I have heard too many horror stories regarding public adjusters. I am sure there are many honest, caring public adjusters, however, from some of the stories I have heard, most are “ambulance chasers” who are less than honest.
A 48 moratorium on public adjusters seems reasonable and would allow the insured’s carrier to send help to an insured. This would be less likely to result in a fraudulent claim.
From all I have heard of public adjusters, they are mostly looking for a settlement however they can get it – and this can and does result in fraud.
“Public adjusters serve as advocates for policyholders while negotiating insurance claims.”
That’s an interesting sentence. In what percentage of claims would you say that sentence is actually true? My personal guess would be around 50% but maybe I’m wrong.
50% would be high I think. Truthfully there are only a few bad actors on the carrier side in general. On the PA side it’s full of bad actors. I think there is a place for public adjusters, but it needs to be AFTER the carrier denies or doesn’t properly pay a claim.
Public Adjusters in Florida, let me say this, I have had great relationships with the ones that know their job and want to move the loss.The are certain Public Adjusters in South Florida who do not have a clue and do not know how to settle a claim for their client / my insureds in mind are the thiefts. They make more money going to appraisal, more money for Attys who file the Bullsh_t law suits. It cost their clients more money and they do not even realize it ( insureds who hire these scam artist)I do not feel bad for. Having a lience is one thing, but knowing how to adjust is another, negoicate a loss is another, not just give me my 20%. The state needs to step up these fraud adjusters and get them out of the business.
I have no problem with an independent adjuster that does fact-finding for an insurance company, to help speed up the time it takes to investigate and close a claim. I don’t understand the need for a public adjuster. The payment of a claim depends on policy provisions. Having assistance from a public adjuster in completing a loss inventory or other paperwork might be nice, but it isn’t going to change the validity of a claim or the amount of damages. I’ve seen public adjusters that based their fee on a percentage of the insurance payment rather than a flat fee or hourly rate for completing the paperwork. From that point of view, a public adjuster merely exacerbates the loss and drives up the cost of insurance for all of us.
Property Insurance Policies place the duty of claim preparation onto the assured in the event of a loss. Public Adjusters do a professional job in the preparation and presentation of those claims. Most insureds don’t know the first thing about creating an estimate or evaluating the ACV of their contents. PAs provide a very valuable service.
Some Public Adjusters are better than others. It’s that way in every profession. Your personal experiences with one bad apple shouldn’t ruin your image of the entire profession. Speaking as a PA, I have met many bad apples sent out by carriers to adjust claims. However, I must say that the vast majority of company representatives are good people doing their jobs to the best of their abilities. Let’s have mature attitudes and conversations.
Property insurance companies send out THEIR OWN adjusters to make those determinations and in over 90% of cases I’ve seen are fair. There is no need for a public adjuster unless the insured doesn’t feel as though they’re being treated fairly. In that case I’m all for it.
I was an adjuster for several large insurance companies and and independent adjuster and have over 30 years experience. I recently became a public adjuster to assist the public in any way I can. My friends are adjusters and they attempt to do the right thing on claims.Insurance adjsuters in general are a very professional group of people However,I have noted that any benefit of doubt is not being provided to the homeowner. I have noted that the policy interpretations are not based on law but more than ever, based on opinion and in some cases, personal bias. I am representing policyholders that have had coverages inappropriately denied or severely curtailed and until I contact the insurance company….the policy holder does not know they were ever shorted. A claim is a claim and is covered or not. The PA’s main job is to assist the homeowner in making sure the homeowner receives everything they are entitled to under the terms of the policy. The insurance company representatives are generally overworked and they make plenty of errors that affect the finanical bottom line of the policyholders they service. A PA is there to make sure this situation of underpayment does not happen once we get involved as representatives.
Glenn: You say you have noted that the policy interpretations are not based on the law but more than ever, based on opinion and in some cases, personal bias. You go on to say that you are representing policyholders on these issues; issues of policy interpretation and law.
