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Public Adjusters
(Fee charging aduster)
What is a Public Adjuster?
Do not confuse the term "Public Adjuster" with "Adjuster". The term "Adjuster" as used in the insurance industry means a person or firm hired by the insurance company whose job is to fairly determine the amount of money due you under the terms of the insurance contract. There is no fee charged to you for this service.
The "Public Adjuster" is a fee charging adjuster who is contracted by you to negotiate with the insurance company, on your behalf, to determine the amount of money due you. This is done by a binding contract between you and the public adjuster. There is no guarantee you will be happy with the outcome.
His fee is paid by YOU and is subtracted from your total claim, not added to it.
His fee is a percentage of your entire claim. This percentage is generally between 10% and 25%. If your claim is $10,000 and your
public adjuster charges 25%, you will receive a net of $7,500. From this net figure you must pay the contractors, replace your furniture and clothes, all other fees and bills, .
Generally speaking all communications between you and your insurance company (or us) must go through your public adjuster. This, quite often can cause delays
Should you hire a public adjuster?
Generally speaking we would advise against hiring a public adjuster for several reasons.
(1) Frequently they contact you when the fireman are still on the scene and you are in a very emotional state of mind. There are severe restrictions for them trying to conduct their business during the first 24 hours after the fire. Read your rights. We suggest you wait at least a week or two before dealing with them. Your insurance company will advance you money for your immediate expenses and might make you a proper settlement during that time or well on it's way of making that offer. If things are going badly the public adjusters will still be available to you.
(2) They slow down the settlement process because all communications must go through their office.
(3) They control all of your money.
even money advanced to you for emergency expenses.
(4) Direct communications between you and the insurance company are shut off completely.
We would still try to help you but would be somewhat limited.
(5)Generally they do not save you money the because we have found the
regular adjuster does a good job. If the insurance company adjuster does not perform to your expectations, the public adjuster
can be hired at that time. Your emotions will be more under control and your mind clearer to negotiate the contract.
Tips in hiring a public adjuster
If you have a large property claim and are considering a public adjuster, ask yourself two questions: First, is your company acting quickly to replace your losses? Second, have those efforts been effective and fair?
If the answer is "No" to either of these then perhaps it is advisable to hire someone to represent you.. Before hiring one, read your rights and the protection provided you by the law.You are in a better position to negotiate and understand their contract if you know your rights.Any questions can be directed to us, The New Jersey Department of Insurance, your accountant, your county's comsumer department. The last thing you want is someone who will inflate your claim to a point that borders fraud.
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