Adjusters on call

Public claims adjuster can level the playing field for you

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:45:00 -0500

By Insure.com

Say your house has just been badly damaged by an earthquake, fire, or other calamity. You can't remember the last time you looked at your home insurance policy. Do you know what you're entitled to? Unfortunately, most people don't know the details of their policies because they are chock full of legalese. However, in the case of home or property damage (not auto-related), consumers can turn to public claims adjusters to decipher their policies and get them a fair settlement with their insurance company. Public adjusters work for both individuals and businesses, but most cater to the individual policyholder.

You don't need to hire an adjuster for minor damage, such as some smoke damage from a stove-top fire. However, you should hire an adjuster if your lifestyle is significantly disrupted. That is, bring in a public adjuster when you can't handle finding new living arrangements, filing a large claim, and arranging for a survey of extensive damage to your property.
Public adjusters must follow the guidelines written in their state that say what they can and can't do. Adjusters aren't allowed to handle bodily injury claims, auto claims, or third-party claims (such as a trust or an estate). They also are obligated to give you timely service (states usually require a settlement within 10 to 15 days after liability has been established), make sure you're given a reasonable offer from the insurance company, and disclose every part of the claims process to you.

Advantages of using a public adjuster
Public claims adjusters know the insurance process inside and out, so they can minimize the hassle that comes with collecting documents and evidence, and then negotiating with the insurance company. The adjuster will file all your pertinent paperwork with the insurance company, arrange for the inspections of your damaged property if needed, and then haggle with the insurance company if it refuses to pay your full claim. A good adjuster will also help control what you say to your insurance company. The adjuster will be forthright with your insurer, but won't divulge any information that might damage your case. Remember, the adjuster is your employee and will pursue your interests only.

Pay up
If you do decide to have a public claims adjuster help you out with your claim, expect them to take between 5 and 50 percent of your claim settlement. As the settlement amount goes up, the adjuster's cut generally goes down. For example, if you settle for $5,000, the adjuster might take 30 percent of that.

Experience is a prerequisite
Adjusters must be licensed in most states. Certification comes from passing an exam and taking certification-update classes. The industry also tries to police itself, keeping an eye out for uncertified adjusters who might ruin the industry's reputation.

Do I need an adjuster's help?
Depending on who you talk to, you may or may not need a public adjuster. One piece of advice is to seek a public adjuster's service right away. Often it's nearly impossible for consumers to know what to expect from an insurer in a homeowners claim situation, even after they read their policies. In addition, it's difficult for an adjuster to come in when a claim is in the middle of being processed. Insurers contend that their claims staffs are professionals who make the claims process as easy for their policyholders as possible, and they assert that it's questionable whether a policyholder comes out ahead in a settlement when the adjuster's fee is figured in.

Last Updated Jun. 26, 2002

http://www.insure.com/articles/homeinsurance/public-adjuster.html

Public Claims Adjusters Offer a Valuable Service

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:44:00 -0500

By Terri Cullen
From The Wall Street Journal Online

Dec. 17, 2002 -- Ah, the holidays. Fresh-cut trees adorned with festive ribbons and ornaments, the sweet smell of cinnamon and nutmeg from scented candles waft through the house, a crackling fire warms the room while hundreds of twinkling bulbs light up the neighborhood outside. And not a fire extinguisher in sight.

'Tis the season for homeowners insurance claims. Combine a dried-out tree and aging decorations with the crackling spark of flames or electricity, and many homeowners get themselves one nightmarish holiday display. Fire (along with the water to put the flames out) is the cause of one out of every 25 homeowners property claims, with the heaviest losses coming during the holiday season, according to Marlene Ibsen, spokeswoman for insurer Travelers Property Casualty Corp. in Hartford, Conn.

In the wake of a disaster, homeowners' natural response is to grab their policy and call their insurance agent pronto. But spend a few moments perusing consumer Web sites like Allstateinsurancesucks.com and StateFarmSucks.com (are you noticing a trend here?) and you'll quickly see that plenty of homeowners who have gone that route have lived to regret it.
The reason? Most homeowners, it turns out, have only a vague idea of what their homeowners insurance actually covers. Once a claim is filed, the insurance company will send over an independent adjuster to evaluate the claim. But these independent adjusters aren't so independent. Their job is to represent the insurance company's interests first, and yours second. After all, the insurance company is paying the independent adjuster. Paul Cohen, founder of New York-based consumer advocacy Web site Fight Bad-Faith Insurance Companies, says insurance companies pay close attention to their bottom line. Thus, when a customer files a claim it's not uncommon for independent adjuster to tell the homeowner that certain claims aren't valid due to certain clauses or omissions in their insurance coverage. And homeowners, already distraught due to the disaster, don't have the desire to argue with the insurance company representatives' estimate of their loss.

