Things to Know Before Dealing With a Homeowners Insurance Claims Adjuster

As a result of the approaching hurricane season, many homeowners may soon be forced to repair storm damage. This indicates that they will likely interact with their homeowner's insurance company and, more specifically, a claims adjuster. Here is what you need to know about the procedure.

Residence Impacted By Storm Damage - Here Are Some Facts Regarding Claims Adjusters

Professionally-trained claims adjusters will visit your home or property to assess the damage for the insurance company.

First, it is important to note that there are two types of claims adjusters: In a significant accident or natural disaster, it is usual for independent public adjusters to approach you. The second type of adjuster is commonly known as a staff adjuster. The insurance business employs them. (It is usual for insurance firms to also employ independent adjusters, but we will refer to them as staff adjusters for this article.)

The advantage of public adjusters, if you can call them that, is that they typically do not represent the insurance company's interests. In contrast to an insurance company-employed claims adjuster, they are not free.

Therefore, you should conduct research before hiring a public claims adjuster. If you opt to hire a public adjuster, be cautious to check their credentials and references. The Better Business Bureau, your state's insurance department, and the National Association of Independent Insurance Adjusters are useful tools for screening insurance adjusters.

How much does a public claims adjuster charge as a percentage?

The fees charged by public claims adjusters differ from state to state. Typically, their fees range between 10 and 20 percent of your settlement. An adjuster may charge as much as 20 percent for a $25,000 loss but as little as 10 percent for a loss above $100,000.

If you go with the insurance company's staff claims adjuster, it is pretty typical to dispute their results, so don't lose sleep over it.

Some insurance companies may send you a proof of loss form to complete before the adjuster visits. Do not misplace this form! You must itemize your losses.

Many individuals are so traumatized in the aftermath of a natural disaster that they completely ignore the claims adjuster. However, you must be as involved as possible. Your total financial and emotional healing is contingent upon it.

Here are the duties of a home insurance claims adjuster:

The claims adjuster will search for structural damage to your primary property, but you may need to bring secondary losses to his or her notice, such as damage to a shed or carport. Nothing should be discarded until the claims adjuster has recorded it.

Typically, the claims adjuster will utilize a program like Xactimate to calculate the amount of damage.

Always inquire about the origin of the insurance adjuster. An insurance professional advised Insure.com: "The insurance company would likely hire out-of-state adjusters who are not licensed in your state," Ron Reitz, president of Quality Claims Management Corp. in San Diego, told the website. He continued, "They are less conversant with local building codes. Wildfires in Southern California demonstrated that out-of-state adjusters could not realize that it would cost $800,000 to $1,000,000 to reconstruct a home. If they are accustomed to handling entire losses of $200,000, they cannot appreciate local building values.

Collect Your Receipts

In addition to insurance documentation, maintain all documents about your home's contents and any renovations. Almost certainly, you will need to send these to your insurer.

Write Down Everything

Independent of the claims adjuster's actions, and preferably before they arrive at your property, properly document any damages you observe. Check your air conditioner, heater, and any other inactive appliances. While many insurers may allow you to generate a list of goods you remember, it is preferable to photograph or videotape your belongings.

Itemizing your goods would offer you a solid picture of what's in your home, but it will also provide you with a significant advantage when it comes to obtaining insurance.

Here is an example of what you should record:

• Explanation of the item
• Date of acquisition
• Evaluation of repair or replacement costs

What To Do If An Agreement Cannot Be Reached

If you've done everything the insurance company has requested, you may be startled when they return a significantly cheaper estimate. In many circumstances, this is because insurers claim they are providing you with the home's market worth rather than considering its condition before the tragedy.

Have courage! Suppose you and the insurance company cannot reach an agreement. In that case, you can initiate escalation by going beyond your insurance agent and requesting to talk with or meet the claims department manager of the company.

Check if your policy permits an independent appraisal after a loss; if that does not work. It likely does, and this is a positive development. Inform your insurance provider that you intend to hire an independent appraiser. Your policy's conditions say that they will do the same. This results in a neutral third party making a binding decision about your claim. Although there is a danger, it won't work out in your favor. If you believe the insurance company's proposed settlement undervalues you, it's worth pursuing.

There are numerous trustworthy insurance mediation firms available, but you should always do your research.