The Takeaways
- A Public Insurance Adjuster will provide a second set of eyes on all facets of your insurance claim.
- Heavy claim loads, overbooked time schedules, and lack of proper training may unintentionally cause your insurance company adjuster to make mistakes.
- A Public Insurance Adjuster can charge hourly, a flat rate, or a contingency fee.
- The Texas Department of Insurance has strict laws that ensure your Public Insurance Adjuster cannot charge more than 10% of the total amount of the loss.
When providing consultations for potential clients, one question I hear time and again is, "Will a Public Insurance Adjuster really increase my insurance claim settlement?".
Short answer: For most claims, yes.
Most clients want to believe that their insurance companies will take care of them, but they understand that insurance companies are businesses that have bottom lines to protect. This tends to create a great deal of animosity for those who want to ensure they are receiving exactly what they are owed.
Why The Initial Settlement Is Low
We know insurance claims can be very confusing because it is highly uncommon for folks outside of the industry to have much-repeated experience in dealing with one. As a result, most clients understand that they are unequipped with the various complexities of an insurance claim and they want the strategic assistance of a Public Insurance Adjuster. This assistance comes at a cost, of course, which leads folks to the logical question as to whether or not the increase in claim value outweighs the cost of the Public Insurance Adjuster’s fees. So, again, the question arises, "Will a Public Insurance Adjuster really increase my insurance claim settlement?".
A Public Insurance Adjuster provides a second set of eyes on the loss. This second look often reveals insurance company adjuster errors such as missed property damage, inappropriate repair methodology, or overlooked estimate operations. It is not necessarily that the insurance company adjuster wants to make mistakes; however, heavy claim loads, overbooked time schedules, and lack of proper training may unintentionally cause the aforementioned errors. And let's be honest... In a few cases, the person inspecting for damage or writing the estimate is just bad at their job and doesn't really care. One accidentally overlooked operational item or missed property damage could easily result in thousands of dollars in unaccounted-for items. The result should be a situation where your Public Insurance Adjuster has increased the insurance settlement so that it pays his/her fees for which the increase in claim value is greater than the fees.
How Do Public Insurance Adjuster Charge?
Pubic Insurance Adjusters have multiple ways to structure their fees to ensure the client is getting the best possible service for a fee that makes sense financially. Meaning, the Public Insurance Adjuster’s fees, once paid, do not leave the client with a lower settlement value than if they had not hired a Public Insurance Adjuster in the first place.
Okay… So what might a Public Insurance Adjuster’s fee look like?
Hourly Rate
For some smaller claims, an hourly rate might make the most sense for a given situation. Hourly rates for Public Insurance Adjusters can be as low as $350.00 per hour up to $750.00 per hour depending on the geographic location and the tasks at hand.
Flat Rate
For large claims or claims where the Public Insurance Adjuster can handle with certainty of a quick resolution, a flat rate may be the best option. Flat rates can vary widely depending on the complexity of the claim and the length of time required.
Contingency Fee
Most claims tend to be handled on a contingency fee which is a percentage of the entire claim value. Each state has very strict laws about how much your Public Insurance Adjuster can charge which is usually capped between 10% and 20%.
No-cost Consultations
Once a payment structure is outlined, an experienced Public Insurance Adjuster should be able to provide a detailed explanation of the fee as well as come settlement projections that support why the selected fee structure is most appropriate. In doing so, the Public Insurance Adjusters should be able to clearly illustrate that they are adding exponentially more value to the claim even when their fee is deducted from the settlement. Most importantly, many Public Insurance Adjusters will provide you with a no-cost consultation to determine if there is an opportunity for a claim increase in the first place.
For those clients who remain skeptical, I have seen Public Insurance Adjusters present a sliding fee schedule or guarantees which simply provide additional peace of mind for those clients who may not be full-fledged believers upfront.