So when disaster strikes, it may very well be worth hiring a professional public adjuster as your advocate in an insurance claim. These adjusters specialize in combing over your damaged property and your homeowners policy, and they make sure the insurer doesn't snake away from a valid claim. Public adjusters many times are veteran insurance company claims adjusters who know how insurance companies operate and have expertise in negotiating property claims to make sure you get the most out of your policy.
"Generally a good insurance company will honor its commitments, but what we've found is there are a whole lot of not-so-good insurance companies out there," Mr. Cohen says. "If you have any sort of significant homeowner property claim, we recommend that you not file a claim without having a public adjuster to represent your interests."

Even when an insurance company is working hard to make you whole following a disaster, insurers often take the easiest -- and least expensive -- route, and ultimately the homeowner is short-changed. For example, in homes with catastrophic fire damage, insurers often will recommend bringing in professional cleaning services to clean furniture, clothes, rugs and the like, rather than pay replacement costs, says Wes Baldwin, acting president of National Association of Public Adjusters in Potomac Falls, Va.

"Then after all the said is done the house still smells smoky, but the insurance company will argue it's made a good faith effort to address the problem," he says. By hiring your own claims adjuster, you'll have a more objective opinion of what property can and can't be salvaged, he says.
But be warned, public adjusters aren't all licensed professionals. In times of tragedy or widespread storm damage, con artists claiming to be public adjusters often canvass neighborhoods hoping to convince homeowners to allow them to "manage" their insurance claims -- only to abscond with the insurance money once the claim is made.
Indeed, just a week after the Sept. 11 attacks that devastated real estate in lower Manhattan last year, Gregory V. Serio, the superintendent of the New York State Insurance Department, warned consumers to be wary of public adjusters who were out in force looking to exploit the tragedy.

So who can you trust? Well, let's state the obvious: If someone claiming to be a public adjuster comes knocking on your door soon after your home has suffered damage, take a pass. Expert adjusters don't go begging for business door-to-door. As with hiring any professional to oversee your finances, it's crucial to do your homework and find out all you can about the individual before signing any contracts.

The Web site of the National Association of Public Adjusters offers a search engine to help you locate certified professionals in your area by state or by company name. But the organization currently is comprised of a little over 100 member companies, and there are thousands of registered public adjusters nationwide, so it's best to check with your state insurance commissioners office for a complete list of licensed public adjusters in your area. You can find contact information by state at the Web site of the Insurance Information Institute, an industry trade group based in New York. Word-of-mouth also is a good way to find local public adjusters, so ask your accountant or lawyer if they can recommend a good one.

Once you've contacted a licensed public adjuster in your area, ask to see a copy of the adjuster's credentials to ensure they're current and demand a list of up to five references with contact information of former clients who have suffered property damage that is similar to your own.

Now that you've ascertained that the adjuster is on the up and up, make sure you know exactly what type of services he or she will be handling. Expect the public adjuster to provide a written assessment of the property damage and a ballpark estimate of the size of the total claim. Adjusters also typically handle all the paperwork involved in filing the claim, and, perhaps most importantly, will negotiate with your insurer if the company disputes the claim.
Once you've settled on a good adjuster, it's time to negotiate the fee. Typically, a licensed adjuster will charge a percentage of the total claim. The NAPA's Mr. Baldwin says 10% to 12.5% of the total claim is customary, but "the percentage tends to go down as the size of the claim increases." Be sure to negotiate, and never have an adjuster start any work on your behalf before the fee is agreed upon and a contract is signed. (Remember, we're talking public adjusters here -- the independent adjuster sent by your insurance company to evaluate your claim gets paid by the insurance company.)

As a final protection, ensure that the contract specifies that you have several business days to back out of the contract if you have any second thoughts. Be aware, as well, that a number of states, including Missouri and Louisiana, don't license public adjusters at all. In this case, it's imperative that you check a public adjuster's references thoroughly. Take all the precautions I've outlined above, and take the additional step of checking out the Better Business Bureau's Web site to see if any complaints have been filed against the adjuster. It's probably not worth the bother to hire a public adjuster to handle your claim unless the amount of damage is significant, or unless the damage to your property has caused a major disruption in your life, Mr. Cohen says. "The amount keeps dropping, but typically you'll find that it's worth it to hire a public adjuster when your claim is likely to be more than $15,000," he says.

