Momentum - Business to Business Online Magazine October 2018 | Page 21

Considering A Public Adjuster? By: Jan Laman [email protected] Harbour Insurance Services, Inc. There are generally three types of adjusters: • Staff adjuster: a loss adjuster employed directly by the insurance carrier • Independent adjuster: an adjuster contracted by and representing the insurance carrier, who may work for an independent adjusting firm or as an independent contracted by the carrier • Public adjuster: an adjuster hired by the insured to assist in settling the claim, who provides expertise in preparing, filing and adjusting the claim, and works closely with the insured to provide the most equitable and prompt settlement possible While staff and independent adjusters represent the insurance company, a public adjuster represents the insured against the insurance carrier, fighting on behalf of the insured. Some insureds find public adjusters beneficial following a property loss because the adjusters are experienced in the process. Most insureds have never suffered a loss, so they don’t understand all the requirements or nuances of adjusting one. A good, ethical public adjuster can be a valuable advocate for an insured during a difficult time. Here are several key questions to ask a public adjuster: Does the adjuster have a state-issued public adjuster license? Public adjusters are generally required to be licensed in the state in which the property is located. Make sure you get or at least see a copy of the license. Where is the adjuster based? Even if the public adjuster has a license issued by the state in which the property is located, are they domiciled in the state? Due to state-by-state variations in coverage, if the adjuster doesn’t commonly work in the state in which the property is located, they may not be as well-versed in that state’s laws and requirements. Is the adjuster a member of the National Association of Public Insurance Adjusters? Although being a member doesn’t guarantee the intentions of every public adjuster, members of the association are required to follow a strict code of ethics. Did the adjuster provide references and qualifications? Ask for references from prior clients. Did the adjuster attempt to pressure you into signing the contract? Statements like “Just sign this and we will take care of the whole thing for you” may sound innocuous, but they’re actually a type of hard sell. Be wary of these tactics — even though a public adjuster is involved, the insured must still participate in developing the proof of loss. Did the adjuster fully explain the contract to you? Remember, public adjusters charge a fee for their services, often 10 - 15% of total claim payment. If the adjuster failed to fully explain this and other provisions of the contract, it’s a red flag. Did the adjuster ask for money up front? This is not proper in any way. If the public adjuster does this, you should not contract with them. Did the adjuster make any guarantees about the sum the insured will receive? There is no way a public adjuster can promise anything. Do not contract with any public adjuster who guarantees a specific outcome. Is the same person who solicited the service the same person who will adjust the loss? This is not an ethical consideration, but if the salesperson is also going to adjust the loss, the insured needs to be sure they’re qualified. Does the contract address monies received prior to the hiring of the public adjuster? If the insurance carrier pays the insured emergency money or some other payment before the insured hires the public adjuster, that amount should not be part of the calculation for payment to th e adjuster. Does the public adjuster seem honest? This is very hard to judge, but some public adjusters may give themselves away by telling you things they can do to make sure you get a certain amount of money. An ethical public adjuster just wants to ensure the insured gets everything they are owed — no more. MOMENTUM / October 2018 20