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Why Using a Public Adjuster Might Cause More Harm Than Good

After a vehicle accident or damage to your home occurs, it can be difficult to decide whether to reach out to your insurance company or a public adjuster. Information online about what to do can be confusing. First, it’s essential to understand what a public adjuster does. It is a person who works on behalf of policyholders to advocate for them. Some people hire public adjusters to help them through the claims process, making sure a fair resolution is reached.

Benefits You May Not Know About

A public adjuster can be a wise choice in some cases, however, it’s crucial to understand the benefits of reaching out to your insurance company.

Policy familiarity – Your insurance company will be familiar with your policies and their coverage parameters. Working with your insurance company can ensure your claims are processed and that you receive what is promised in your policy.

Time – You can save time by working with your insurance company. Oftentimes, insurance companies have to handle many claims that may be similar. They can quickly enter information into their systems and provide settlements.

Communication – A claims adjuster will be assigned to you from your insurance company. Having a single point of contact helps you to receive regular updates. This person can also answer any questions or concerns that you have about the claims process.

Service providers – Insurance companies have relationships with many contractors or service providers. When you receive a recommendation from your insurance company, it can help speed up the process for repairs or replacements.

Payment – If the claim is not out of the ordinary, you can receive payment directly from your insurance company without having to deal with anyone acting as a middleman.

Potential Drawbacks With Public Adjusters

Using a public adjuster can come with negative consequences for the insured. Here are some reasons why there might be better choices than a public adjuster for you.

More Money 

Working with a public adjuster will come with specific fees. Generally, they will ask for a percentage of the final settlement. In some cases these fees can be excessive, reducing the amount of settlement that you will see as the insured party.

Disappointing Delays

Public adjusters can come with extra steps and unnecessary hoops to jump through. Remember, the public adjuster is acting as an advocate/middleman for the insured party. It may seem like a good idea, but it can lead to delays in the settlement. Working with a public adjuster doesn’t necessarily mean the claims process will be expedited, it may be slowed down.

Exaggerated Claims

Some public adjusters have an objective to maximize the claim settlement. When you do this, you run the risk of overvaluing damages or losses. When insurance companies find out about this it can lead to disputes which can have an impact on the claim’s overall outcome. Extreme cases may lead to concerns about fraudulent activity.

Strained Relationships

You could cause an unwanted contentious relationship with your insurance company by using a public adjuster. Forming a difficult relationship with your insurance company can make negotiations difficult and ultimately strain the relationship between the company and the insured party. It’s not exactly an ideal situation for long-term policyholders.

What You Should Do

Whether you decide to choose a public adjuster or go through your insurance company, make sure to assess the amount of property damage, the settlement you may receive from the insurance company, and whether you believe you need additional help. Each situation will be different. Weigh the pros and cons and select the best choice for your specific situation.

Tailored Insurance Solutions for You

Filing a claim does not have to be a stressful or difficult situation, especially if you are working with COBIA Insurance Agency. We can help make the claims process easier and increase your chances of getting the best possible outcome.

COBIA Insurance Agency has several insurance options including home insurance, auto insurance, commercial insurance, flood insurance, and umbrella insurance. Our comprehensive insurance options will ensure you receive the best protection. We are committed to delivering personalized and tailored insurance solutions for each client. 

It’s simple to get started. You can contact one of our team members by clicking here. We are eagerly awaiting to work with you!

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