But even if your claim is potentially insignificant, the honest opinion of a public adjuster can be invaluable even if he or she finds that your insurer probably won't cover any damages. Many reputable public adjusters will give you a free estimate of the damage to your property, and knowing when not to file a claim can protect you from financial headaches down the road, since many insurers follow a "two-strikes-and-you're-out" rule.
"File more than two claims in two years, and many insurers will drop you," says Jeffrey Hall of Coastal Construction Inc., a public adjuster in Beachwood, N.J. Even if you never receive a dime from your insurer for damages to your property, just filing the claim counts as a strike against you. After you've been dropped by your current insurer, you'll be charged a much higher premium by your new insurance company because of your claims history.

Cutting Your Losses When Fire Strikes

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:43:15 -0500

(Concerning Public Adjusters) Business Week, July 4, 1983, Personal Business Supplement
Each year, more than half a million American families suffer the trauma of a fire of some seriousness in their homes, and the annual bill for damages is edging close to $3 billion. But as people discover every day, the fire is only the beginning. Assessing the damage, negotiating a fair reimbursement with the insurance company, and arranging for adequate repair and rebuilding is a major headache. The process can last for months. If such a disaster should strike your home, some advance knowledge of what's involved in picking your way through the insurance-claim system can save you a lot of heartache -- and probably a significant amount of money. The first piece of advice is probably the hardest to follow, because it involves a good deal of boring legwork: Make a record of what you own, when you bought it, and what it cost. As a rule of thumb, household and personal possessions are insured for half the amount of insurance on the structure.

This means that if your home is insured against fire for $200,000, the contents automatically are insured up to a maximum of $100,000. If you have especially valuable furnishings, your insurance agent may already have persuaded you to take out special coverage that boosts the maximum payoff on house contents to about 70% of the insurance on the structure.

GUESSWORK
But these numbers don't mean that you will be reimbursed to the maximum. And exactly how much you get is subject to a degree of proof and a certain amount of negotiation.
Adequate records are only the beginning of the claim settlement process. "From the moment of the first flame," says Lenore Berck, a New Jersey educator and musician who suffered through a disastrous fire some years ago, "you and your `supportive' insurance company become adversaries." What you must be prepared for is to discover that the insurer wants to settle as fast as possible and as cheaply as possible.

Your lawyer is a key actor in the drama, one who will keep you from making potentially damaging mistakes. For one thing, make no statements and sign no papers -- especially if proffered by a representative of the insurance company -- unless your lawyer approves. Remember that the company's interest is in getting a settlement going as fast as possible. As one expert puts it, "the faster you settle, the less money you get." So take your time and let the lawyer handle it.

One Key service your attorney can perform: finding a public adjuster. A public adjuster is a quasi-professional (some 30 states require a licensing examination to practice) who represents you "on contingency" in negotiations with the insurance company. That means the adjuster gets a percentage of the settlement. Insurance adjusters such as Ed Reilly are hired by the insurance company to negotiate in their behalf, so don't confuse the two.

What does the adjuster do for this money? Plenty. In the first place, points our Herman Roth, a New York-based public adjuster, the adjuster knows how to read an insurance policy, which is no easy matter. Basically, homeowners are covered by one of several types of policy, designated with the symbol HO. Chances are you are insured either under HO2 OR HO3. The higher the number, the broader the coverage. And the adjuster knows the provisions as well as he knows his own name. For example, Roth says, "if a guy in a tank truck comes and delivers a load of heating oil when you no longer have a tank, since you switched to gas, he floods the basement. HO3 covers that; HO2 does not.

The adjuster also is invaluable in taking inventory of the charred remains after a fire. What he does is walk you through the house and ask questions: What was hanging on that wall? Was this a couch or a chair? What was the material? How many dresses do you think were in that closet?

SHORTCUTS
On structural matters, the adjuster can tell by looking at the rubble whether you had finished plaster walls. If so, he will not let the insurance company make an offer to replace them with drywall, which costs a fifth as much. Nor will he accept an estimate for replacing floor beams 24 in. apart rather than the standard 16 in., another common shortcut. He also tends to be fussy about such things as matching sections of bathroom tile that must be replaced. "We get a detailed breakdown of every proposed expense," says Roth. "The client usually cannot be bothered."

When it comes down to the wire in negotiations, the adjuster is the one who mediates between the company's designated contractor and your own renovator, if you have engaged one. When he has brought them together on costs and both you and the company representative have approved the final figure, his job is done.

