It is common to hear myths, rumors, and folk tales for every profession. The reality is that public adjusters often secure larger settlements than if a policyholder were to manage the claim on their own.
A public adjuster is an independent professional who represents the interests of policyholders during an insurance claim. Unlike insurance company adjusters, who work on behalf of the insurer, public adjusters advocate exclusively for the policyholder. Their primary responsibility is to assess property damage, interpret insurance policies, compile necessary documentation, and negotiate a fair settlement. Public adjusters have extensive knowledge of insurance policies, claims procedures, and construction costs, making them valuable allies in the claims process.
Why the Myth Exists
One reason this myth persists is misinformation from insurance companies. Insurers may downplay the importance of public adjusters because these professionals challenge low settlement offers and push for higher payouts. Additionally, some homeowners may have had negative experiences with unqualified or unscrupulous adjusters, leading them to believe that hiring one is unnecessary. However, just as in any profession, choosing a reputable and licensed public adjuster makes all the difference.
Untruth 1: Public Adjusters Are Untrustworthy or Self-serving
A contributing factor is the negative reputation that has developed from cases of fraud and unethical behavior. While the vast majority of public adjusters operate with integrity, there have been instances where some have engaged in fraudulent activities, such as inflating damage estimates, colluding with contractors for kickbacks, or taking advantage of vulnerable homeowners. These high-profile cases, often highlighted in the media, cast a shadow over the entire profession, reinforcing the perception that public adjusters are not to be trusted.
Untruth 2: Public Adjusters Are Unnecessary and Only Complicate Claims
Another common myth is that hiring a public adjuster makes the claims process more complicated or even redundant. Some people believe that independent or captive insurance adjusters, who are employed or contracted by the insurance company, will work in the policyholder’s best interest. However, the reality is that these adjusters ultimately represent the insurer and are bound to follow the company’s policies and guidelines, which may sometimes prioritize cost-saving over policyholders’ needs. On the other hand, public adjusters work solely for the property owner, advocating for the maximum recovery under the policy.
This misconception can be countered by emphasizing the expertise and experience that public adjusters bring to the table. Public adjusters typically have specialized training in policy interpretation, damage assessment, and claims negotiations. They often understand the nuances of a policy better than the policyholder and can identify all possible coverages, which ensures that nothing is overlooked. By highlighting how they simplify the process and work through complex claims more efficiently, public adjusters can demonstrate their real value. Repeating the mantra “we work for you – not the insurance company” is a great way to state your case. Telling this in Networking groups and other events can help remove the myth.
Untruth 3: PAs Are Not as Knowledgeable as Insurance Adjusters
Some people believe that insurance adjusters, whether captive or independent, are more knowledgeable than public adjusters due to their association with insurance companies. However, public adjusters often have in-depth experience and training, often more so than their counterparts working for insurers. They understand policy language, local laws, and claim assessment standards. Additionally, public adjusters tend to have extensive experience dealing with diverse types of property damage and are often skilled at identifying damages that policyholders may not realize are covered.
Untruth 4: Public Adjusters Only Benefit Themselves Financially
Another myth surrounds the fee structure of public adjusters, with some individuals assuming that these professionals charge excessively and primarily benefit from the claim’s payout. In reality, public adjusters usually work on a contingency basis, meaning they are paid a percentage of the recovered claim amount and only if the claim is successful. This structure aligns the public adjuster’s interests with the policyholder, since both benefit from a fair and complete claim settlement. During a declared emergency in Florida the fee is limited to 10% which is very reasonable for all they do.
Dispelling the Lies
Public adjusters should openly share their fee structures and discuss how contingency fees motivate them to secure the best possible outcome for their clients. This helps dispel that myth of being expensive. Public adjusters should also educate policyholders on the financial advantages of working with them. They should share real-world examples of their services helping clients receive significantly higher settlements than they would have on their own. Educating the policyholders will go a long way toward getting rid of the myth and having a more comfortable experience with the cost structure and the value they get.
Public adjusters can address this myth by highlighting their credentials, such as licenses and certifications, and sharing examples of complex claims they’ve successfully managed. By proving their expertise, public adjusters can demonstrate that they are not only as knowledgeable as other types of adjusters but may even offer a higher level of detail-oriented advocacy.
The Evidence: Public Adjusters Secure Higher Settlements
Several studies support the fact that public adjusters help policyholders obtain larger settlements. A report by the Florida Office of Program Policy Analysis and Government Accountability (OPPAGA) found that, on average, policyholders who hired public adjusters received payouts 747% higher than those who did not in non-catastrophe claims. In catastrophe claims, the increase was approximately 574%. These figures highlight the significant impact that public adjusters can have on insurance claim outcomes.
The myth that public adjusters do not secure larger settlements is simply unfounded. Insurance companies have a personal stake in keeping payouts as low as possible, and without professional representation, policyholders often settle for less than they deserve. By hiring a knowledgeable public adjuster, policyholders can ensure their claims are managed accurately and fairly, ultimately securing a settlement that correctly reflects their losses. Rather than falling for the misconception that handling a claim alone is the best option, policyholders should consider the benefits of having a professional advocate in their corner.
Author: R Wagner, co-owner
TeamiDry, LLC
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