Navigating The Claims Process: Dealing Directly Or Through A Fire Insurance Adjuster

Dealing with insurance companies and adjusters after a house fire can be a stressful and overwhelming experience. The process of filing an insurance claim can be challenging, especially when you are already dealing with the trauma of losing your safe space. It is important to know your options and understand the role of insurance adjusters to ensure you receive a fair settlement.

There are three types of insurance adjusters: staff, independent, and public

Staff Adjusters

Staff adjusters, also known as company adjusters, work directly for insurance companies as full-time employees. They are paid by the insurance company and do not charge a percentage of the claim payout. When a claim is filed, the insurance company sends a staff adjuster to investigate.

Independent Adjusters

Independent adjusters work for independent adjusting firms and are hired by insurance companies on a contract basis. They are not direct employees of any insurance company but work on behalf of insurers. They are typically hired when there is a high demand or when their specific expertise is needed.

Public Adjusters

Public adjusters are hired by claimants or policyholders and work on their behalf. They are paid a percentage of the final settlement amount, typically ranging from 5% to 20%. Public adjusters help claimants get the highest possible settlement from the insurer. They are experts in insurance policies and claims, often having prior experience in construction or a related field. They can assist in filing and negotiating claims, ensuring the insurance company pays the full amount it is responsible for.

A public insurance adjuster works for you, the policyholder

Public adjusters are experts in the details and language of insurance policies, as well as filing and adjusting claims. They can help you file and negotiate claims for flood, fire, smoke, wind, and hurricane damage, as well as damage due to other perils, and even loss of business income if it's caused by property damage. They often have prior experience in construction or a related field.

• Use sophisticated software to perform an independent evaluation of your property loss.
• Gather highly detailed claim information that may be challenging for a policyholder to compile alone.
• Log and submit initial and supplemental claims on your behalf.
• Help you negotiate with contractors and insurers.
• Save you significant time and labour, and protect you from any pitfalls due to inexperience.

Public adjusters charge a fee for their services, which is usually a percentage of the total claim payout. This fee varies between adjusters and is typically capped by local or state law. For example, in Florida, public adjuster fees cannot exceed 20% of a reopened or supplemental claim limit.

Before hiring a public adjuster, it is important to check their credentials and ensure they are licensed to work in your state. You may also want to get a referral from an acquaintance or check reviews online.

A staff insurance adjuster works for a single insurance company

A staff insurance adjuster, also known as a company adjuster or employee adjuster, works for a single insurance company. They are full-time employees who work with claimants for the organisation that employs them. For example, if they work for Allstate, they will only handle claims for Allstate customers. They are paid exclusively by that company.

Staff adjusters handle a variety of claims, including auto accident claims, house fire claims, property damage claims, and commercial insurance claims. They communicate with the claimant throughout the entire claims process, reviewing all information relating to the incident, including photos, videos, receipts, police reports, witness statements, repair estimates, and more.

Staff adjusters are typically paid a salary, and they often receive standard employment benefits like insurance, vacation and sick leave, and company equipment. Their salaries can range from $40,000 to $70,000, with entry-level salaries averaging about $40,000.

When dealing with a claim, a staff adjuster will determine the reimbursement to the claimant. In cases of extreme damage and repair costs, the adjuster may determine the claim to be a total loss and will look at replacement value comparisons in the claimant's area to determine a fair replacement value.

In some cases, an outside staff adjuster may be assigned to physically review the claim and assess the damages. They work in tandem with inside staff adjusters, who do not physically travel to review the damage. Together, they put together the reimbursement package for the claimant.

An independent insurance adjuster works for multiple insurance companies as a third-party investigator

An independent insurance adjuster is not directly employed by an insurance company but is hired by an insurer when a claim is made. They are considered independent because they work for a third-party company that specialises in insurance claims. In other words, they are contracted as a third party, and the insurer outsources the claim and the adjustment process to a claims-handling company, who then turns it over to one of their adjusters.

Independent adjusters are typically hired because there is a high volume of claims. For example, during times of natural disasters, the number of homeowner claims increases substantially. Insurance companies often do not have the human resources to handle this type of responsibility and will hire independent adjusters to ease their workload.

An independent adjuster does not represent the homeowner. If a homeowner requires their own representation, a public adjuster might be the best option. Public adjusters work solely on behalf of the homeowner and do not represent an insurance company in the negotiations. They are hired by claimants rather than insurers and are paid a commission from the recovery.

Independent adjusters are usually paid based on the number of claims and the size of the claims handled. They are flexible and can take on the contracts they want, from employers they trust, and many will take time off after long deployments.

A public insurance adjuster charges a percentage of your settlement

A public insurance adjuster is an independent trained insurance professional that helps individuals with the insurance claim process. They work for the policyholder, unlike company adjusters, and charge a fee for their services.

Public adjusters charge a percentage of the total claim payout, which can be anywhere from 3% to 30% of the final settlement amount. This fee is usually capped by local or state law and can be negotiated for large claims. For example, in Florida, public adjusters cannot charge more than 20% of a reopened or supplemental claim limit.

Public adjusters are often more thorough in their damage analysis than company adjusters because they are trained in this area and their loyalties lie with the policyholder. They can help evaluate damages, estimate repair or replacement costs, help you understand your insurance policy, track the claim, file documents, meet deadlines, and negotiate with your insurance company to achieve a fair payout.

• You are filing a large, complex, or high-value claim for significant damage to your home, such as fire or windstorm damage.
• You are unsure about the assessment or feel that your insurer's adjuster has underestimated your claim or given you an unfair payout.
• You need assistance with a complex claim or the claims process, especially if you are busy or don't have the time to deal with the time-consuming payout process.

Frequently asked questions