If you own an insurance policy and have to make a claim, you could do it on your own, or get help from a professional who knows exactly what they’re doing. Enter a public adjuster. 

A public adjuster is an independent insurance professional who works for you, the policyholder, in processing your insurance claim. With their help, you can be assured that the insurance company is not short selling you but that you’ll get what you deserve to the last penny. 

So, they don’t work for insurance companies but rather against them in the pursuit of your claim or interest. This clashes with the profit-driven interest of insurance companies and as a result, insurance companies just don’t like public adjusters and will often discourage policyholders from working with one.

Insurance Companies Want to Avoid Legal Battles 

A common strategy among insurance companies is pretending to want to go to court when a dispute arises between them and the policyholder. Their goal is to push you to become afraid of the intricacies and expense of a legal battle, so much so that you would rather just take the money they’re offering and be done with it. 

But, no one really wants to face suits, if they can help it. Insurance companies feel the same way. They don’t want to go to court over your cases as well. That is why, they will do their best to settle an amount with you during negotiations. 

However, because most policyholders aren’t experts in insurance policies, they may settle for an amount that they think is good enough. But, when you work with a public adjuster, they come with their knowledge and experience and provide you an estimation of the true value of your loss. Among the first things they will do is double-check the assessment of the insurance company, and if they find a discrepancy, they will ask for a higher settlement amount. 

If insurance companies stay adamant on the lower settlement amount and you want to take the case to court, your public adjuster would have already helped you build a strong case and may work with an insurance dispute attorney who can represent you in court. 

Rise in Costs, Reduction in Profit Margins 

When insurance companies see public adjusters, they will instantly think of the additional costs and decrease in profits that come with them. Why? Well, it’s because of this one thing: The claim settlement amount will definitely increase. 

One reason for this is that public adjusters work on a contingency fee basis. This means that they get a cut or percentage of the claim settlement, so they have an incentive to drive up the amount to the max of what the policyholder is due.

Increased Likelihood of More Accurate Claims 

One of the tasks of a public adjuster is to conduct an assessment of property damage. The results of their assessment often contradict those of the insurance company’s internal adjusters, which can lead to increased scrutiny of the latter. 

Public adjusters are also known to submit thorough and accurate documentation in support of the policyholder’s claims. Backed with their knowledge and understanding of the intricacies of insurance policies and the claims process, they are sure to submit more comprehensive claims. 

All of this bumps up the settlement amount. 

Extended Claim Processing Time

Businesses always want their employees to do their jobs as quickly as possible so that they can do more and bring in more profit for the company. Insurance companies are also like this. With many policyholders handing in their claims, especially after disasters, for instance, insurance providers prefer to complete the claims process quickly and efficiently, not only to minimize their workload but also to reduce costs.  

However, when a public adjuster is involved, insurance companies can expect the claims process to be delayed. Public adjusters are famous for being meticulous in their assessment or review and documentation of property damage. Being thorough and accurate takes time. 

Power Shift During Negotiations

They say knowledge is power, and this couldn’t be truer when negotiating for insurance claims settlement. Just imagine a policyholder who is not as familiar with the terms of the insurance policy as the internal adjusters of the insurance provider. In this scenario, who do you think has the upper hand? It’s obvious that the more knowledgeable party will win in a negotiation. 

Now, imagine a different scene. This time, instead of the policyholder, it’s a public adjuster who negotiates for them with the insurance company. (Note that public adjusters are known for their negotiating prowess.) Now, wouldn’t you say that the playing field is more even? 

The bottom line is insurance companies don’t like public adjusters because when it comes to negotiating for the settlement, they tend to shift the power dynamics. Now, the negotiation isn’t one-sided; they lose control of the conversation. They can bet that their lowball offer won’t be accepted and that they’ll have to compromise on a fairer amount. 

Choosing a Public Adjuster

If you’re considering working with a public adjuster, here are some of the key qualities you should look for to hire a good fit. 

Credentials 

Most states require public adjusters to operate with a license. You can easily verify if the public adjuster you’re talking to is licensed or legit by searching for their profile in the National Association of Public Insurance Adjusters website.

Relevant Claims Experience

There are various types of insurance coverage, property, and damage. Make sure that the public adjuster has the relevant knowledge, experience, and track record of dealing with the type of case you’re facing. If not, they might miss significant details that could impact your reimbursement.

Reputation 

You should also check if the public adjuster has a good reputation. Are they reliable? Can you trust them with your case?

Honest & Clear Communication

Choose a public adjuster who communicates with you clearly and openly. They should be transparent about the process, their fees, and what to expect. 

Testimonials

Check the experiences and feedback of policyholders who have previously worked with them. You can search for reviews online or ask someone they’ve worked with in the past. You can glean insights into their success rate and client satisfaction from these testimonials.