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Insurance settlements are how most of a contractor's clients pay for repairs, so how a claim is handled matters to everyone involved in the job.
Insurance companies aren't required to negotiate coverage with contractors, and contractors generally aren't allowed to negotiate it on the homeowner's behalf. This leads many contractors to try, and fail, to get in contact with insurance carriers to clarify or dispute an aspect of their clients' coverage. Contractors can generally provide estimates, repairs, and factual opinions about damage and costs.
Many states also prohibit contractors from acting as public adjusters, or advertising to adjust claims, on properties where they're doing or may do the repair work. In some states, this applies even if the contractor holds a public adjuster license. Violations can lead to fines, license discipline, and in some states criminal penalties.
So what options do your clients have when there's a dispute over the scope or value of their claim? Many general contractors and roofers have found a solution by getting to know a trusted local Public Adjuster.
When a client's claim is disputed, the repairs can stall. And since negotiating on your clients' behalf can put your business at legal risk, it helps to know someone who is licensed to do it.
By having a trusted Public Adjuster on speed dial, contractors can point clients who are struggling with insurance carriers toward someone who can represent them and pursue the full amount they're owed under the policy, which helps them move forward with repairs.
A Public Adjuster is a licensed insurance professional authorized to negotiate with insurance companies and pursue fair coverage under the insured’s policy. Unlike contractors, Public Adjusters can negotiate disputed claims and settlements with insurance carriers.
Public adjusters are licensed by the state to represent policyholders, and they focus only on the property owner's interests.
A Public Adjuster works for and is hired by your client, the insured policyholder, not the insurance company. Their job is to handle the claims process and work toward a fair settlement under the client's policy. They handle the claim paperwork and administrative work throughout the process to move the claim toward a settlement, and may also follow up on supplemental claims to pursue recoverable depreciation owed to the policyholder.
Public Adjusters often work on a contingency-fee basis and are typically paid a percentage of the insurance settlement on the claim. Many states regulate public adjuster fees, and some cap them. Fee rules vary by state. The policyholder decides whether to hire a Public Adjuster.
Claims can benefit significantly from Public Adjuster representation. Many states have prompt-payment laws that set deadlines for carriers to acknowledge, evaluate, and pay claims, and a Public Adjuster knows how to document a claim thoroughly and help keep the claim moving within those deadlines.
Public Adjusters also bring an expert understanding of policy language and carrier practices, and they present the claim with thorough documentation tied to the policy's terms.
Because contractors and Public Adjusters often serve the same homeowners, many get to know each other professionally. These relationships never involve referral fees, kickbacks, or any other payment or benefit in exchange for referrals. In many states, a Public Adjuster can't have a financial interest in, or receive any benefit from, a repair or construction company working on a claim the Public Adjuster is handling.
A homeowner may ask a Public Adjuster for names of local contractors, or ask a contractor what to do when a settlement doesn't cover the cost of repairs. In either case, the homeowner makes their own choice about who to hire.
Tiger Adjusters has licensed Public Adjusters in many states who help insured policyholders navigate the property damage claim process. With the homeowner's permission, our Public Adjusters can communicate with the homeowner's chosen contractor about the scope of damage and repair estimates. Contact your local Tiger Adjusters office to learn more.
