|
Public
claims adjusters can level
the playing field for you
By Joe Frey
Your house has just
been badly damaged by an earthquake:
foundation cracking; wall collapsing; roof
leaking. Many homes in your neighborhood
have been hit just as hard and insurance
company claims adjusters are becoming more
prevalent than dog-walkers. You can't
remember the last time you looked at your
homeowners policy. Do you know what you’re
entitled to?
 Unfortunately,
most people don't know the details of their
policies because they are chock full of
legalese. However, in the case of home or
property damage (not auto-related),
consumers can turn to public claims
adjusters to decipher their policies and get
them a fair settlement with their insurance
company.
Public adjusters work
for both individuals and businesses, but
most cater to the individual policyholder.
Jim Dilks, a public adjuster with Tri-State
Public Adjusters, based in Bensalem, Pa.,
says that about 80 percent of his company's
business comes from homeowners.
"Insureds don't
need to hire an adjuster for a fire on the
gas range and a little bit of smoke
damage," says Stephen R. Figlin,
president of TAG-The Adjusters Group, based
in Philadelphia. However, you should hire an
adjuster if your lifestyle is significantly
disrupted. That is, when you can't handle
finding new living arrangements, filing a
claim, and arranging for a damage survey of
your property, you should bring in a public
adjuster.
Public adjusters have
to follow the guidelines written in their
state that say what they can and can't do.
Adjusters aren't allowed to handle bodily
injury claims, auto claims, or third-party
claims (such as a trust or an estate). They
also are obligated to give you timely
service (states usually require a settlement
within 10 to 15 days after liability has
been established), make sure you're given a
reasonable offer from the insurance company,
and disclose every part of the claims
process to you.
Advantages
of using a public adjuster
Public claims adjusters
know the insurance process inside and out,
so they can minimize the hassle that comes
with collecting documents and evidence, and
then negotiating with the insurance company.
The adjuster will file all your pertinent
paperwork with the insurance company,
arrange for the inspections of your damaged
property if needed, and then haggle with the
insurance company if it refuses to pay your
claim.
 A
good adjuster will also help control what
you say to your insurance company. The
adjuster will be forthright with your
insurer, but won't divulge any information
that might damage your case. Remember, the
adjuster is your employee and will pursue
your interests only.
Pay
up
If you do decide to
have a public claims adjuster help you out
with your claim, expect them to take between
5 and 50 percent of your claim settlement.
As the settlement amount goes up, the
adjuster's cut generally goes down. For
example, if you settle for $5,000, the
adjuster might take 30 percent of that.
Adjusters' fees also
depend on the nature of the claim and your
marketplace. In Philadelphia, for example, a
consumer will benefit from the competition
among the 16 adjusting firms that operate in
and around the city, and adjuster fees will
be lower. However, in Montgomery County,
Pa., where only four firms operate, you will
probably pay more for your adjuster's
service.
You'll have to sign a
contract with your adjuster when you decide
to hire him. You agree to give a portion of
your settlement to your adjuster by signing
the contract, but if you have second
thoughts, you can terminate the agreement
within 72 hours of signing. You also have
the right to sue your public adjuster if he
doesn't perform his job correctly.
Do
I need an adjuster's help?
In some cases, you
don't need to solicit the services of a
public adjuster. If you're familiar with
your homeowners policy and with construction
costs, you can probably maximize the
settlement your insurance company gives you.
However, homeowners policies are often
difficult to navigate because of the
legalese and various named and unnamed
exclusions.
Depending on who you
talk to, you may or may not need a public
adjuster. One piece of advice is to seek a
public adjuster's service right away.
"It's difficult for adjusters to come
aboard in the middle of a case," Dilks
says. "[Negotiating your claim
yourself] is like representing yourself in
court," Dilks says. "You can do it
successfully, but your chances for error are
greater." Dilks says it's nearly
impossible for consumers to know what they
can expect from their insurer in a
homeowners claim situation, even after they
read their policies.
Industry officials
advise consumers to wait for the company's
first offer before deciding whether to hire
an adjuster. "A lot of times a
company's first offer is just that, a first
offer," says John Eager, director of
claims services at the National Association
of Independent Insurers. "Insurers
aren't inflexible to settling claims higher
than the first offer."
Last updated Feb. 3, 1999
This article was excerpted from the
insure.com website.
|
