It’s every homeowner’s worst nightmare – a hurricane has destroyed your home and now it’s time to make an insurance claim. Will you get fair compensation from your insurance company? The process of rebuilding and the costs invovled can be very overwhelming. Add trying to figure out how your insurance will help and you've got one stressful situation. That’s why some people turn to public adjusters who represent them when dealing with insurance claims. If you're wondering "should I hire a public adjuster?" read on for more advice.

"The best time to hire one is before the insurance adjuster comes down to inspect your property,” says Buddie Greenberg, president of National Public Adjusters in Yonkers, NY. “Would you want to go into court before hiring an attorney?”

The Pros and Cons of Hiring a Public Adjuster

Why hire a public adjuster?

According to the Insurance Information Institute, a public adjuster is hired by the business or residential property owner to assist with an insurance claim. The public adjuster is hired to advocate for you and to pick up the bulk of the claims legwork. They typically help file the claim, work with the insurance company’s adjuster and secure the settlement.

A public adjuster should not ask for a deposit or payment up front as they’re paid at the end of the claims process. Public adjusters don’t have a relationship with your insurance company and they’re paid a percentage of your final claim payment - usually around 10 percent - but may go as high as 15-20 percent depending on the size of the claim and the public adjuster you’re working with. Smaller claims typically carry a higher percentage than larger claims. After a disaster, your state insurance department may set a percentage that public adjusters are allowed to charge you, the III says.

When should you hire a public adjuster?

Greenberg says adjusters are typically called in for large property-damage claims. While there is no minimum, his office, which handles cases in New York, Connecticut, Maryland, and Florida, usually involve claims of $25,000 or more, though he says he has taken smaller cases in the past. Generally, a public adjuster is called with claims of $10,000 or more, according to Bankrate.com.

Dealing with insurance adjusters can be challenging for a public adjuster, Greenberg says, but even more daunting for individuals to go it alone.

“It's not a fun business, you have to have thick skin,” Greenberg said. “When I first started this business - it used to be fun. Today, (the insurance companies’ adjusters) have one supervisor over another who have oversight. The supervisors who make rulings are usually not even from your area.”

Public adjusters recommend that they be called immediately or very early into the claims process. Some property owners call a public adjuster once they run into issues with their claim, but bringing the adjuster in in the ninth inning can mean more delays - even up to 60 days, according to an article on Bankrate.com.

The drawbacks of hiring a public adjuster

Critics say hiring a public adjuster can waste valuable claim payment money. An article on independent-adjuster.com suggests that essentially people are reducing their reimbursement in order to pay a public adjuster.

“The truth is that all insurance adjusters work for your insurer, public adjusters included. How is this possible? As mentioned, P/A’s work for a percentage of the claim settlement,” the article states. “This means that the public adjuster has to raise the dollar amount of the insurance claim intentionally just to make his services appear worthwhile to the insured, or otherwise clearly indicate to the insured policy holder they will lose money immediately by hiring a public adjuster. “

But Greenberg disagrees. He says that public adjusters typically result in the property owner getting a more fair settlement than if he or she had pursued it alone. The Bankrate article referred to a Florida study in 2008 and 2009 that showed policyholders who hired public adjusters generally receive higher settlements. The study showed that the average settlement involving a public adjuster was $22,266 compared to $18,659 without one.

How to find a good public adjuster

If you decide to go the public adjuster route, then shop around, like you would your insurance policy. Like any industry, there are good ones and not so good ones.

Greenberg says there are obvious signs when a public adjuster isn’t working for you. Some warning signs include:

  • Unreturned phone calls: The public adjuster should return your calls promptly. Your public adjuster is working for you and should be responsive.
  • Same answer over and over: Your public adjuster should be making headway. If they keep telling you that the insurance company isn’t responding, there might be an issue. (Greenberg says in cases where this happens, he’ll include the client on a three-way call to the insurance company).

When trying to find an adjuster, online reviews on sites such as Angie’s List, can help you get started. The III also recommends property owners check references, call your state’s Better Business Bureau or your state insurance department to find an adjust you can trust.

Hopefully before you need to file a claim, you have good insurance coverage in place. Call an InsuraMatch insurance advisor today at (844) 824-2887 to review your coverage and compare quotes from leading insurers to get the best coverage at the best rate.