When dealing with an insurance claim for your commercial property, you might encounter two types of adjusters: public adjusters and insurance company adjusters. Understanding the differences between these two roles is crucial to ensuring you receive a fair settlement for your claim. In this blog, we’ll explore the key distinctions between public adjusters and insurance company adjusters, and explain how each one serves different interests during the claims process.
What is an Insurance Company Adjuster?
An insurance company adjuster, often referred to as a staff adjuster or company adjuster, is an employee of the insurance company. Their primary responsibility is to assess the damage to your property, determine the validity of your claim, and recommend a settlement amount based on the policy’s terms and conditions.
Key Responsibilities of Insurance Company Adjusters
- Damage Assessment: Conduct on-site inspections to evaluate the extent of the damage.
- Policy Review: Interpret the insurance policy to determine coverage and exclusions.
- Estimate Preparation: Prepare an estimate for the cost of repairs or replacement.
- Claim Negotiation: Negotiate the settlement amount with the policyholder.
- Documentation: Maintain detailed records of the claim process and communicate findings with the insurance company.
Role and Priorities
Insurance company adjusters work for the insurance company, and their primary goal is to protect the company’s financial interests. While they are expected to handle claims fairly, their loyalty lies with the employer. This can sometimes result in lower settlement offers, as they aim to minimize the company’s payout.
What is a Public Adjuster?
A public adjuster is an independent professional hired by the policyholder to represent their interests during the claims process. Unlike insurance company adjusters, public adjusters work solely for the policyholder and are dedicated to ensuring the best possible outcome for their clients.
Key Responsibilities of Public Adjusters
- Damage Assessment: Conduct a thorough and independent evaluation of the damage.
- Policy Review: Analyze the insurance policy to understand coverage and identify applicable provisions.
- Estimate Preparation: Prepare detailed and accurate estimates for repair or replacement costs.
- Claim Negotiation: Negotiate with the insurance company on behalf of the policyholder to secure a fair settlement.
- Documentation: Compile comprehensive documentation, including photos, reports, and expert opinions, to support the claim.
Role and Priorities
Public adjusters are advocates for the policyholder. Their primary objective is to ensure that the policyholder receives the maximum settlement they are entitled to under their policy. Public adjusters bring expertise, experience, and an impartial perspective to the claims process, helping to level the playing field between the policyholder and the insurance company.
Key Differences Between Public Adjusters and Insurance Company Adjusters
Representation and Advocacy
– Public Adjusters: Represent the policyholder and work exclusively in their best interests. Their goal is to maximize the settlement amount to cover the full extent of the damage.
– Insurance Company Adjusters: Represent the insurance company and aim to minimize the payout to protect the company’s financial interests.
Compensation Structure
– Public Adjusters: Typically charge a fee based on a percentage of the settlement amount. This means they are motivated to secure the highest possible settlement for their client.
– Insurance Company Adjusters: Are salaried employees of the insurance company and do not have a direct financial incentive tied to the settlement amount.
Damage Assessment and Estimate Preparation
– Public Adjusters: Conduct comprehensive and independent damage assessments, often bringing in experts such as engineers or contractors to support their findings.
– Insurance Company Adjusters: Conduct assessments that are aligned with the insurance company’s guidelines and policies, which may result in lower damage estimates.
Negotiation Process
– Public Adjusters: Actively negotiate with the insurance company on behalf of the policyholder, leveraging their expertise and thorough documentation to advocate for a fair settlement.
– Insurance Company Adjusters: Negotiate settlements based on the insurance company’s interests, which can sometimes lead to lower offers for the policyholder.
Benefits of Hiring a Public Adjuster
Expertise and Experience
Public adjusters bring a wealth of knowledge and experience to the claims process. They understand the intricacies of insurance policies and claims procedures, allowing them to navigate complex cases effectively.
Objective Damage Assessment
Public adjusters provide an objective and impartial assessment of the damage. Their evaluations are thorough and detailed, ensuring that all aspects of the damage are considered and properly documented.
Higher Settlements
Studies have shown that policyholders who hire public adjusters often receive higher settlements compared to those who handle claims on their own. Public adjusters are skilled negotiators who advocate for the maximum compensation.
Time and Stress Management
Handling an insurance claim can be time-consuming and stressful. Public adjusters manage the entire claims process, from initial assessment to final settlement, allowing policyholders to focus on other important matters.
When to Consider Hiring a Public Adjuster
Large or Complex Claims
If you are dealing with a large or complex claim, such as extensive damage from a natural disaster, hiring a public adjuster can be particularly beneficial. Their expertise can help ensure that all aspects of the damage are properly evaluated and compensated.
Disputed Claims
If you disagree with the insurance company’s assessment or settlement offer, a public adjuster can provide a second opinion and negotiate on your behalf to achieve a fair outcome.
Limited Time or Resources
If you do not have the time, resources, or expertise to manage the claims process, a public adjuster can handle all aspects of the claim for you, ensuring that it is managed efficiently and effectively.
Maximize Your Claim: Choosing the Right Adjuster for Your Needs
Understanding the differences between public adjusters and insurance company adjusters is crucial for navigating the insurance claims process effectively. While both types of adjusters play important roles, they serve different interests. Public adjusters represent the policyholder and work to secure the best possible outcome for their clients, while insurance company adjusters represent the insurance company and aim to protect its financial interests.
Your Advocate in the Claims Process: D.A. Lamont Public Adjusters
At D.A. Lamont Public Adjusters, we are dedicated to representing the interests of commercial property owners. Our experienced team of public adjusters provides comprehensive damage assessments, expert policy reviews, and skilled negotiation services to ensure you receive the compensation you deserve. We manage the entire claims process, from initial assessment to final settlement, allowing you to focus on running your business.
If you are dealing with an insurance claim and need expert assistance, contact D.A. Lamont Public Adjusters today. Contact us today here or call us at 800-342-6690 to schedule a consultation. Let us help you navigate the complexities of the insurance claims process and secure the best possible outcome for your claim.