Have you ever wondered who you can trust when handling your insurance claim? Whether you’re dealing with property damage, a fire, or water loss, understanding the role of different types of adjusters can be confusing. In this article, we’ll break down the key differences between public adjusters VS claims adjusters, explaining why hiring an independent advocate might be the best choice for you.

The Insurance Claims Maze

Filing an insurance claim can feel like navigating a maze filled with paperwork, deadlines, and complicated terms. The most confusing part is understanding who’s on your side: the insurance company’s adjuster or a public adjuster. While both play a role in settling your claim, their interests and motivations differ vastly. A claims adjuster works for the insurance company, while a public adjuster represents you, the policyholder. So, who should you trust to ensure you get the compensation you deserve? Let’s break it down.

What Is a Claims Adjuster?

A claims adjuster is an insurance company employee responsible for evaluating claims made by policyholders. When you file a claim, the claims adjuster is sent to assess the damage, determine the extent of the coverage, and ultimately recommend to the insurance company how much they should pay.

Key Responsibilities of a Claims Adjuster

• Evaluating Damages: The adjuster inspects the property damage and compares it to the policy to determine what’s covered.
• Providing Settlement Estimates: After assessing the damage, they give the insurance company an estimate of the payout.
• Negotiating Settlement: The claims adjuster works with you to negotiate the settlement offer the insurer will provide.

However, it’s important to note that claims adjusters work for the insurance company rather than for you. Their job is to save the company money by minimizing payouts, which may sometimes lead to lower settlements.

What Is a Public Adjuster?

A public adjuster, on the other hand, is an independent professional hired by the policyholder to represent their interests during the claims process. Public adjusters are experts in insurance policies and claims procedures. They work on behalf of the policyholder to ensure they receive the maximum compensation they are entitled to under their policy.

Key Responsibilities of a Public Adjuster

• Advocating for the Policyholder: Public adjusters represent you, ensuring your claim is handled fairly.
• Accurately Assessing Damages: They evaluate property damage thoroughly, using their expertise to accurately estimate repair or replacement costs.
• Negotiating with the Insurance Company: Public adjusters negotiate directly with the insurer to secure a higher settlement and get you the compensation you deserve.
• Handling All Claim-Related Tasks: They handle paperwork, filing deadlines, and all communications with the insurance company, reducing your stress and confusion.

Public adjusters are paid a percentage of the settlement, incentivizing them to secure a higher payout for you. Since they don’t work for the insurance company, their primary focus is maximizing your settlement.

Key Differences Between Public Adjusters VS Claims Adjusters

1. Who They Work For

• Claims Adjuster: Works for the insurance company and has the company’s best interests in mind, often trying to minimize payout amounts.
• Public Adjuster: Works for the policyholder and advocates on their behalf to ensure a fair settlement.

2. Goals and Motivations

• Claims Adjuster: Their goal is to settle claims for as little as possible, minimizing the payout to protect the insurer’s bottom line.
• Public Adjuster: Their goal is to maximize the payout for the policyholder by thoroughly evaluating damage and negotiating higher settlements.

3. Payment Structure

• Claims Adjuster: Salaried employees of the insurance company; they do not earn more if the claim settlement is higher or lower.
• Public Adjuster: Paid a percentage (usually 10-20%) of the final settlement; they have a financial incentive to get a higher payout for the policyholder.

4. Conflict of Interest

• Claims Adjuster: Since they represent the insurer, there’s a built-in conflict of interest. Their job is to minimize costs for the company, which may not align with the policyholder’s needs.
• Public Adjuster: No conflict of interest, as their sole responsibility is representing the policyholder’s interests.

5. Expertise and Independence

• Claims Adjuster: While trained to assess claims, their expertise is focused on minimizing payouts for the insurer.
• Public Adjuster: Public adjusters are experts in claims and are often more skilled at navigating complex claims, especially when the policyholder is entitled to a larger payout.

Why Hire a Public Adjuster?

While it’s tempting to trust the insurance company’s adjuster, a public adjuster offers several distinct advantages that can make a significant difference in the outcome of your claim:

1. Maximized Settlement: Public adjusters are skilled negotiators who ensure you receive the maximum compensation for your damages.
2. Stress-Free Process: Handling a claim can be overwhelming, especially if you’re already dealing with property damage. A public adjuster handles everything from paperwork to communications with the insurer, making the process much easier.
3. Expert Damage Assessment: Public adjusters are trained to look for hidden damages and ensure that all aspects of the damage are accounted for in your claim.
4. No Upfront Fees: Public adjusters work on a contingency basis, so you only pay if you win the settlement. This ensures that their interests align with yours.

FAQs

What is the main difference between a public adjuster and a claims adjuster?

A public adjuster works for you, the policyholder, to maximize your insurance payout, while a claims adjuster works for the insurance company, typically aiming to minimize payouts.

Should I hire a public adjuster for a small claim?

If the claim involves significant damage or complex circumstances, a public adjuster can help ensure you receive fair compensation, even for more minor claims.

How do public adjusters get paid?

Public adjusters typically charge a percentage of the final settlement, usually 10-20%, contingent on successfully securing a higher payout for you.

Can a public adjuster increase my insurance claim settlement?

Public adjusters are experts in evaluating claims and negotiating with insurance companies to secure higher settlements for their clients.

Do I need a public adjuster if my claims adjuster has already given me an estimate?

If you feel the estimate needs to be higher or more complete, hiring a public adjuster can help ensure that all damage is accurately assessed and you receive a fair payout.

Conclusion

In conclusion, while insurance company adjusters have a role in the claims process, their interests often align with the insurance company’s goal of minimizing payouts. Public adjusters, on the other hand, work solely on behalf of the policyholder, ensuring that your claim is handled fairly and that you receive the compensation you deserve. For a stress-free, professional claims experience with a higher likelihood of a fair settlement, consider hiring a public adjuster to represent your best interests.