What is a public adjuster? Why hire a public adjuster?
Don’t let insurance companies take advantage of you at your time of loss, maximize your settlement, regain control and find peace of mind with our public adjusting firm. Engage a public adjuster.
If you find the home insurance claims process overwhelming or suspect unfair treatment, a public insurance adjuster will work on your behalf to represent you and give you peace of mind. Public adjusters have the expertise to navigate the complexities of the claims process and negotiate with the insurance company to make sure that you receive the settlement you deserve in the minimum amount of time.
Why you need a public adjusting firm - when the insurance industry changed forever.
For years we diligently pay our insurance premiums, hoping and believing that the insurance company will protect us in our time of need. Unfortunately, this is not the case anymore.
Imagine a scenario where you face a devastating loss, and suddenly after this catastrophic event, your life has been upended; you’re facing the financial burden, covering unforeseen expenses and waiting for your insurance company to set things right.
Months drag on, the stress mounts, and finally, you receive an offer from your homeowners insurance company which is well short of what is needed to make you whole. All you can do is ask yourself what now?
In the 1980’s the insurance industry changed forever.
Allstate, driven by corporate greed and its pursuit of enhanced profitability, collaborated with McKinsey and Company, who realized that they could significantly enhance Allstate's profits simply by not paying claims.
In the first year, following implementation of the strategy, DENY, DELAY, DON’T PAY, Allstate profits grew immediately from $80 million to over $1 billion.
Here is the overview of the strategy. The McKinsey strategy of don’t pay and keep the proceeds, was soon adopted by the entire industry and became the standard for what we see today.
1. Deny claims.
The rationale was a significant portion of policy owners, when faced with an initial denial, would not pursue the matter further thereby saving Allstate from paying settlements.
2. Delay paying. The claim processing time was stretched out, and desperate policy owners would generally accept settlements out of frustration or desperation.
3. Don’t pay. Offers were far lower than what was generally owed, and this tactic relied on the premise that many policy owners would not have the resources or tenacity to challenge the undervalued settlements.
Tactics insurance companies use to deny and devalue claims
Insurance companies further refined their tactics to protect their financial interest at the expense of their policy owners. These include:
Lowballing initial offers with low settlement offers to prey on policy owners' lack of knowledge and desperation.
Delay tactics to wear down claimants.
Unfounded claim denials.
Obscure policy language to create confusion.
Unreasonable repair estimates that are unrealistically low while knowing that the actual cost will be much higher.
Use of in-house and biased adjusters to assess damage and cause of loss, thereby omitting many issues.
Misrepresentation of policies and misleading homeowners about their coverages.
Requiring excessive documentation requests to confuse and complicate the process.
Unjustifiable policy cancellations after claims have been filed.
What is a public adjuster?
A public claims adjuster fights with the insurance company to protect your rights. Public adjusters specialize in helping policy owners navigate the complex and frustrating process of managing their insurance claims. We work independently on your behalf, ensuring that your interests are protected and that you receive the maximum compensation possible in the minimum amount of time.
Who do we help?
We only work for policy owners of home and commercial properties in Ontario who have suffered a loss, whatever the cause, fire, flood storm or otherwise, for both large and small claims. We get your claim properly positioned for a quick and fair settlement.
How can we help you?
Suffering from a catastrophic loss can be emotionally and financially overwhelming, and a public adjuster can help take the burden of dealing with the insurance company off the policy owner’s shoulders. Whether it’s the loss of commercial or personal property, our goal is to make sure policy owners receive the maximum claim payout they are entitled to and make the process as free and easy as possible.
Who should hire us?
If you are you feeling fed up, uncertain, frustrated and neglected, anyone with an insurance claim who wants to maximize their settlement, minimize the stress and get a quick resolution needs the help of a public insurance claims adjuster. There was a lot of complexity in each case. And let’s face it, the insurance company adjuster is only going to represent the insurance company’s best interests; not the policy owners.
When is the best time to hire a public adjuster?
