As an insurance agency owner, I have numerous experiences involving public adjusters.

In my experience their services are not necessary. And yes, in most situations they make working with an insurance company more difficult.

When one drills down on how public adjusters operate, the reasons why they make working with an insurance company more difficult include:

• One of their primary means of finding potential clients is through monitoring EMS scanners. Thus the reason some call them fire chasers.
• Much of their “sales pitch” intends to drive a wedge in the relationship between the insured and the insurance company.
• The public adjuster “fee” is negotiable on a broad scale from 5% to 20%. How do these firms justify the 5 to 20% they charge? I’ll leave it up to your imagination how that narrative is constructed.
• Most public adjuster contracts require that the adjusting firm be paid directly rather than the insured.
• States have imposed restrictions and contractual limitations on public adjusting firms (See: 2012 Act 21) to protect the consumer.

Over three decades of experience in the insurance business, I’ve witnessed numerous circumstances where losses have occurred, and public adjusters have been utilized. In a limited number of cases, the services of a public adjuster are warranted. However, in the majority, they are not.

After disclosing the fact that I’m an agent, some might wonder if I have a jaded view about the use of a “public adjuster”. That’s a fair question. Most agents abhor the use of public adjusters. But why?

Most insurance agents simply want their clients to be satisfied when their insurance claim is completed. Our business model is dependent on that occurring, and most agents will do what they can to see that happen. An additional party to the settlement of a claim complicates the circumstance and invites an adversarial relationship.

My perspective on public adjusters is simply this,  if a client is unable or unwilling to handle the work necessary to organize and  present a legitimate claim to their insurance company, then a “public adjuster’s” services may be warranted.

Most US insurance companies are very sensitive about their reputations. There are regulatory and social construct reasons why that is the case. If you deal fairly with an insurance company, they are bound to do the same. 

Plain and simple, the use of a public adjusting firm adds another layer to the process of adjusting a claim. There is no escaping that fact. The use of a PA firm complicates the process. There may be legitimate reasons why you as an insured might use a public adjusting firm. Those cases are limited to when the insured is unwilling and/or unable to perform their required duties following a loss.

Do you have additional questions about the best way to manage your insurance needs?  We LOVE to help!  Please feel welcome to call us at (607) 324-7500, or contact us via the information found here.