Public Adjuster Claim Disputes

They serve different roles. A public adjuster documents and values your loss, while an attorney steps in when the carrier still won't pay that documented value and litigation or formal negotiation becomes necessary.

A proper valuation accounts for the true cost of repair or replacement, including materials, labor, and code-upgrade requirements, not just the carrier's initial estimate.

That disagreement often requires either a formal appraisal process under your policy or litigation to resolve. We step in at that point to pursue the documented value on your behalf.

Understanding both how a proper loss estimate is built and how litigation works gives us insight into where an insurer's adjuster is most likely to undervalue a claim, and how to challenge that valuation effectively.

A public adjuster is a mediator between a claimant (the person with damaged and insured property) and the insurance company. Public adjusters have the ability to negotiate on the claimant’s behalf. In essence, the adjuster does not worry about whether the insurer will pay. Rather, a claims adjuster worries about amounts. A claims adjuster values the damage on your property. Then, they negotiate the details with the insurance company.

Not all people claiming to be public adjusters are legitimate. Before agreeing to deal with a public adjuster, consider these warning signs: Money. Money is the end goal for false public adjusters. Beware of the public adjuster who wants the money in advance. Most public adjusters contract on a contingency basis. Likewise, they will not ask for money until after the insurance company cuts the check. Any demands for money in advance is a sign you should decline their offer. Previously unknown damage. An adjuster knocks on your door. They seem friendly enough, but they inform you that there is damage to your property. You were not aware of the damage. This is a red flag. Adjusters show up to homes in areas affected by storms. This is normal. What is not normal is a claim adjuster seeking to defend you for small claims. Insurance companies are more likely to pay out small insurance claims. An adjuster, therefore, is not necessary. Inducement of fraud. This goes without saying but be wary of an inducement to fraud. Any “spin” on your damage for the sake of increased money is fraud. They may even offer to cut you in on the extra profit. Do not go for this bait. Find another public adjuster. In the state of Pennsylvania, public adjusters MUST register with the state. If they cannot provide you with proof, check http://www.insurance.pa.gov/ under the heading “Online Resources.” The state lists registered adjusters here. If they are not on the sit, decline their services. Forgoing the contract. By Pennsylvania law, a public adjuster must sign a contract with the claimant. According to the Pennsylvania insurance department of public adjust contract must contain: “You have the right to rescind the contract within three (3) calendar days after signature. The public adjuster must disclose that their fee will come from a portion of the claims payments from your insurance company and will not be in addition to those payments.. The public adjuster is required to provide you with a copy of an estimate or report of losses and, upon your request, any supporting documentation sent to the insurance company on your behalf. The public adjuster is not a representative or employee of the insurance company. He or she is an independent licensee of the Insurance Department.” Public adjusters make these fraudulent claims to make money. Scammers attack the most vulnerable. Stressed out individuals are an easy target. Do not allow yourself to be further victimized. Seek legal counsel to remedy the financial pain left by a bad public adjuster.