjuster still was well worth it and provided a great deal of, and very quantifiable, value. One claim I had was approximately $10K, while the other was substantially larger.

As I am sure you well know, being an agent is different than being a (claims) adjuster. You can be extremely skilled, an expert, as an agent, but not every single expert agent is as well versed in policy language, interpreting same, and everything else, especially the claims process and claims management. Claims involve an entirely different set of variables, skill-set(s), etc.

Being a P/C producer, why not meet with an adjuster and see what he/she says. You can certainly see through the sales-hype, and if there is sales-hype, perhaps you are talking to the wrong adjuster. Do you personally know any? Any friends who are adjusters? Regardless, meet with one, see what they say, ask for the clarifications and quantification(s) as to benefits, advantages, etc. -- and determine whether or not it is worth it for you and your specific situation. As Sy Sims used to say, "An educated consumer is my best customer."

All the best.

 

[sshafran]

Question for licensed agents. As a licensed insurance agent, would you hire a public adjuster to assist with your personal loss? Or do you feel skilled enough as an agent to interpret your policy and negotiate the maximum claim benefit? Asking because I am dealing with a water damage loss that occurred in my basement the other day. While that part of my basement was not in use, there is a kitchen that includes cabinets, gas stove, refrigerator and a partition wall that have all been affected. I called Servpro out and they stated the water is Cat 3 (dirty contaminated water) and everything it's been in contact with will need to be removed. He initially said it would be like a 6 or 7 thousand dollar expense but now I'm thinking maybe I should get an adjuster to assist. Still waiting for my insurer to make a determination. I would think the demo alone would be at least $1000. And then replacing cabinets, a stove, refrigerator, and the wall would be at least $10k. Just want to make sure I am getting everything I'm entitled to especially since this is the very first time I've filed a claim and not to mention the likelihood of my rate increasing or being dropped altogether.

What do you guys think? Hire an adjuster or no? btw, I have been licensed in p&c for a decade and while I have some confidence in my ability to interpret my policy, I am wondering if a public adjuster is worth getting.

Thanks in advance

Years ago I was in the roofing / siding industry and I dealt with carrier adjusters.

I worked with homeowners on over 2.5 million in claims.

Adjusters: Some were good but the majority were truly horrible and manipulative. They can act as friendly as possible to the homeowner - giving the idea that they will help and do what's right - then turn around and truly act in bad faith.

Out of all the claims that got approved - I'd say 10-15% were properly approved right away. The other 85% took skill, arguments, and persistence.

While dramatized a bit - check out the show "Insurance Wars" - it was a show in FL that you can now see on YouTube. I can say from experience that the carrier adjusters are truly bad as a rule of thumb.

If you trust the adjuster sent out by the carrier - you've already lost. Period.

 

[sshafran]

Years ago I was in the roofing / siding industry and I dealt with carrier adjusters.

I worked with homeowners on over 2.5 million in claims.

Adjusters: Some were good but the majority were truly horrible and manipulative. They can act as friendly as possible to the homeowner - giving the idea that they will help and do what's right - then turn around and truly act in bad faith.

Out of all the claims that got approved - I'd say 10-15% were properly approved right away. The other 85% took skill, arguments, and persistence.

While dramatized a bit - check out the show "Insurance Wars" - it was a show in FL that you can now see on YouTube. I can say from experience that the carrier adjusters are truly bad as a rule of thumb.

If you trust the adjuster sent out by the carrier - you've already lost. Period.

One more example - after Florence, my claim was close to $4,000. Pretty small claim!

Immediately the adjuster called and gave me a whole long speech about why it was "out of her hands" and "they could only approve $1,500" and she was "so sorry for the loss and the hurricane" and "it was just company policy to not pay for x y & z."

She did not know that I read, examined, and thought through every aspect of the claim prior to submitting it. I literally told her to open the policy and read page x to me, which was the basis of the claim.

I got the money. But they screwed thousands and thousands of people.

 

[tikibarrister]

While dramatized a bit - check out the show "Insurance Wars" - it was a show in FL that you can now see on YouTube.

Wow, how did I miss this...will be watching!

 

[adjusterjack]

Hire an adjuster or no?

Hell no. Before I retired my claims territory included Florida and New Jersey, two states rife with public adjusters. The vast majority of them were scammers.

Look at it this way. It costs you $10,000 to repair your damage. The PA gets you $10,000, takes his 15% and leaves you with $8500 (less your deductible) to repair your damage. Would you hire him knowing that up front? Of course not.

