It is the duty of the public adjuster to act as the representative exclusively for the insured.
In comparison, it is the duty of independent/staff adjuster to act as the representative exclusively on behalf of the insurance company.
While all adjusters are required to be licensed, state laws regulate the public adjusters more stringently than independent/staff adjusters.
Public adjusters must be bonded.
State laws dictate that there must be a written contract between the public adjuster and the insured.
The contract must be approved by the Texas Department of Insurance and must contain certain language indicating that the client can rescind the contract within 72 hours of signature. Most public adjusting contracts are contingency based.
No payment is expected up front and the compensation can be a percentage of the total claim settlement. The compensation cannot exceed 10 percent of the amount of the insurance settlement on the claim per state laws.
When a catastrophe occurs, a claim is filed with the insurance company for the damage. In the case where a public adjuster has been contracted to act on behalf of the insured, all communications and correspondence goes through the public adjuster.
The public adjuster guides and assists the insured in gathering all the required documents and facts pertaining to the catastrophe and presents it to the insurance company.
The public adjuster also meets with the independent/staff adjuster on site and guides and assists the inspection of the damage to ensure all covered damage is documented for the insurance company file.
The guidelines and procedures listed in the policy and by state laws are for the protection of both the insured and the insurance company. The public adjuster maintains the strict compliance with the policy required “duties after a loss” placed on the insured. Once all required documents and facts have been presented to the insurance company, the public adjuster preserves the strict compliance required by the policy for the insurance company to pay the loss in a timely manner.
There are numerous cases that confirm the increase in settlement amounts in claims related to those where a public adjuster was involved from the beginning. The timetable to settle the claim was dramatically reduced.
The settlement process went smoother and the claim was paid properly. Insureds have repeatedly stated that sharing the burden to settle the claim reduced their stress level and that was..
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