The storm is over and sadly the association’s clubhouse is damaged. The manager calls the association’s insurance company to report the claim. They arrange for their “adjuster” to survey your damage and issue a report. The insurance carrier reviews the report and determines the association’s entitlement for the loss it suffered. So far, the board is pleased at the insurance company’s responsiveness and the adjuster’s attentiveness who genuinely sympathizes with the association’s loss. Everyone is starting to feel a little better about the situation. The manager starts to arrange for the substantial repairs that must be undertaken. The repair estimates arrive while the board waits for the insurance carrier’s valuation. Then, the report arrives. The board is panic struck as they read that the association’s claim is valued at $300,000., and the least repair estimate was $700,000. What went wrong and how did this happen?
An old expression comes to mind, “the good Lord helps those who help themselves”. In this made up story, that likely at times resembles real life, the association did not avail themselves of what some consider to be the most important part of making an insurance claim. The association did not retain a Public Adjuster to value the claim.
Albeit the term “Public Adjuster” can be a bit of a misnomer and is confusing. Let’s address that right now. A Public Adjuster is a state licensed insurance claims adjuster who advocates for YOU in appraising and negotiating your insurance claim.
In general, there are three classes of insurance claims adjusters: i) “staff adjusters” who are employed by an insurance company or self-insured entity, ii) “independent adjusters” who are independent contractors hired by the insurance company and iii) “Public Adjusters” who are hired by the policyholder.
The Public Adjuster works for you, the property owner, and not the insurance company. Aside from attorneys and your insurance broker, Public Adjusters are advocates for your rights. Public Adjusters are experts on property loss adjustment who are retained by policyholders to assist in preparing, filing and adjusting insurance claims. Employed exclusively by a policyholder who has sustained an insured loss, these professionals manage every detail of the claim, working closely with the insured to provide the most equitable and prompt settlement possible. A Public Adjuster inspects the loss site immediately, analyzes the damages, assembles claim support data, reviews the insured’s coverage, determines current replacement costs and exclusively serves the client, not the insurance company. Public Adjusters are also beneficial when it is clear that the insurer will pay the claim and the only issue is the proper identification of all losses and their valuation and cost to repair.
A typical wind storm, fire or flood policy contains hundreds of provisions and stipulations, constantly changing forms and endorsements, and many complex details such as inventory appraisals and real estate evaluations that are required in case of a loss. Most policyholders are not aware that they have the burden of proof.
Best of all, Public Adjusters are highly motivated to ensure that you receive every penny you can because they typically charge a percentage of the insurance settlement. It’s money well spent! How do I know? Because, even as an attorney, I used them, too. Years ago after we were hit with multiple storms back to back, my own claim was undervalued. My Public Adjuster helped ensure that my claim was properly compensated.
Whether you’re an association board member or homeowner, if your property suffers damage from a casualty event, remember to avail yourselves of the benefits of a reputable Public Adjuster.