So the PA tells you he can get you $12,000 to cover his fee and the deductible. You cheerfully hire him. He writes up an inflated estimate, presents it to the insurance company and threatens litigation to get the money. What do we call an inflated estimate, class? We call it insurance fraud.

Then you get a savvy claim rep who says "Take a hike, PA, the repair costs $10,000 and that's what we cover. Sue if you like."

PA goes back to you and profusely apologizes for his failure but collects his 15% anyway. You can't fight it because you have a contract with him authorizing him to get the check and pay you net after his commission is removed.

I would think the demo alone would be at least $1000. And then replacing cabinets, a stove, refrigerator, and the wall would be at least $10k.

I used to get that all the time from my policyholders. My response: "How would you know? Are you a contractor? No. Have you had a contractor out yet? No. Well, get me some estimates from a licensed contractor and will go from there."

My advice to you is get rid of Servpro and get a couple of contractors in to give you repair estimates. Submit them to your insurance company claim rep and ask that the company adjuster come out and verify the damage. Or, get the company estimate and present it to contractors and see if they can do the work for what is in the estimate.

Also keep in mind that, like auto insurance, there is such a thing as a "supplement." If the initial claim settlement doesn't cover the repairs because hidden damage is found, the claim rep will re-open the claim and issue another check. I can't tell you how many times I have done that.

As for that Florida TV Show "Insurance War" - it's produced by and for public adjusters for the sole purpose of vilifying insurance companies.

 

[adjusterjack]

I can say from experience that the carrier adjusters are truly bad as a rule of thumb.

And I say that the roofing/siding industry has it's own share of rip off artists. Faced down a bunch of those scammers in my time.

 

[sshafran]

Hell no. Before I retired my claims territory included Florida and New Jersey, two states rife with public adjusters. The vast majority of them were scammers.

Look at it this way. It costs you $10,000 to repair your damage. The PA gets you $10,000, takes his 15% and leaves you with $8500 (less your deductible) to repair your damage. Would you hire him knowing that up front? Of course not.

So the PA tells you he can get you $12,000 to cover his fee and the deductible. You cheerfully hire him. He writes up an inflated estimate, presents it to the insurance company and threatens litigation to get the money. What do we call an inflated estimate, class? We call it insurance fraud.

Then you get a savvy claim rep who says "Take a hike, PA, the repair costs $10,000 and that's what we cover. Sue if you like."

PA goes back to you and profusely apologizes for his failure but collects his 15% anyway. You can't fight it because you have a contract with him authorizing him to get the check and pay you net after his commission is removed.



I used to get that all the time from my policyholders. My response: "How would you know? Are you a contractor? No. Have you had a contractor out yet? No. Well, get me some estimates from a licensed contractor and will go from there."

My advice to you is get rid of Servpro and get a couple of contractors in to give you repair estimates. Submit them to your insurance company claim rep and ask that the company adjuster come out and verify the damage. Or, get the company estimate and present it to contractors and see if they can do the work for what is in the estimate.

Also keep in mind that, like auto insurance, there is such a thing as a "supplement." If the initial claim settlement doesn't cover the repairs because hidden damage is found, the claim rep will re-open the claim and issue another check. I can't tell you how many times I have done that.

As for that Florida TV Show "Insurance War" - it's produced by and for public adjusters for the sole purpose of vilifying insurance companies.

You assume adjusters are giving a fair shake and acting in good faith.

But we both know.... many are not.

Re: the show - it's fantastic! Haha.

And I say that the roofing/siding industry has it's own share of rip off artists. Faced down a bunch of those scammers in my time.

I would agree with this too. Everyone wants to get theirs. Even contractors & Public Adjusters.

If the OP is an agent and can read the policy and has a willingness to fight - then no PA needed. (like my claim for 4k which was immediately denounced and reduced to $1,500 -- only to be approved after a bunch of back and forth.)

Bottom line: If you don't know what you are doing - you'll lose.

 

[sshafran]

Then you get a savvy claim rep who says "Take a hike, PA, the repair costs $10,000 and that's what we cover. Sue if you like."

And this is 99% of the problem - the policy does not say that Xactimate (or a dumb desk adjuster) determines the price.

You as the insurance company should not determine price - the market determines price. Nor should you dictate which contractor and at what price the work is done. You indemnify - period.