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If you’re a property owner who is about to file an insurance claim, you need to know about public adjusters. Simplifying the process of filing an insurance claim, a public adjuster (PA) is on your side when it comes to handling your business property or residential property insurance claim.
With extensive experience in insurance, public adjusters help you navigate the often complicated, lengthy, and stressful procedure of settling claims. These claimscan include damages caused by incidents like fire, floods, hurricanes, hail,windstorms, or other natural disasters.
Appointing a public adjuster while filing an insurance claim is essential to safeguard your rights as an insurance holder. Because, unlike adjusters working for insurance companies, roofers, or general contractor companies, a public adjuster exclusively represents you, the policyholder.
Authorized by the Government of Texas, public adjusters act as advocates for policyholders. Most insurance companies have their adjusters or hire independent licensed adjusters to look out for the insurer’s interests. In contrast, a public adjuster is solely focused on safeguarding your rights and interests throughout the claims process.
Most insurance policies also expect policyholders to record and prove their property losses. This task can be challenging, as it requires understanding complicated details like property repair, current replacement costs, losses to business income, and any other essential aspects of property damage. Public adjusters, with their vast knowledge of insurance policies, bring the necessary expertise to make sure that you receive a fair and proper settlement.
Hiring a public adjuster is a smart move to ease the burden and protect your rights as an insurance policyholder in Texas.
Review the Insurance Policy: A PA will first take a good look at your insurance policy. They are extensive and tricky to understand, changing each year with specific conditions for claims. If you don’t meet these conditions, your claim might get denied or settledat less for aproperty loss. A PA ensures that your insurance claim fulfils all your policy requirements.
Documents the Loss Diligently: The PA puts together your claim. This usually comprises of estimates, inventories, photos, and other facts that showcase your loss. They alsoreview the property loss and sendproof to the respective insurance company.
Negotiate with Insurance Company Adjuster: A PA will work alongside the insurance adjuster to agree on the faircompensation you deserve. In most cases, the company insurance adjuster and the PAsort things out amicably.
There are several important things to consider in choosing a public adjuster:
License: Make sure they have a current license to practice in Texas. Ask for his or her license number. If you have any concerns that it’s not a real license, before you enter into a contract:
Send email to License@tdi.texas.gov or call 512-676-6500, Send email to TAPIA@mytapia.org or call 512-299-6680.
No conflict of interest: Beware of contractors who offer to handle your claim “for free” if you let them do the work (sometimes called “contingent agreements”). This is a conflict of interest and is illegal in Texas. A professional public adjuster will prepare your claim without committing to a contractor. That leaves you free to collect your money and then decide with whom and how to spend it.
Also, beware of contractors and public adjusters who try to push you toward an attorney when there is no sign of a legal problem. Most property insurance claims can be settled if both parties act professionally.
Experience: Public adjusters come from a wide range of backgrounds with different areas of expertise. Ask questions to make sure you select a public adjuster with experience that matches your specific loss. Feel free to ask for and talk to references.
Professionalism: Do not sign a contract unless you’ve been given a thorough explanation of how the public adjuster will handle the claim, how they will communicate with you throughout the process, and how they will determine the fee you will pay. Never sign a blank contract.
Comfort level: Be sure you are comfortable talking to and working with the public adjuster. It’s important for you to feel like he or she understands your needs and can communicate in a manner you’re comfortable with.
Texas Association of Public Insurance Adjusters: TAPIA members are licensed by the State of Texas and subscribe to the highest level of professional conduct. All members adhere to a strict code of ethics.
Insurance policies require the policyholder (YOU) to document and prove your loss to the insurance company. Few people have the necessary expertise or experience to meet that burden.A public adjuster understands insurance policies. A PA knows about things like current replacement costs, property repair, business income loss, and other elements of property loss that are critical to getting a fair and proper settlement.
In most cases, a credible public adjuster charges a percentage of the final settlement. The charges depend on the effort and time the PA spent to represent you. Note: In Texas, a personal adjuster’s fee can’t go over 10% of your claim settlement.
However, a public adjuster’s fees can be negotiated and depend on factors like property size, property location, and complexity of the insurance claim case. Some public adjusters have hourly or flat rates, but their total charges are capped at 10% of the final compensation you get from your insurance company.
Public adjusters, like accountants or realtors, base their fees on the time saved andthe amount received in claim recovery. You only have to paya public adjuster when the insurance company settles your claim.
In the US, it’s illegal for contractors, including roofers and restoration companies, to represent you during negotiation with the insurance company. Your contractor can also not hire adjusters for your insurance claim on your behalf.
In fact, in Texas, the Department of Insurance issues a PA license after special training is acquired by individuals seeking to pursue insurance adjusting, specifically public adjusting.
