When Do I Need A Public Adjuster

Karl wanted to SCREAM. It had been two months since the fire and nothing had happened. He was crammed into a hotel room with his wife and three kids, five restoration contractors were hounding him daily to hire them for the job and the insurance adjuster wouldn't return his calls to tell him if the claim was even covered. If something didn't happen soon, he was going to explode.


When a fire or flood damages your property, most insurance companies are quickly on site offering assistance and helping to resolve the owners problems. Restoration contractors also have the knowledge and experience to guide a family through the process of repair and claim resolution. With the insurance adjuster working in tandem with a good contractor, most claims are settled in a manner and time that is acceptable to all. But, occasionally, this type of care and service is just not there. When that happens, an owner needs additional resources to protect their interests.


A public adjuster (PA) is an independent adjuster that is hired by the owner. Just as the insurance adjuster looks after the interests of the insurance company, the public adjuster looks after the interests of the insured. Many Insurance companies do not pay for the services of a PA, so they will usually charge you a percentage of the claim, much like a personal injury lawyer. Some states mandate that they charge an hourly rate for their services rather than a percentage. 


It is important to discuss their terms and conditions before hiring a public adjuster. Without exercising due diligence, you can find your claim settled, finalized with the insurance company and not have enough money to make your repairs after the PA is paid.


There are fundamental differences in the approaches of public adjusters versus insurance adjusters. Insurance companies like to take a minimalistic approach to repairs. They want contractors to only estimate what obviously needs to be done and nothing more. Because this initial estimate may seem low, many owners are concerned that they will end up on the short end of the stick and not have all the work done. 


To compensate for this, the insurance companies leave claims open for a period of one to two years from the date of the loss. Any additional work that is required or undisclosed damage that comes to light within this period, is usually always covered by the claim and repairs will be paid for.

Public adjusters, on the other hand, want to finalize the total claim up front. Their estimates usually reflect everything that could possibly be wrong, or could go wrong, in the course of the reconstruction. This would include several items that might need to be done, but actually never are done. Because insurance companies never want to pay for something that didn't happen, and many policies stipulate that they are only obligated to pay the actual costs of repairs; long, drawn-out legal battles can ensue before an amount is agreed upon. 


It is not uncommon for claims handled by public adjusters to end up in court or arbitration. Once the claim is settled and the PA paid, the owner must know that there will still be enough left to adequately make the repairs.


Most insurance companies are concerned about their long term relationship with a policy holder and do their best to settle a claim with fairness and integrity. In most insurance claims, a public adjuster is not needed.

’Tis the Season for Fires

Tears rolled down Carla’s cheeks as she surveyed the room. The firemen were gone, the Christmas tree was gone, the presents were gone and Merry Christmas was the last thing she wanted to hear. Black piles of charred junk now decorated the living room floor. The fire that had started so quickly was now only a terrible memory.

The Holidays, while filled with excitement and wonder, also have their peculiar disasters. Foremost among these are fires. Nothing can ruin the Spirit of Christmas faster than to have the pleasant scent of pine cones and holly berries replaced with stench of smoke. Here are some Holiday Disaster Survival Tips to consider.

Christmas Trees – Live trees need to be properly cared for to prolong their life and retard the drying process. Pre-cut trees from commercial lots are typically harvested during October to allow for shipping to the retail outlets. Because the weather is colder in the mountains, and the trees are bundled tightly together, the loss of moisture is minimal. Once you stand the tree up in your warm house, heat sucks the moisture out. This will create a fire hazard in a week or less. To prevent this, cut 2”-3” off the trunk of the tree before you place it in the stand, (a stand that will hold water). Immediately add water before the sap can ooze out of the tree and plug the pores. You have about 10-20 minutes. Check the reservoir and add water every day for the first week and as needed thereafter. If properly cared for, a tree should remain vibrate and healthy all through the Christmas Season.

Lights – Fortunately, traditional lighted candles have been replaced with electric lights. In the past few years, low voltage mini-lights have also grown in popularity, reducing the risks of fires. It is important to check all light strings for any frayed connections, loose lights or broken insulation. Generally, any lights strings with damage should be replaced. Light strands also have a limit on the number of strings you can plug together. Read the warnings to determine how many you can safely link.

