When an accident takes place involving damage to your property, it’s important to know whether you’ll hav to pay out of pocket to gave them fixed or if you have any other recourse available to you. That’s why it’s important to know the differences between a public adjuster and a contractor so that you’re aware of who is responsible at the end of the day.
What Is A Public Adjuster?
When weighing the pros and cons of public adjuster vs contractor, then it helps to know what they are first. A public adjuster is someone who evaluates your property damage and determine what a fair payout amount would be. This amount is dependent on what your insurance policy coverage is. A public adjuster is separate from the claims adjuster of the insurance company; a public adjuster will assess the damage, determine the scope of the repairs, and estimate what the replacement costs will be, but they work for you instead of your insurance company. Then once the claim has been settled, the public adjuster will receive a percentage of the payout as their payment.
What Is A Contractor?
A contractor is the party who is licensed to make the necessary repairs on your property. You can choose a contractor who is recommended by your insurance company or you can hire an independent contractor on your own. Either way, the contractor works for you and not the insurance company. Any contractor you hire should be licensed according to the laws within your state.
Can A Public Adjuster Work As A Contractor?
The short answer is no. Whether it is a claims adjuster or a public adjuster, they cannot fulfill the role of a contractor who is doing the repairs on your property. Not only is this a conflict of interest, but it may also not be permitted by the laws of your state.
In the same light, contractors cannot play the role of public adjusters. Although they can perform repairs to your property, they cannot file, manage, or help you settle any claims on your behalf. Doing so would constitute the unauthorized practice of public adjusting.
When Is The Best Time To Hire A Public Adjuster?
Hiring a public adjuster should be considered if you don’t want to handle the claims process directly. They will work on your behalf, and look closely at your claim to ensure that no damage is overlooked. In fact, you might even get a larger settlement to repair the damage with their expertise on your side. You may want to hire a public adjuster if:
- if you feel the claim settlement is too low
- if working with insurance companies is too stressful for you
- you’ve had poor claims experiences in the past
- if the damage is severe or the claim is large
Looking for a public adjuster doesn’t have to be an exercise in futility. Doing so is relatively easy, especially through the National Association of Public Insurance Adjusters website. Or you can conduct a search of the local adjusters in your area to find a licensed public adjuster who is right for you.
