Although your home was flattened by a tornado, and your possessions were scattered for miles, you have the burden of proving your loss to your homeowners insurance company. Insurance policies are contracts, and contracts can be stuffed with benefits, conditions and exclusions. If you fail to comply with the terms of that insurance contract, you can significantly delay or diminish your claim. It could even be legitimately denied.
The Public Adjuster
A public adjuster is paid by the insured person for investigating, documenting, processing and negotiating an insurance claim to settlement when that claim arises from a covered risk under the insured person’s insurance contract. They’re ordinarily retained by private individuals or small businesses when homes or commercial establishments are destroyed by covered risks like weather, fire or explosion.
Determine the Need
The first step to take is to determine whether a public adjuster will be worthwhile given the nature and extent of your loss. If you’re drowning from the responsibilities of the well-being of your family, your job and the loss of your home and personal property along with the tedious claim process involved with your insurer, you’ll want to retain a public adjuster to act on your behalf. When a home or business is lost from a disaster, people have more questions than answers. They’re knocked out on their feet and don’t know who to turn for help. Most of them start getting their bearings back when they retain a public adjuster.
Determine Qualifications
Public insurance adjusters are required to be licensed in every state except Alabama, Arkansas, Alaska, South Dakota and Wisconsin. You can confirm licensure with your state’s department of insurance. The National Association of Public Insurance Adjusters (NAPIA) requires high standards of conduct for membership along with continuing education. Public adjusting firms, attorneys and suppliers are permitted to be members. You can be referred to them through the association.
Payment
The same as the value of your home and possessions are negotiable, so is the rate charged by the public adjuster. We talked with Citiwide Adjusters, Inc. who explained, “Be cautious of any requested down payment or hourly charges. They’re highly unusual. Fees charged are ordinarily between 15 and 20 percent of the amount recovered. Small claims might take an inordinate amount of time, so the public adjuster might want to charge as much as 20 percent of the settlement amount.” Larger claims might be less. If a direct offer has already been made before you hired a public adjuster, you can negotiate an excess sum fee for any money that the public adjuster obtains for you over and above that direct offer. Most states place limits on what a public adjuster can charge. Everything is negotiable, but do the negotiating before you sign off on the retainer agreement with the public adjuster.
Communication
Your claim involves your home that has been destroyed or rendered uninhabitable and your possessions that have been lost or destroyed. You’ll want to know, and you’re entitled to know how your claim is progressing. You might want written status reports and periodically view everything that’s been done on your claim. Some public adjusters allow access to all status information over the internet. Others should make that information physically available to you.
You want a public adjuster who is compassionate, knowledgeable, experienced and credible with both you and your insurance company. Your primary considerations are your home or business and your family. Do your homework. There’s always a need for public adjusters, and there are many reputable ones out there.
Sources: http://www.propertyinsurancecoveragelaw.com/2010/11/articles/insurance/three-
reasons-to-hire-a-public-adjuster/
http://www.bankrate.com/finance/insurance/hiring-a-public-adjuster-2.aspx
http://en.wikipedia.org/Wiki/Public_adjuster
