Do you need your own claims adjuster?

Needing to file an insurance claim is stressful — and navigating the claim process can cause that stress to multiply. While insurance companies have developed rigorous claims practices to help make policyholders whole after a loss, those processes can be opaque and confusing to anyone without industry knowledge. Some policyholders choose to work with an independent adjuster who works on their behalf to help ensure that the claim is justly evaluated and leads to a fair payout. However, hiring a claims adjuster may not be the right choice for everyone. 

What is a claims adjuster?

An insurance adjuster investigates home and car insurance claims and decides if the company needs to pay the loss. Adjusters are generally employed by your insurance provider. When you file a claim, an adjuster is assigned to the claim to find out the extent of the damage and exactly how much your insurer should pay, if anything, based on your coverage types.

Claims adjusters can be divided into three categories:

• Staff adjusters: These adjusters are employees of a specific insurance company.
• Independent adjusters: These adjusters are often hired by insurance companies during times of high claim volume, like after a catastrophic storm.
• Public adjusters: These adjusters are not employed by an insurance carrier and work exclusively on behalf of the policyholder, typically on home insurance claims.

While insurance companies try to settle all claims in a fair manner, there may be times when you disagree with the settlement you receive or your claim is complicated enough to warrant outside assistance. These may be cases when a public claims adjuster could be useful.

Should you hire a public claims adjuster?

Most car insurance claims will be settled by staff adjusters, the claims representatives who are employed by your insurance company. If a large influx of claims has happened at once — after a hurricane, for example — your claim might be handled by an independent adjuster who is still working on behalf of your insurance company but isn’t an employee.

If your claim is particularly large or complicated, if you do not agree with the settlement reached by your insurance adjuster or if you need assistance with managing the claims process, a public claims adjuster may be able to help. While public adjusters typically focus on home insurance claims, you may have the option to work with one on an auto claim. 

The vast majority of claims are handled sufficiently by staff and independent adjusters. If you do feel the need to hire a public adjuster, you may want to reach out to your state’s department of insurance for questions and recommendations before pursuing a public adjuster.

Pros of hiring a public claims adjuster

The primary advantage of hiring a public claims adjuster to work on your insurance claim is that you’re able to pass a lot of the work on to a licensed professional. This comes with certain advantages, such as: 

• Potentially larger payout: Because a public adjuster works for you — not the insurance company — they’ll work with your best interest in mind and could help to maximize the payout you’re eligible for.
• Save on time and errors: If you’re unsure of what you’re doing while filing an insurance claim, a public adjuster can take some of the labor off your hands and avoid errors you might make due to inexperience.
• Ongoing relationships: If you’ve worked with a public adjuster in the past, you may be able to call on them in the event of a subsequent loss and minimize the stress of filing a claim. 

Cons of hiring a public claims adjuster

While there may be advantages to working with a public claims adjuster, it’s worth considering the downsides: 

• Many public adjusters won’t work on car insurance claims: Most public insurance adjusters focus on home insurance claims, and some may not take on clients with auto insurance claims.
• Public adjusters will charge a fee: Adjusters typically charge a percentage of your claim payout in exchange for their services, and the amount could be significant — as high as 30 percent in some cases.
• You’ll give up control: By authorizing a public adjuster to handle the claim on your behalf, you may give up a lot of control over the outcome of the claim, particularly if your adjuster doesn’t stay in close contact with you.  

How much does a public insurance adjuster cost?

If you decide to hire a public adjuster, you will have to pay a fee. There are no fixed fees for public insurance adjusters; prices vary from one professional to another. You may occasionally pay a flat fee to a public claims adjuster, or the fee may be a percentage of the final claim settlement. While the percentage of your payout that goes to the public adjuster can vary, it’s often 10 percent or more. 

How to choose a public adjuster

Because public adjusters work on your behalf, it’ll be up to you to choose who to work with; your insurance company is not likely to have recommendations for public adjusters. You may want to consider the following steps when hiring a public adjuster.

Ask for recommendations

Friends, family, co-workers and acquaintances could be polled for recommendations and advice if they’ve used a public adjuster before. If none of them have ever used a public adjuster, you could ask them if they know someone who has.

Contact the NAPIA

The National Association of Public Insurance Adjusters (NAPIA) is an organization that has a database of professional claim adjusters with at least two years of experience. You can sort through a list of reputable adjusters and even filter the list by different experience levels. This organization also offers certifications for public adjusters that are highly regarded in the industry.

Contact the state insurance office

Some states regulate or license public insurance adjusters. If your state does, you may be able to find information on reputable public adjusters through the state’s department of insurance.

Shortlist candidates

Once you have narrowed down a few names, you might want to put them through a screening process. You could contact their references and past clients and ask if the person was timely, effective and credible. Also, you may want to make sure to verify their credentials by calling their accrediting body.

Alternatives to hiring a public claims adjuster

Policyholders usually hire their own claims adjuster when the proposed settlement seems unfair to them or when their claim is quite complicated. However, there may be other ways to resolve the issue without getting a public adjuster.

Work with your insurance agent

If you are not satisfied with the claims adjuster provided by your insurance company, you might consider talking to your agent or a customer service representative. Your agent may be able to talk with the claims team and figure out a way to help resolve your issue. You can also request to talk to your adjuster’s manager or have your case evaluated by another staff adjuster.

Appeal to your insurer

If your issue is not resolved by working with your carrier, you can appeal the claim decision. The process may differ from one company to another, but it may help to resolve claims issues without seeking outside help.

Consult an ombudsman

If your state’s department of insurance has an on-staff ombudsman or mediator, they may be of help to you. The role of an insurance ombudsman is to investigate complaints regarding claims, coverage, payments and other facets of insurance.

Contact your state insurance regulator

If all else fails, you can file a complaint with your state’s department of insurance. Just keep in mind that the process may be long, and your issue may not be resolved to your satisfaction if no insurance laws were broken.

Frequently asked questions

• Can a public claims adjuster reopen an old insurance claim?

• Do public adjusters only handle auto insurance claims?

• Does hiring a public adjuster affect my premium?

• How long does it take to settle an insurance claim?

• Should I get my own loss adjuster?