What Property Owners Need To Know About How Their Insurance Claims Are Assessed

A claims adjuster is someone who investigates insurance claims to determine whether the claims are legitimate and what compensation should be paid. Often, the adjuster is an agent employed directly by the insurance company that is being asked to pay a claim but, in some circumstances, outside adjusters are contracted to investigate a claim. In those cases, outside adjusters, either independent or public, may be called in.

When Are Outside Adjusters Needed?

In 2017, Hurricane Harvey hit southeast Texas, causing floods that did record amounts of damage. After the hurricane passed, there were almost 670,000 insurance claims for both personal and commercial property damage made to the private insurance companies that served the area. This catastrophe is an example of the types of situations that call for outside adjusters since no insurance company had sufficient staff to investigate all the claims they received. Another circumstance that might require the services of an independent insurance adjuster is a claim requiring highly specialized knowledge or expertise, such as a claim for damage to property that is isolated and hard to access or damage to a rare collection of some kind.

What Is An Independent Adjuster?

This type of adjuster is hired by an insurance company to assist with a high volume of claims or to meet certain statutory requirements. They may be hired individually as independent contractors or insurance companies may contract with an adjusting firm. Adjusting firms are likely to offer comprehensive services, and a large firm may have agents available throughout the country. Adjusting firms provide service for catastrophes, large losses, overflow claims, re-inspection, and underwriting, in addition to daily claims of all kinds.

What Is A Public Adjuster?

A public adjuster is an adjuster who is hired directly by the home or property owner. These adjusters usually work on a commission based on the amount of recovery, meaning they are motivated to represent their clients' interests. Property owners may choose to hire a public adjuster if they are concerned about getting sufficient compensation for a large loss or if they disagree with the assessment of their claim made by their insurance company. It is not always necessary or advisable to hire a public adjuster, as insurance companies and private adjusting firms have many incentives to treat claims fairly.

Understanding the different types of adjusters can help homeowners and business owners navigate the complexity of making an insurance claim. Fortunately, the majority of claims are handled to the property owner's satisfaction.