Like everything in life today, there are major pros and cons to using public adjusters when filing insurance claims. The important part of the scenario is that you as the homeowner sit down and weigh the costs and benefits as it relates to you and your property damage specifically. We understand you’re not an expert on the public adjustment process, which is why we’re going to explore pros and cons and how they are situational depending your claim.
The Top 3 Pros of Using a Public Adjuster
We’re guessing you’re probably not well versed in the documentation and claims filing process with massive insurance companies. Public adjusters are experts at what they do, which means if you have a large insurance claim, you’re going to want expertise supporting the process. Insurance companies are going to try and payout the least amount possible. Public adjusters are aware of the loopholes.
Depending on the severity of your property damage, you might be traumatized from what just happened and unable to follow through on your claim thoroughly. If you are dealing with a seriously massive insurance claim, you’re going to want an objective, third-party involved in negotiations to keep everything calm, cool, and collected.
3. Higher Payout
A recent OPAGGA report in Florida proved that public adjusters do indeed increase the final amount of a claims payment. By using a public adjuster, you’re assured much more money for your claim through the insurance company than if you attempt the whole thing without one.
The Top 3 Cons of Using a Public Adjuster
1. Small Claims
As we mentioned above, public adjusters are definitely necessary when dealing with massively expensive claims and catastrophic property damage. However, if you’re attempting to file a claim for some minor damages that don’t amount to much, bringing in a public adjuster is probably a waste of your time. Since they get a small cut of the commission, it’s not worth it for a tiny claim.
2. Commission Fee
Everyone deserves payment for his or her services. Public adjusters are paid a percentage of the settlement claim. Though this encourages them to work harder and levy up the final claims settlement, it can also be a negative if they fail to get a higher settlement. So it is important to do your due diligence and hire the right partner who will provide honest advise from the start.
It’s worth noting that most times, public adjusters are successful in increasing the final settlement.
3. Prolonged Negotiations
This part is necessary if your carrier has put their foot in the sand and are only offering a low payout. However, if you’re so scarred that you just want the entire process over with, don’t hire a public adjuster. They will seek everything you are owed under the policy language so negotiations with the insurance companies will continue until they are sure every last penny has been squeezed out. If you’re looking to walk away from the situation quickly, this is not the right avenue, and you are probably not getting what you're owed.
Ready to consider a public adjuster? Determine the size of your claim, the time you have for the process, and the expertise required for the final settlement.