Do I need a Public Adjuster?

When you bought your Homeowners Insurance Policy, you likely believed that the insurance company would be there for you if/when the worst happened.  You may have thought that regulations and fairness would ensure a fair and reasonable settlement if you had to file a claim.  If you are researching Public Adjusters, you likely discovered that the insurance company is not on your side.  The equation is not in your favor when they control the entire process.

Public Insurance Adjusters are independent of the insurance companies.  Your Public Adjuster represents you, the policy holder, throughout the claim.  As licensed and trained insurance professionals, all adjusters are responsible to understand and represent coverage provided from your policy accurately.  If there is any ambiguity in your policy, adjusters are required to find coverage in favor of the policyholder.  The difference between a Public Adjuster and the Insurance Company's Adjuster is principle. Public Adjusters argue for the coverage you are owed based on your insurance policy, Department of Insurance guidelines, and the state's administrative code.  The Insurance Company Adjuster applies their employers' guidance and instructions without regard to you, the policy, or recent rulings.  

Although Adjusters are not attorneys and cannot interpret laws and court rulings, some of us are well informed about the recent developments in these areas and how they affect the pursuit of your claim.  As your Public Adjuster, I will consult with local and national law firms to ensure the most accurate policy understanding and application of the contractual obligations.  The Insurance Company tells their Adjusters how they want claims handled to be sure they are highly profitable.  My purpose is to hold the Insurance Companies accountable to the policy and to you, the policy holder.

Having a Public Adjuster involved in your claim will make a difference.  The only known public study of this fact was completed by the Office of Program Policy Analysis & Government Accountability (OPPAGA), a research arm of the Florida Legislature in 1994 to help improve the performance and accountability of state government.  The report reviews the effectiveness of Public Adjusters in claims handled by the state's created Citizens Property Insurance Corporation.  The findings are startling.  You would expect that Citizens, being a non-profit agency, would be fair in their business practices and payouts.  Despite this, having a Public Adjuster involved increase the average settlement by 574%.  That is not a typo.  574% was the actual improvement on claims when a Public Adjuster represents the policyholder.  Public Adjuster Representation in Citizens Property Insurance Corporation Claims Extends the Time to Reach a Settlement and Also Increases Payments to Citizens’ Policyholders (fl.gov) In our experience, these results are not out of line in the slightest.  

Another issue that the article addresses is timeliness.  While Public Adjusters can dramatically improve the outcome of your claim, this process will take time.  Our firm helps manage this risk factor, though.  By using industry leading software solutions to increase visibility, tracking, and response time, TrueVue Appraisal will provide you with the accountability you want from your representative while giving you unsurpassed results.  In addition, TrueVue's approach to your claim is also paramount to your experience.  Some firms will drag out your claim for months or even years longer than necessary in order to extract every possible cent from the Insurance Company.  Others will neglect their responsibilities to respond timely and professionally.  That is not the way of TrueVue.  We work with you and your contractor to ensure we reach a settlement with your insurance company that is reasonable and accurate.  We know time is just as valuable, and we are not going to lengthen the process needlessly.  The goal of TrueVue is to make you whole again, nothing more, nothing less.

According to the Insurance Appraisal and Umpire Association, "Appraisal is a Policy Provision found in the Loss Settlement section.  It is an Alternate Dispute Resolution, which can resolve disagreement when the Carrier and Policyholder do not agree on the amount of loss.  It is an alternative to a lawsuit.  Appraisal does not address coverage issues."  Your Homeowners Insurance Policy was written to define coverages and settlement requirements.  Among the rules and restrictions, there are protections inserted into your policy.  The Appraisal Clause is the most efficient and least expensive way to settle a dispute between you and your insurance company.  It helps protect everyone involved, both you and the insurance company, from the high costs and lengthy process of litigation.  Keep in mind, appraisal does not replace litigation, but it gives you another option for claim resolution.

Appraisal, as a process, is not too complicated.  You and the insurance company each select an independent expert, or Appraiser, to examine the damage your property sustained and determine the best method of repair.  In theory, the Appraisers are unbiased and deliberate in their negotiations.  If the Appraisers reach an agreement, the final estimate is sent back to you and the insurance company, and the insurance company is required to issue settlement based upon this.  If the Appraisers cannot agree, there is a third party who casts the tie-breaking vote, the Umpire.  Whoever the Umpire sides with sets the final decision.  There is no debate once the Umpire has submitted their position.  That's it!  Your claim is done, and you can start construction with your contractor.

When evaluating the use of Appraisal, there are a few things to keep in mind.  First, Appraisal cannot be used to settle a coverage dispute.  If your insurance company has denied the claim due to coverage or cause of loss, Appraisal will not be possible.  This is when using the services of a Public Adjuster or Attorney would be necessary.  Next, how much is in dispute?  Consult your contractor and discuss what the differences are.  Then, you have to determine if the benefit of appraisal is worth the cost.  In Appraisal, each party pays their own appraiser, and if an Umpire is used, the cost is shared between you and the insurance company.  That can be a total cost of anywhere between $750 to $2,000. Even if you win the claim in Appraisal, the insurance company does not owe to pay your Appraisal/Umpire fees.  

Appraisal is relative quick and decisive.  In most cases, Appraisal is completed within a matter of weeks rather than months.  There are times when the Appraisers will extend negotiations rather than incurring the cost of an Umpire.  Some Appraisers working for insurance companies will be more responsive than others as they often bill hourly rather than by a contracted dollar amount.  Unlike court proceedings that have strict rules and timelines, Appraisal does not have any firm rules that apply to the negotiations.  Nonetheless, Appraisers work in a closely knit community, and they, for the most part, abide by unwritten rules of procedure.

What is the bottom line?  Well, Public Adjusters and Attorneys most often charge a percentage of the proceeds from your claim/court settlement.  There may be other expenses they charge such as expert report, depositions, court reporters, etc., that you would have to pay regardless of the outcome, but most Public Adjusters' and Attorneys' fees are contingent on the proceeds from the settlement they win.  Most Appraisals do not have these unexpected costs.  In all likelihood, the reports we use will have been ordered by your insurance company, public adjuster, or contractor in advance.  Before we accept any case, we will let you know what your cost will be.