When disaster strikes and your PROPERTY suffers damage, filing an insurance claim can be a daunting process. One of the most important decisions you’ll make is whether to handle the process with just your insurance company’s adjuster or to hire a public adjuster to represent your interests. This article explores the key differences between public adjusters and insurance adjusters, showing how each serves a different purpose and, ultimately, which one can better help you maximize your claim.
Who Works for Whom?
Insurance Adjuster:
Insurance adjusters, also known as company or staff adjusters, work directly for the insurance company. Their primary role is to evaluate the damage to your property and calculate a settlement offer that aligns with the company’s policies and guidelines. Although these adjusters should operate fairly, they ultimately serve the interests of the insurance provider, which can lead to minimized payouts.
Public Adjuster:
In contrast, a public adjuster works on behalf of you—the PROPERTY OWNER. Their goal is to ensure that you receive the full amount you are entitled to based on your policy. They handle the documentation, negotiation, and back-and-forth with your insurer, saving you time and ensuring no damage is overlooked. Public adjusters are licensed professionals with expertise in claims processes, policy language, and damage assessments.
How They Get Paid
Insurance Adjusters:
Insurance adjusters are salaried employees of the insurance company and receive no compensation directly from your settlement. However, since they are accountable to their employer, they have an incentive to control claim payouts to protect the insurer’s financial bottom line.
Public Adjusters:
Public adjusters work on a contingency fee basis, meaning they only get paid a percentage of the final settlement. In Florida, these fees are typically capped at 10% for claims related to emergencies such as hurricanes and 20% for non-catastrophic claims. This structure ensures that public adjusters are motivated to secure the highest payout possible for homeowners, as their payment increases with the claim amount.
Case Studies: Florida Hurricane Claims
The importance of hiring a public adjuster becomes clear when looking at real-life examples from recent Florida hurricanes. After Hurricane Irma in 2017, data revealed that homeowners who hired public adjusters received up to 747% more on their insurance settlements compared to those who relied solely on the insurance company’s adjusters.
Similarly, after Hurricane Idalia in 2023, many homeowners in the Big Bend region (including towns like Cedar Key and Perry) reported delays, underpaid claims, or outright denials. Those who brought in public adjusters were able to re-open claims and recover significantly higher settlements, helping them repair their homes faster and more comprehensively
Steps in the Claims Process: Key Differences
Damage Assessment:
Insurance Adjuster: Evaluates damage from the perspective of minimizing costs to the insurance company.
Public Adjuster: Conducts a thorough inspection, including hidden or secondary damage that may be initially overlooked (e.g., water intrusion in walls).
Documentation:
Insurance Adjuster: May document only what’s essential for an initial estimate, which could result in overlooked or undervalued damage.
Public Adjuster: Prepares detailed reports and gathers evidence to ensure the claim fully reflects all damage and repair costs.
Negotiation:
Insurance Adjuster: Works to settle the claim as quickly and cost-efficiently as possible, often with minimal adjustments after the first offer.
Public Adjuster: Advocates for the homeowner during negotiations, often re-opening claims to recover higher amounts if the initial offer is inadequate.
Statistics: Why Public Adjusters Make a Difference
A study by the Florida Legislature’s Office of Program Policy Analysis & Government Accountability (OPPAGA) showed that homeowners who used public adjusters after hurricanes received 574% higher settlements on reopened claims than those who didn’t use public adjusters.
In the case of initial claims, the same report found that settlements were up to 747% higher when public adjusters were involved
These statistics highlight the financial benefit of hiring a public adjuster, particularly for homeowners dealing with complex or large-scale damage.
When Should You Hire a Public Adjuster?
You should consider hiring a public adjuster if:
You’ve experienced ANY property damages (such as from hurricanes or floods).
You suspect that the insurance company’s initial settlement offer is too low.
You feel overwhelmed by the claims process or don’t have the time to handle it yourself.
Your claim has been delayed, denied, or underpaid, and you need to re-open it.
Conclusion: Public Adjuster vs. Insurance Adjuster—Which Is Right for You?
While both public adjusters and insurance adjusters play roles in the claims process, their priorities differ significantly. Insurance adjusters represent the company’s financial interests, while public adjusters work solely for the homeowner. If your home has sustained hurricane damage and you want to ensure the highest possible payout, hiring a public adjuster can be a wise investment. With their expertise and advocacy, you’ll be better positioned to recover the funds you need to rebuild and restore your home.
For Florida homeowners facing the aftermath of hurricanes or any natural disasters, working with a public adjuster can mean the difference between a lowball offer and a fair/proper settlement.
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