Now, I routinely read court decisions on exactly these types of questions. So, I’m curious, are you properly licensed to practice law or are you practicing law without a license?
I agree that public adjusters have an important role to play when assisting policyholders with claims. I just didn’t expect that to include representing the policyholder on issues of policy interpretation and law, except, of course, in cases where the adjuster is appropriately licensed.
As an insurance claims professional, I hold the CPCU, AIC, AIM, AAM and FCLS designations, I’ve been in management for over 20 years at the vice-president level for a major carrier I think this is an unfortunate decision. Insureds already have to pay a deductible, and if it’s not a replacement cost policy will be paid actual cash value which can often be far less than what they could replace an item should they have to buy a new item. Most states seem to have a limit for PA fees at about 15%. So for a $100,000 loss, the insured will have $1000 deductible, 25% depreciation, depending on the policy would be responsible for building code upgrades, and now another 15% for the PA. By the time that’s all done, they are netting $59,000 for what could cost them up to $100,000 if they want to replace everything. When an insured has been in a major catastrophe, they are naturally upset. They do not understand the claim process. In large CATS the insurance company may have thousands of risks in a relatively small area and telephones and other communications will be out. That means the insurance company has to go in and find them. They have to mobilize a CAT team, find them transportation and lodging and get them done. Frankly, being involved in this process and having a brother than manages a major carriers CAT response, it’s amazing how quickly they do that. But unfortunately it can take a couple of days. A PA shows up, tells them some horror stories about big insurance companies, how terrible it is they have not been contacted and walk away with a signed contract with the insured believing that somehow they would not be paid as much without the PA. In most states there are laws that say when your home is a total loss, the company must pay you the policy limits! Insurance is a regulated business. There are state insurance departments which can assist insureds if there is a problem. If the problem gets too big, many causes of action against an insurer can provide for attorney fees on top of the settlement, and other damages as well. But the PA fee comes off the top of the settlement. I have seen some large, complex claims where the insured just didn’t trust the insurer and the PA was very helpful in getting the claim resolved. But I’ve seen many times where the insured ended up getting screwed in the deal. The waiting period really protects the insured so they can talk to their adjuster up front and guage for themselves the true need for a PA. Personally, I think a good settlement is one where the claimant ends up with more money in their pocket than they would have had they hired a PA or attorney. You also have to keep in mind is there are factors that highly motivate an insurance company to make sure an insured is happy with their settlement. Due to the costs in underwriting new business, estimates are they they have to have policy holders purchase one or two renewal policies before they are actually making money on a deal. Having a policyholder go somewhere else after one policy term is a money loser. In fact, I know for a fact that at least one very large national carrier has in the past gone into neighboorhoods and totalled roofs after a hail claim where there was questionable or very minor damage. Imagine the effect on a neighborhood when 2 or 3 neighbors get new roofs and the rest get next to nothing. Not only does word get out in the neighborhood, those people tell their friends, co-workers, etc. I could go on and on…
Arfman, you said it better than anyone else. We had a very large hailstorm in our city more than a year ago, and the losses that PA’s are involved in are the biggest problems. In all but one case the company adjusted the claim more than fairly, but the involvement of the PA has resulted in lawsuits and repairs or replacement of some of the largest buildings in town being delayed for more than 17 months.
Hi J.S.
I don’t interpret the law at all. I said the carriers are making decisions that disregard Florida Statute (that is what I feel is the binding authority in a majority of cases. For instance. I am constantly reminding carriers that FL Statute 626.9744 requires them to consider matching and the remaining life of items. Recently I had to remind a carrier that they still were bound by the Value Policy Law and can’t take deprection on a fire loss to a dwelling.No interpretation here, simple straight forward reminding the carriers they are prohibited from some of their actions.Any adjuster (PA or not) is prohibited from practicing law but they should be aware of what the law states in black and white. The gray areas are for the attorneys to resolve.
