When disaster strikes, whether it’s a fire, storm, or flood, homeowners rely on their insurance policies to help them recover. However, dealing with insurance claims can be a complicated and overwhelming process. In these challenging times, understanding the role of public adjusters is crucial to getting the compensation you deserve.

While there are different types of adjusters in the insurance claims process, two of the most common are public adjusters and independent adjusters. Many homeowners are unaware of the key differences between these two, which can impact the outcome of their claims. In this blog post, we’ll compare public adjusters and independent adjusters and help homeowners in Pennsylvania, West Virginia, and Maryland understand which type of adjuster is best suited to represent their interests.

What is a Public Adjuster?

A public adjuster is a licensed professional who works exclusively for the policyholder, not the insurance company. Their role is to represent the interests of the homeowner, ensuring that they receive the maximum compensation allowed under their policy. Public adjusters are typically hired by policyholders to assist with filing claims, assessing damage, negotiating with the insurance company, and, if necessary, appealing claim denials.

Public adjusters are paid a fee based on a percentage of the settlement amount, and their job is to advocate on behalf of the homeowner, ensuring that they get a fair payout. As a result, public adjusters work for you, the homeowner, and their loyalty lies solely with your best interests.

What is an Independent Adjuster?

An independent adjuster is a third-party contractor who is hired by the insurance company to handle claims. Independent adjusters are not employed by the insurer but work on a case-by-case basis for multiple insurance companies. Their primary role is to assess damage, investigate claims, and make recommendations regarding the payout based on the policyholder’s coverage.

Although independent adjusters may seem similar to public adjusters, there is a significant difference: independent adjusters are hired by the insurance company, which means their ultimate loyalty lies with the insurer. This can lead to conflicts of interest, as the adjuster may be incentivized to minimize the claim settlement in order to protect the insurer’s bottom line.

Key Differences Between Public Adjusters and Independent Adjusters

1. Who They Represent

The most significant difference between a public adjuster and an independent adjuster is who they represent.

• Public adjusters represent the policyholder, ensuring that your interests are prioritized.
• Independent adjusters are hired by the insurance company, meaning they are working for the insurer and their ultimate goal is to protect the company’s financial interests.

As a homeowner, hiring a public adjuster is often the best choice, as they are specifically trained to look out for your best interests and maximize your claim.

2. Compensation

Another key difference lies in how the adjusters are compensated.

• Public adjusters typically work on a contingency basis, meaning they are paid a percentage of the final settlement. If you don’t win your claim or don’t get a satisfactory payout, they don’t get paid. This incentivizes public adjusters to work diligently to secure the maximum payout for you.
• Independent adjusters, on the other hand, are paid directly by the insurance company, typically as a flat fee or on a per-case basis. As a result, their compensation is not tied to the outcome of the claim.

The contingency-based payment structure of a public adjuster helps ensure that they are motivated to secure a fair and substantial settlement.

3. Level of Expertise and Advocacy

Public adjusters are experts in the insurance claims process. They understand policy language, coverage limits, exclusions, and how to properly document and present a claim. They also have extensive experience negotiating with insurance companies to ensure that you receive fair compensation.

• Public adjusters typically specialize in advocating for homeowners and businesses. They have the knowledge and expertise to handle even complex claims, such as those resulting from fire, water damage, or other natural disasters.
• Independent adjusters, while skilled in assessing damage, work for the insurance company and are less likely to be as aggressive in negotiating for the homeowner. They are trained to evaluate claims, but their priorities align with the insurance company’s goal of minimizing payouts.

By hiring a public adjuster in Pennsylvania, West Virginia, or Maryland, you can rest assured that you have an experienced advocate on your side who will fight for the compensation you deserve.

4. Claims Process

The claims process is another area where the two types of adjusters differ.

• Public adjusters manage the entire claims process for the homeowner, from filing the claim to negotiating with the insurance company and handling disputes. They ensure that all aspects of the claim are thoroughly investigated and documented, increasing the likelihood of a fair settlement.
• Independent adjusters, while experienced in damage assessment, usually only handle the initial evaluation and reporting of the claim. They may not provide ongoing support or assistance throughout the entire process, leaving the homeowner to navigate the complexities of claim negotiations.

A public adjuster will guide you through every step of the process, ensuring you don’t miss any important details that could impact the value of your claim.

5. Potential for Conflict of Interest

One of the major concerns with independent adjusters is the potential for a conflict of interest. Since independent adjusters are paid by the insurance company, their incentive is to minimize the payout in order to reduce the insurer’s costs.

• Public adjusters, on the other hand, are beholden only to the homeowner, ensuring that your best interests are the primary concern.

Why Homeowners Should Hire Public Adjusters

For homeowners in Pennsylvania, West Virginia, and Maryland, hiring a public adjuster can make a huge difference in the outcome of your insurance claim. Public adjusters are experienced professionals who are dedicated to fighting for the compensation you deserve. With their expertise in navigating the insurance claims process, public adjusters are more likely to secure a higher payout than if you handled the claim on your own or relied on an independent adjuster hired by the insurance company.

Conclusion

When it comes to managing insurance claims, especially after significant property damage, homeowners need an advocate who will prioritize their interests. Public adjusters are dedicated professionals who work for you, ensuring that your claim is handled properly and that you receive the maximum payout possible. Independent adjusters, while skilled, represent the insurance company and may not always act in your best interest.

At A H Neaman Company, we are licensed public adjusters in Pennsylvania, West Virginia, and Maryland. We specialize in helping homeowners navigate the insurance claims process and maximize their settlements. If you need help with an insurance claim, contact us today, and let us put our expertise to work for you!