Clients either hire the public adjuster at the beginning of the claims process when filing a claim, thereby saving time and getting the file on the right track toward settlement as quickly as possible, or clients hire public adjusters once they’ve been dealing with the insurance company for months and haven’t received fair and prompt treatment or communication and are feeling neglected, lost and abandoned.
How do we determine the settlement value of your loss?
We review and examine your insurance policy. We work with structural, environmental and estimating experts to help build out the scope of your actual property loss. Our estimates always represent your interests. Insurance company adjusters work for the insurance company and represent their interests, adjusting the claim on that basis. Our estimates are generally multiples of the amounts the insurance company adjusters put forward.
How much does it cost to hire a public adjuster?
The real question to ask is, what is the cost of not hiring a public adjuster? Public adjusters charge a small percentage of the total amount of settlement and generally offer free consultations to help determine if their services are right for you.
In an actual illustration, a client with windstorm damage was offered $27,000 settlement from the insurance company. Frustrated and angry, they engage a public adjuster. We prepare the case, negotiate with the insurer and settle the damages in the final settlement amount of $290,000.
The homeowner is thrilled with the incremental amount of $263,000 in compensation and pays out 10% of the increased proceeds to the adjuster for their services. The net benefit to the homeowner is a lift in proceeds of $236,700 or 8.7x the initial insurance company offer.
What do public adjusters do to force the settlement when the insurer refuses to deal?
To force a settlement, public insurance claims adjusters can invoke a statutory right in the insurance act law called appraisal. This is a 3rd party arbitration process that allows for quick and fair settlement overseen by an independent arbitrator. Insurance companies generally wish to avoid the appraisal process which is binding, so they have an incentive to settle beforehand. This is a great last resort to force a claim to settlement.
What is the difference between a public adjuster and an insurance company adjuster?
Insurance company adjusters work for and only represent the insurer. Sometimes insurers hire third-party independent adjusters. Independent adjusters are not really independent, as they also only work for the insurer. The names and the terminology are confusing. Only the public adjuster is licensed to act on your behalf.
What specifically does a Public Adjuster do on your behalf?
Here is what we will do on your behalf and the duties we perform as a public adjuster:
1. Policy Analysis
We will analyze and review all the aspects of your insurance policy to identify your policy limits and identify any potential areas for review and interpretation.
2. Loss Identification
We will visit the site of your loss and determine if emergency measures must be taken in the short term to limit further damage
3. Negotiations
We will meet with your insurance company adjusters to review interpretations and work with them to secure advance payments for you, such as additional living expenses
4. Estimations – Contents
We will meet with content experts to determine the scope of loss and catalogue all the items.
5. Estimations – Building
We will work with our in-house estimators to develop estimates for the repair and restoration of the building according to current building codes and bylaws.
6. Documentation
We will prepare and file all forms regarding proof of loss as per the policy, along with all supporting documentation.
7. Communication
We will communicate with you with regard to all submissions to the insurance company and keep you informed via our online customer portal.
8. Appraisal Settlement
We will represent you in the appraisal process to reach a mediated solution.
We will explain every step of the process to you in clear language and make sure you understand the process.
What can the policy owner do to best safeguard their interests?
Understand your policy:
Invest time to understand your coverage
Familiarize yourself with insurance coverage limits, exclusions and conditions that may impact your claim
Equip yourself with knowledge regarding your rights and entitlements.
Documentation:
Meticulously document everything when it comes to building your case.
Make sure you have photographs and videos of affected areas in a comprehensive record of all interactions with the insurance company and claims adjuster personnel, as well as supporting documentation around repair estimates.
Engage a professional to handle your claim:
Give yourself the ability to recapture your life by having a licensed public adjuster on your side to represent your interests and deal with the insurer to maximize your claim settlement in the minimum amount of time. This will reduce your stress and give you the ability to focus on getting your life in order.
How can you go about finding a public adjuster?
If you are reading this, you are in the right place. XALT Claims Management would be happy to help you with a Free Consultation.