I have heard too many horror stories regarding public adjusters. I am sure there are many honest, caring public adjusters, however, from some of the stories I have heard, most are “ambulance chasers” who are less than honest.
A 48 moratorium on public adjusters seems reasonable and would allow the insured’s carrier to send help to an insured. This would be less likely to result in a fraudulent claim.
From all I have heard of public adjusters, they are mostly looking for a settlement however they can get it – and this can and does result in fraud.
“Public adjusters serve as advocates for policyholders while negotiating insurance claims.”
That’s an interesting sentence. In what percentage of claims would you say that sentence is actually true? My personal guess would be around 50% but maybe I’m wrong.
50% would be high I think. Truthfully there are only a few bad actors on the carrier side in general. On the PA side it’s full of bad actors. I think there is a place for public adjusters, but it needs to be AFTER the carrier denies or doesn’t properly pay a claim.
Public Adjusters in Florida, let me say this, I have had great relationships with the ones that know their job and want to move the loss.The are certain Public Adjusters in South Florida who do not have a clue and do not know how to settle a claim for their client / my insureds in mind are the thiefts. They make more money going to appraisal, more money for Attys who file the Bullsh_t law suits. It cost their clients more money and they do not even realize it ( insureds who hire these scam artist)I do not feel bad for. Having a lience is one thing, but knowing how to adjust is another, negoicate a loss is another, not just give me my 20%. The state needs to step up these fraud adjusters and get them out of the business.
Blood suckers. All of them!
I have no problem with an independent adjuster that does fact-finding for an insurance company, to help speed up the time it takes to investigate and close a claim. I don’t understand the need for a public adjuster. The payment of a claim depends on policy provisions. Having assistance from a public adjuster in completing a loss inventory or other paperwork might be nice, but it isn’t going to change the validity of a claim or the amount of damages. I’ve seen public adjusters that based their fee on a percentage of the insurance payment rather than a flat fee or hourly rate for completing the paperwork. From that point of view, a public adjuster merely exacerbates the loss and drives up the cost of insurance for all of us.
Property Insurance Policies place the duty of claim preparation onto the assured in the event of a loss. Public Adjusters do a professional job in the preparation and presentation of those claims. Most insureds don’t know the first thing about creating an estimate or evaluating the ACV of their contents. PAs provide a very valuable service.
Some Public Adjusters are better than others. It’s that way in every profession. Your personal experiences with one bad apple shouldn’t ruin your image of the entire profession. Speaking as a PA, I have met many bad apples sent out by carriers to adjust claims. However, I must say that the vast majority of company representatives are good people doing their jobs to the best of their abilities. Let’s have mature attitudes and conversations.
Property insurance companies send out THEIR OWN adjusters to make those determinations and in over 90% of cases I’ve seen are fair. There is no need for a public adjuster unless the insured doesn’t feel as though they’re being treated fairly. In that case I’m all for it.
I was an adjuster for several large insurance companies and and independent adjuster and have over 30 years experience. I recently became a public adjuster to assist the public in any way I can. My friends are adjusters and they attempt to do the right thing on claims.Insurance adjsuters in general are a very professional group of people However,I have noted that any benefit of doubt is not being provided to the homeowner. I have noted that the policy interpretations are not based on law but more than ever, based on opinion and in some cases, personal bias. I am representing policyholders that have had coverages inappropriately denied or severely curtailed and until I contact the insurance company….the policy holder does not know they were ever shorted. A claim is a claim and is covered or not. The PA’s main job is to assist the homeowner in making sure the homeowner receives everything they are entitled to under the terms of the policy. The insurance company representatives are generally overworked and they make plenty of errors that affect the finanical bottom line of the policyholders they service. A PA is there to make sure this situation of underpayment does not happen once we get involved as representatives.
Glenn: You say you have noted that the policy interpretations are not based on the law but more than ever, based on opinion and in some cases, personal bias. You go on to say that you are representing policyholders on these issues; issues of policy interpretation and law.
