What are the differences between a Public Adjuster and an Insurance Adjuster?
In the aftermath of property damage or loss covered by homeowners insurance, navigating the claims process can be complex and overwhelming. Amidst the flurry of paperwork, assessments, and negotiations, understanding the roles of key players like public adjusters and insurance adjusters becomes paramount.
Let’s go into the differences between these two professionals to shed light on which may be the best fit for your needs.
Public Adjuster: Advocates for Policyholders
A public adjuster is an insurance claims specialist who works exclusively for policyholders, representing their interests throughout the claims process. These professionals are licensed by the state and operate independently of insurance companies. Their primary responsibility is to ensure that policyholders receive fair and just compensation for their losses.
When filing a claim, policyholders may choose to hire a public adjuster to work on their behalf. Unlike insurance adjusters, who are employed by insurance companies, public adjusters serve as advocates for policyholders, striving to maximize their settlement amount.
Insurance Adjuster: Employed by Insurance Companies
On the other hand, insurance adjusters, also known as claims adjusters, are employed by insurance companies. Their role is to assess the extent of damage or loss, investigate the circumstances surrounding the claim, and determine the appropriate payout according to the terms of the policy.
Insurance adjusters work full-time for the insurance company and are tasked with protecting the interests of their employer. While they are trained professionals who are knowledgeable about the claims process, their allegiance ultimately lies with the insurance company that pays their salary.
Key Differences in Approach
One of the main differences between public adjusters and insurance adjusters lies in their allegiance and who they represent. Public adjusters exclusively advocate for policyholders, working tirelessly to ensure that they receive the maximum compensation to which they are entitled under their homeowners insurance policy.
In contrast, insurance adjusters represent the interests of the insurance company. While they are obligated to handle claims fairly and in accordance with the policy terms, their primary goal is to mitigate losses for the insurance company and protect its bottom line.
Who Works for Whom?
Another important distinction is who pays for the services of each type of adjuster. Public adjusters are hired and paid by policyholders. They typically work on a contingency fee basis. This means they only receive payment if they successfully negotiate a higher settlement amount for the policyholder. This fee is usually a percentage of the final settlement.
Insurance adjusters, on the other hand, are paid by the insurance company. Their salary and expenses are covered by the insurer, and they have no financial incentive to increase the settlement amount for the policyholder. In fact, their performance may be evaluated based on their ability to minimize payouts and resolve claims quickly and cost-effectively.
Expertise and Experience
While both public adjusters and insurance adjusters are trained professionals, public adjusters often bring a higher level of expertise and experience to the table. Because they work exclusively on behalf of policyholders, public adjusters have a deep understanding of homeowners insurance policies, the claims process, and how to negotiate with insurance companies for a fair settlement.
Insurance adjusters, while knowledgeable about the claims process, may be juggling multiple claims simultaneously and may not have the same level of specialization in homeowners insurance. Additionally, their loyalty to the insurance company may influence their approach to handling claims.
Contact Property Protectors to Work With Our Public Adjuster Today
The main differences between public adjusters and insurance adjusters lie in their allegiance, who they represent, how they are compensated, and their expertise and experience. While insurance adjusters work for the insurance company and prioritize its interests, public adjusters work exclusively for policyholders and advocate on their behalf to maximize their claim payout.
When filing a homeowners insurance claim, policyholders may choose to hire a public adjuster to ensure they receive fair and just compensation for their losses. By working with a public adjuster, policyholders can level the playing field and increase their chances of securing a favorable outcome in the claims process.
Contact Property Protectors today to work with our public adjuster.