A Consumer's Guide to Public Adjusters (North Carolina Department of Insurance)

A CONSUMER’S GUIDE TO PUBLIC ADJUSTERS WHAT IS A PUBLIC ADJUSTER? ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| When you file a property and casualty insurance claim (auto or homeowners, for example), the insurance company will probably assign an adjuster to review the claim and help determine the dollar amount of the loss. This adjuster works on behalf of the insurance company. However, there is another type of adjuster known as a public adjuster. A public adjuster is hired by and works for the person filing the claim to help with the filing, negotiation, and settlement of the claim. Public adjusters can be helpful with large, complicated claims in particular. The public adjuster charges a fee for his or her services, often a percentage of the final settlement amount. If you enter into a contract with a public adjuster, he or she becomes your representative in dealing with the insurance company. Therefore, you should provide your insurance company with the public adjuster’s name and contact information, and the public adjuster should notify the insurance company that he or she will be representing you. From that point forward, the insurance company should communicate directly with the public adjuster instead of with you. The insurance company has the right to request a copy of your contract with the public adjuster. A public adjuster can manage your entire claim process. This includes inspection of the loss site, preparing a list of all lost property, calculating a dollar value for your losses, reviewing your policy provisions, hiring contractors to make repairs, inspecting the repairs as they are performed, and handling claim paperwork required by the insurance company. BEFORE HIRING A PUBLIC ADJUSTER |||||||||||||||||||||||||||||||||||||||||||||||||||||||||| • Decide whether you can settle the claim on final insurance settlement is $50,000, then you your own. You might want to consider hiring a would owe the public adjuster $5,000. If the claim public adjuster (or a private attorney versed in is due to a catastrophic incident, the maximum fee handling insurance claims) if the claim is large or allowed under North Carolina General Statutes is complicated, or if you are unable to negotiate a 10 percent of the settlement amount. settlement with the insurance company. • Ask the public adjuster for references in your local • Make sure the public adjuster is licensed in North area. In addition to checking references, you can Carolina! Public adjusters must be licensed in order ask the North Carolina Department of Insurance to conduct business in North Carolina. Ask to see about his/her complaint history, and also check the public adjuster’s license, and write down his/ with your local Better Business Bureau. her full name and license number. You can check • Consider meeting with two or more public license status by calling the N.C. Department of adjusters before you decide which one to hire. Do Insurance at 855-408-1212. not allow a public adjuster to pressure you into • Find out the public adjuster’s permanent address. signing a contract if you are not ready to do so. Sometimes (especially after large-scale natural • Do not pay any money up-front, because the disasters), out-of-state public adjusters will travel amount you will pay him/her will be based on a to an affected area, where there may be many percentage of your total insurance settlment. consumers needing prompt assistance with their • Request information on how checks are issued by insurance claims. If you choose to use an out- the insurance company and make sure checks are of-state public adjuster, confirm that he/she is payable to you and the public adjuster. licensed by the North Carolina Department of • Ask the public adjuster how long it will take to Insurance. settle your claim. Obviously, larger and more • Make sure you understand the public adjuster’s fee. complicated claims can take longer than smaller Public adjusters’ fees are usually a percentage of claims. If you decide to hire a public adjuster, ask the insurance settlement. For example, if you sign a the adjuster to keep you updated on the status of contract that specifies a 10 percent fee, and if your your claim. • Carefully read any contract that you are given by • If your insurance company offers to pay the full the public adjuster and DO NOT SIGN until you amount of your policy limits within 72 hours understand and agree to the contract terms. Be after the date on which you reported your loss sure you understand: to the company, then the public adjuster cannot —— The total fee (or percentage) that you will owe. receive a commission based on a percentage of —— When your payment(s) to the public adjuster the total settlement amount. Instead, he/she may will be due. charge a reasonable fee based on his/her time and —— Whether you can cancel the contract, and if expenses. He/she must also notify you that the there would be a penalty for doing so. amount paid by your insurance company might • You have the right to rescind the contract after it not be increased. has been signed.