Most people know very well what an Insurance Adjuster is. You probably had to deal with one at least once in your life. Whether it be because of a car wreck, flood damage, water damage, smoke damage, fire damage, hail damage, roof damage, etc. A lot of the time, your experience with an Insurance Adjuster is likely pleasant. The come and assess your damages, provide you with some sort of estimation of said damages, and your proceeds for repairs are then supplied. This is the ideal situation, which honestly, we hope is the exact situation you experienced.
So, what happens when the Insurance Adjuster or Insurance Carrier decides not to properly adjust your insurance claim? Or perhaps greatly prolongs the settlement payment, the adjustment process, or does not agree that your damage is related to the claim in general? Your policy and the rules and regulations set forth by your state and your state’s Department of Insurance allow for additional actions that you the policyholder may take.
One of your options in the claims process, is to have an adjuster represent you the property owner. This is not and cannot be an Insurance Adjuster. An Insurance Adjuster only represents the Insurance Carrier in the claims process. The adjuster that represents a property owner is licensed by the state as a Public Insurance Adjuster.
By Texas Department of Insurance’s Definition;
“Public insurance adjuster – An individual employed by a policyholder to negotiate a claim with the insurance company in exchange for a percentage of the claim settlement. Public insurance adjusters must be licensed by TDI.”
https://www.tdi.texas.gov/consumer/glossary.html#P
This adjuster is licensed, bonded, had a federal background check, and tested. The Public Insurance Adjuster is allowed to negotiate coverage, the scope of work, and other claim related issues on the Policy Holder’s behalf. This Public Insurance Adjuster is allowed to charge a percentage of the claim settlement, not to exceed 10% of the total claim settlement amount.
One misconception, at least in the state of Texas, is that contractors can negotiate on behalf of the property owner’s on their insurance claims. This is not the case as a contractor cannot negotiate with the Insurance Carrier or the Insurance Adjuster when it comes to policy and or items covered under said policy. Scope of work and an explanation of that scope can be provided to the Insurance Adjuster/Carrier by the contractor, but that is generally the extent of allowed communications.
If you would like to read more on the rules and regulations of Public Insurance Adjusting, here is a link to the state’s regulations.
https://statutes.capitol.texas.gov/Docs/IN/htm/IN.4102.htm#4102.001
We would be happy to answer any other questions in regards to Public Insurance Adjusting you may have! Thank you for your interest and taking the time to read this article.