Outlets – With all the strings of lights, motorized decorations and electrical features, most people find that there are too few outlets in their home or they are located in the wrong place. The temptation arises to use multiple splitters and extension cords. This can cause an overload that will trip or blow circuit breakers. It will even melt wires, causing fires to start. Extension cords that run across the floor not only become tripping hazards, but can be worn through from the traffic, even if covered with a rug, and create a short.

Cooking – Christmas always means more baking. Cookies, turkeys and homemade candy help to make the season bright. The large majority of kitchen fires occur when the cook is distracted and food is left unattended. Even if the fire is restricted to the stove or microwave, the resulting smoke and soot can take days to properly clean-up. Try to limit the number of multiple tasks you do. This will not only prevent fires, but will also produce tastier goodies.

Fireplaces - Many families, mine included, like to burn the used wrapping paper in the fireplace. A large armful of paper will ignite quickly and the flames can spill out the front of the fireplace opening. These flares can burn the participants or items on the mantle. Feeding the fire with smaller amounts will allow you to control the situation.

Plan ahead, be wise and you can keep every holiday a pleasant memory.

Preventing Frozen Pipes

"Frozen pipes, how did that happen?" Peter was furious as he surveyed the damage to the laundry room. The spray from the water had literally pealed the paper from the drywall. White mud a quarter of an inch deep covered the floor, and everything else in the room. What a mess.

As the temperature begins to drop, there are several things homeowners can do to protect their pipes from freezing. Even though most of these types of damage are covered by insurance, prevention is definitely worth a pound of cure. Set aside a time each fall to check the following areas of your home.

Hose bibs or exterior faucets. Make sure the hose is disconnected. Most faucets are designed to drain the water out of the pipe up to 12 inches back inside the house. When the hose
is attached, a suction is created that does not allow the water to drain and this water will freeze and split the pipe. Those faucets that are not frost free, should be covered with Styrofoam domes available at most hardware or lumber stores.

Un-insulated pipes. These are most commonly found in attics and crawl spaces. Attic pipes should have adequate insulation on the top and ideally, little or no insulation between them and the ceiling. This allows the heat from the room below to rise and be trapped around the pipe. Plumbing in crawl spaces should have insulation wrapped around them, especially if they are close to foundation vents, combustion air ducts or dryer vents.

Rooms with water lines in the outside walls. These pipes should have insulation on the outside and be exposed to the heat from the room on the inside. Unfortunately if they were not insulated properly, an owner will likely not know this until there is a frozen pipe.

Empty homes. If a building has to remain vacant for any period of time during the winter, it is best to have a plumber properly winterize it. This usually costs several hundred dollars, but will save tens of thousands of dollars. When a home is unoccupied, any leaks are usually not discovered for days or even weeks. This delay multiplies the damage caused by even a simple leak. Many insurance companies will also void the policy if a vacant structure has a loss and wasn't winterized or heated.

Ice dams on the roof. The best defense is heat cable along the eves of the house. The cable should be installed in the gutters and downspouts as well. It is also much easier to install this in the summer or fall rather than in the dead of winter with two feet of snow on the roof.

If you can follow these simple precautions each fall, you will go along way in preventing frozen pipes.

Tips to Prevent Floods and Water Damage

Sarah stood ankle deep in cold water. A child’s toys floated by. Across the family room, water cascaded over the window sill and spilled onto her new carpet. The piano, her new sofa and the big screen TV were all submerged. Why did this happen and what could she have done to prevent it?

There is no guarantee that you will never have a flood or water damage in your home, but there are some tips to prevent them. I have listened to frustrated customers passionately tell me that they will never leave their home again without turning off the main water line. This would be effective if all floods only occurred while the home was empty. You would also need to have the City turn off the water lines and sewer drain lines to the neighborhood. Oh, and how do you convince God to never let it rain while you are gone?

In truth, most water losses occur while we are in our house using the water. It is characteristic that a valve or fitting ready to fail will do so as the water is turned off.

The water lines in your home generally have 40-60 pounds per square inch (psi) of water pressure. This pressure is the force that pushes the water out of the faucet when you use it. If the water is turned on, the pressure in the pipe drops to nearly zero. As the water is turned off, the pressure instantly jumps back up to 40-60 psi. This sudden increase in pressure from 0 to 60 pounds is enough change to break the weak link in your water system that has been waiting for just the right opportunity.