Now, I routinely read court decisions on exactly these types of questions. So, I’m curious, are you properly licensed to practice law or are you practicing law without a license?
I agree that public adjusters have an important role to play when assisting policyholders with claims. I just didn’t expect that to include representing the policyholder on issues of policy interpretation and law, except, of course, in cases where the adjuster is appropriately licensed.
As an insurance claims professional, I hold the CPCU, AIC, AIM, AAM and FCLS designations, I’ve been in management for over 20 years at the vice-president level for a major carrier I think this is an unfortunate decision. Insureds already have to pay a deductible, and if it’s not a replacement cost policy will be paid actual cash value which can often be far less than what they could replace an item should they have to buy a new item. Most states seem to have a limit for PA fees at about 15%. So for a $100,000 loss, the insured will have $1000 deductible, 25% depreciation, depending on the policy would be responsible for building code upgrades, and now another 15% for the PA. By the time that’s all done, they are netting $59,000 for what could cost them up to $100,000 if they want to replace everything. When an insured has been in a major catastrophe, they are naturally upset. They do not understand the claim process. In large CATS the insurance company may have thousands of risks in a relatively small area and telephones and other communications will be out. That means the insurance company has to go in and find them. They have to mobilize a CAT team, find them transportation and lodging and get them done. Frankly, being involved in this process and having a brother than manages a major carriers CAT response, it’s amazing how quickly they do that. But unfortunately it can take a couple of days. A PA shows up, tells them some horror stories about big insurance companies, how terrible it is they have not been contacted and walk away with a signed contract with the insured believing that somehow they would not be paid as much without the PA. In most states there are laws that say when your home is a total loss, the company must pay you the policy limits! Insurance is a regulated business. There are state insurance departments which can assist insureds if there is a problem. If the problem gets too big, many causes of action against an insurer can provide for attorney fees on top of the settlement, and other damages as well. But the PA fee comes off the top of the settlement. I have seen some large, complex claims where the insured just didn’t trust the insurer and the PA was very helpful in getting the claim resolved. But I’ve seen many times where the insured ended up getting screwed in the deal. The waiting period really protects the insured so they can talk to their adjuster up front and guage for themselves the true need for a PA. Personally, I think a good settlement is one where the claimant ends up with more money in their pocket than they would have had they hired a PA or attorney. You also have to keep in mind is there are factors that highly motivate an insurance company to make sure an insured is happy with their settlement. Due to the costs in underwriting new business, estimates are they they have to have policy holders purchase one or two renewal policies before they are actually making money on a deal. Having a policyholder go somewhere else after one policy term is a money loser. In fact, I know for a fact that at least one very large national carrier has in the past gone into neighboorhoods and totalled roofs after a hail claim where there was questionable or very minor damage. Imagine the effect on a neighborhood when 2 or 3 neighbors get new roofs and the rest get next to nothing. Not only does word get out in the neighborhood, those people tell their friends, co-workers, etc. I could go on and on…
Arfman, you said it better than anyone else. We had a very large hailstorm in our city more than a year ago, and the losses that PA’s are involved in are the biggest problems. In all but one case the company adjusted the claim more than fairly, but the involvement of the PA has resulted in lawsuits and repairs or replacement of some of the largest buildings in town being delayed for more than 17 months.
Hi J.S.
I don’t interpret the law at all. I said the carriers are making decisions that disregard Florida Statute (that is what I feel is the binding authority in a majority of cases. For instance. I am constantly reminding carriers that FL Statute 626.9744 requires them to consider matching and the remaining life of items. Recently I had to remind a carrier that they still were bound by the Value Policy Law and can’t take deprection on a fire loss to a dwelling.No interpretation here, simple straight forward reminding the carriers they are prohibited from some of their actions.Any adjuster (PA or not) is prohibited from practicing law but they should be aware of what the law states in black and white. The gray areas are for the attorneys to resolve.