When it comes to filing an insurance claim, most people are unaware of the intricacies of the process. Insurance companies, in general, try to settle claims for the lowest possible amount. However, policyholders have the legal right to hire a public insurance adjuster (PIA) to represent their interests and negotiate a fair settlement with the insurance company. In this article, we’ll discuss what public insurance adjusters are, what they do, and how they can help you get the best possible settlement.
What Is a Public Insurance Adjuster?
A public insurance adjuster is an insurance claims adjuster who advocates for the policyholder during the claims process. PIAs are licensed by the state and have the legal authority to represent policyholders in negotiations with the insurance company. PIAs have a duty to work in the policyholder’s best interests to ensure they receive a fair settlement.
Public insurance adjusters are not affiliated with the insurance company and do not work for them. Instead, they are hired by the policyholder to act as an independent third-party in the insurance claims process. This means they can offer unbiased advice and negotiate for the policyholder without any conflicts of interest.
What Are the Benefits of Hiring a Public Insurance Adjuster?
Hiring a public insurance adjuster has several benefits, including:
Benefit |
Description |
|---|---|
Expertise |
PIAs have extensive knowledge of insurance policies, claims processes, and the industry as a whole. They can help policyholders navigate complex claims processes and ensure they receive the maximum possible settlement. |
Time Savings |
Filing an insurance claim can be a time-consuming process. Hiring a PIA can reduce the time and effort required to file a claim and negotiate a settlement. |
Higher Settlements |
Public insurance adjusters work for the policyholder, not the insurance company. They have a duty to advocate for the policyholder and negotiate a fair settlement. This often results in higher settlements than policyholders could negotiate on their own. |
Less Stress |
Filing an insurance claim can be a stressful experience, especially if there is significant damage to the property or the claim is denied. Hiring a PIA can reduce the stress and anxiety associated with the claims process. |
How Do Public Insurance Adjusters Work?
The public insurance adjuster’s job is to represent the policyholder during the claims process. This involves several steps:
Step 1: Inspection and Assessment
The PIA will inspect the property and assess the damage. They will review the insurance policy to determine what is covered and the limits of coverage. They will also determine the cause of the damage and document the loss.
Step 2: Claim Preparation and Submission
The PIA will prepare the claim and submit it to the insurance company. This includes completing all necessary forms, providing documentation to support the claim, and negotiating with the insurance company on behalf of the policyholder.
Step 3: Negotiation and Settlement
The PIA will negotiate with the insurance company to ensure the policyholder receives a fair settlement. This may involve revising the claim, providing additional documentation or evidence, or appealing a denied claim. Once a settlement is reached, the PIA will ensure the policyholder receives payment.
When Should You Hire a Public Insurance Adjuster?
Policyholders can hire a public insurance adjuster at any time during the claims process. However, it is best to hire a PIA early in the process, ideally at the time of the initial claim. This allows the PIA to document the damage and negotiate with the insurance company from the outset.
What Types of Claims Do Public Insurance Adjusters Handle?
Public insurance adjusters handle a wide range of claims, including:
Claim Type |
Description |
|---|---|
Fire Damage |
Claims related to fire damage to property |
Water Damage |
Claims related to water damage to property due to flood, burst pipes, etc. |
Storm Damage |
Claims related to damage caused by storms, including hurricanes, tornadoes, and hailstorms |
Commercial Claims |
Claims related to business or commercial property |
Personal Property Claims |
Claims related to personal property, including jewelry and artwork |
How Much Does a Public Insurance Adjuster Cost?
Public insurance adjusters typically charge a percentage of the settlement amount. The percentage can vary but is usually between 10% and 20%. This fee is paid by the policyholder and is deducted from the settlement amount. Some states regulate the fees that PIAs can charge, so it is important to check the regulations in your state before hiring a PIA.
Is Hiring a Public Insurance Adjuster Worth the Cost?
While hiring a public insurance adjuster can be costly, it is often worth the expense. PIAs can help policyholders negotiate higher settlements, which can offset the cost of their fees. They can also reduce the time and stress associated with the claims process, allowing policyholders to focus on other important tasks.
The Bottom Line
Filing an insurance claim can be a daunting task, especially if you are not familiar with the claims process. Hiring a public insurance adjuster can help you navigate the complex world of insurance claims and ensure you receive a fair settlement. While there is a cost associated with hiring a PIA, the benefits often outweigh the expense. If you are in the process of filing an insurance claim, consider hiring a public insurance adjuster to represent your interests and maximize your settlement.
Frequently Asked Questions
Q: What is the difference between a public insurance adjuster and an insurance company adjuster?
A: An insurance company adjuster works for the insurance company and is responsible for assessing the damage and determining the amount of the settlement. A public insurance adjuster works for the policyholder and advocates on their behalf to ensure they receive a fair settlement.
Q: How can I find a reputable public insurance adjuster?
A: To find a reputable public insurance adjuster, ask for referrals from friends or family members who have used a PIA in the past. You can also search for PIAs online or contact your state’s Department of Insurance for a list of licensed adjusters.
Q: Are there any risks associated with hiring a public insurance adjuster?
A: While hiring a public insurance adjuster can have many benefits, there are some risks to consider. PIAs charge a fee, which can reduce the amount of the settlement. Additionally, some PIAs may make promises they cannot keep, so it is important to do your research and choose a reputable and experienced PIA.
Q: Can I negotiate the fee with a public insurance adjuster?
A: Yes, you can negotiate the fee with a public insurance adjuster. However, it is important to remember that PIAs are licensed professionals and their fees are regulated by the state. Make sure to discuss the fee structure with your PIA before hiring them to represent you.
Q: How long does it take to settle an insurance claim with the help of a public insurance adjuster?
A: The length of time it takes to settle an insurance claim with the help of a public insurance adjuster can vary depending on the complexity of the claim and the insurance company’s response time. However, hiring a PIA can often expedite the claims process and result in a quicker resolution.