Because there is no way to totally prevent water damage, we need to concentrate on the preventative measures we can take to limit our exposure and risk. The best method is inspecting your house regularly to find the potential break-before it does break. It doesn't mean you need to take a flashlight and a clipboard and crawl around the house every Saturday morning, because we all know that will not happen.

The best form of inspection is to simply be aware.

• When you turn off a faucet, does it drip?
• Are there white or green deposits on valves, pipes or other water connections?
• Is the floor of the sink cabinet damp or show signs of water damage?
• Is the grout or caulk in the tub or shower chipped, missing or have black discoloration?
• Is there a rusty stream of water or rusty stains coming from under your water heater?
• Are there rust spots on the carpet when you move a piece of furniture that has metal legs or gliders?
• Are there blisters or bubbles in the paint or drywall tape on the walls, especially on outside walls?
• Do you notice a musty odor in any room of the house, especially in the basement?

A "yes" to any of these questions indicates you have or will have a water problem. The size and cost of the problem is directly related to how quickly you remedy the situation. Procrastination will always increase the costs and in some cases, void your insurance coverage. Learn to be pro-active in maintaining your home by being observant and aware. As you are able to prevent water damage, you will find yourself saving money, time and resources.

What will my insurance company cover in a water loss?

Each insurance policy is different and you will need to speak with an insurance adjuster to determine exactly what your insurance company will cover in a water loss.

Most companies cover the water damage resulting from broken or frozen pipes within the perimeter of the building. A simple way to determine if a loss is covered is to remember that your policy usually covers your home, that is the building. Accidents that happen to or within the building are usually covered. This would include valves that fail, pipes that break or freeze, washing machine hoses that split, sink supply lines that pop off, any appliance that has water and malfunctions or accidents such as forgetting to turn off the sink or tub.

Most companies do not pay for the repairs to the source of the problem, only the resulting damage. Example: if your water heater ruptures and floods the basement, the replacement of the water heater will likely not be covered. The rest of the damage, from drying the structure to replacement of drywall and carpet, probably will be.

The exception to this rule is in the case of a frozen pipe. The freezing water is considered the source and the split pipe is part of the resulting damage and usually your insurance company will cover this in a water loss.

Most companies also cover the damage from drain line blockages, providing the blockage is within the foundation of the building. This would include toys or diapers that clog the toilet and make it over flow or broken drain lines that cause damage. The test of coverage is if the plug or break is within the foundation of the home. Those companies that do not offer sewage back up as part of the standard policy may allow you to purchase coverage as a rider.

Sewage back ups outside the foundation of your home, fall under another category. If the blockage is between your foundation wall and the curb, most companies do not cover this type of loss. If the blockage or break is in the street, beyond your curb, it is often, but not always, covered by the City or water district that owns those lines. If liability is accepted, coverage can range from a flat payment of $2500 toward all the cleanup and repairs up to paying for the complete repair and replacement for all the damage. Costs for sewage backups usually start at $2,000 and can easily go up to $20,000 to $30,000, depending on the extent of the back up. It is important to determine who is liable and what they are paying before you begin the clean up and repairs.

Coverage for water from the outside is a multi-faceted issue. Some companies will cover a loss if the outside water is from a plumbing source, (sprinkler line, main water line, etc.) Others will only cover it if the water is from a plumbing source and it enters the house through an opening, (a door or window.) But others will not cover water from the outside regardless of the source or entry point. It is good to discuss this with your agent so you have a solid understanding of what your insurance company will cover in a water loss.

Sponsored by Utah Flood and Fire Network

Four Rules to Survive a Disaster

Whether its a flood, fire or earthquake, here are four rules everyone needs to know to survive a disaster. Careful attention to these principles will save owners, adjusters and restoration companies countless hours of headaches and heartaches.

Rule 1 - My damages are my responsibility. Restoration companies are here as part of the solution, they are not part of the problem. I must always place the liability on the right entity.

Rule 2 - Things break. That is why I have a disaster. The restoration company's job is to repair my home as close as possible to its pre-loss condition, but sometimes, they can only make the imperfect look perfect.

Rule 3 - Everyone is busy. I have budgeted neither time nor resources for this problem. Before I called, the contractors were also busy repairing the property of other people. But, as I do my best to make decisions and provide access to my property during regular business hours, they will do their best to complete the work as soon as possible and practical.

Rule 4 - Restoration is a lot like pregnancy. It always takes longer than we want and the last two weeks can be unbearable.

Now you know the four rules to survive a disaster.