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.