Roth agrees with other experts that patience in claims adjustments is a virtue. If your adjusters in a tearing hurry to negotiate and make a settlement, take that as a warning signal: The adjuster may be more interested in saving time than in extracting the last $1,000 of settlement. "I tell people, `Don 't rush me'" says Roth. He also makes another point that clients often forget: You can never collect more money than the value of the insurance policy. And some companies automatically chop 25% from the initial claim amount as a starting point for negotiation. If you are underinsured in the first place, that's courting trouble. In fact, if your insurance is written for less than 80% of the appraised value of the home, the insurance company considers you a co-insurer. That means that legally you accept a prorate share of the risk, and the company pays off only on its share. The moral: Keep your homeowner's insurance up to date by increasing the face value of the policy periodically.

WHAT TO DO AFTER THE FIRE TRUCKS LEAVE
Call your lawyer, who will find and engage a public adjuster to handle negotiations, and who will advise you on any settlement.

Burned Out: Public Adjusters Assist Fire Victims - for a Fee

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:42:32 -0500

(Concerning Public Adjusters) Bill Schey, The News Tribune Washington Centennial

When Will and Karen Gerrier had a house fire on Vashon Island, they hired a public adjuster to represent them in dealing with the insurance company.

The company's first offer to replace the damaged structure was $4,000. The Gerrier's eventually received $30,000 (minus the adjuster's fee).

When fire gutted a McKinley Hill rental unit owned by Jenice Valbert, she tried dealing with her insurance company in persona and was told that she would recover "about 40 cents on the dollar." She hired a public adjuster and received enough to refurbish the burned-out shell, and had $11,000 (before paying the adjuster) left over.

When their home near Bremerton went up in smoke, Lind and Fredi Perry chose to deal directly with their insurance company.

"I battled the insurance company a good year and a half," said Fredi Perry, whose claim settlement was about $250,000. Public adjusters collect about 10 percent of a claim, meaning Perry saved $20,000 to $25,000.

But in other ways, she paid a heavy price. "If I ever had another fire, I'd just walk away," she said. "I would never, ever go through that claims process again. . . They (insurance companies) just make it difficult. I don't think they are in the business to pay claims."
If she had it to do again, would she hire a public adjuster? "No, somebody else would have to hire him," she said, "because I'm leaving town."

Such frustration with insurance companies is not uncommon among homeowners who have filed claims. As a result, many have turned to public adjusters to represent their interests. A large number of insurers, in fact, believe these are the real good-hands people.
Television ads that portray friendly insurance people taking care of their smiling clients the day after afire are mostly that -- advertising claims.

"In real life it just does not happen like that," said Tacoma public adjuster Marvin Kaye.
Adjusters come in many colors. Most common are insurance adjusters, who legally cannot represent both the insured and insurer; their allegiance is to their employer, the insurance company. Independent adjusters are used by insurance companies that no adjusters of their own. Enter the public adjuster, who advocates for the consumer. Although only about a dozen such firms are licensed by the state, finding one is usually no problem. They are often among the first people at the scene of a fire. They have been called firechasers, and worse.

"Insurance companies don't like us, which is probably the best recommendation we have," Kaye said. They're going to discourage people and tell them they're going to handle it, and they will handle it, but -- What You Should Do - Here are experts' tips on what to do should you have a house fire:

1. Don't sign anything until you've had two or three days to think about it. this includes non-waiver agreements with the insurance company.

2. Find out immediately from the insurance company what they'll pay for temporary living expenses. Get it in writing.

3. Don't allow anyone to take or dispose of debris from your home right away. If it's gone, you have no proof you ever had it.

4. Remove jewelry, weapons and other valuables from the house. Consider hiring security -- you will be reimbursed for it. Vandals and burglars follow the fire and remember, you are liable for anyone hurt in the rubble.
5. Don't use any of the food or medicine. Even if it does not look bad, chances are it has been damaged.

6. Don't let repairs start until you have some scope of the work. A contractor can cut corners on a myriad of things if he has carte blanche.

7. Board up the windows and roof, or hire someone to do it, if you don't hear immediately from an insurance representative. you will be reimbursed.

8. Save all receipts relating to the claim, including temporary living expenses, security, and so on. Keeping a notebook with listings of three expense categories -- temporary living, contents, and structure -- is a good idea.

9. Check out qualifications and references before hiring a public adjuster. Start by calling the Better Business Bureau.

10. Don't trust a statement or estimate unless it's in writing.

In business since 1970, Kaye estimated he has handled more than 1,000 claims and has "a 98 percent `happy' ratio."

Others whom public adjusters have assisted:
Bob Andrew, chief of the Tacoma Better Business Bureau, was contacted when his home burned, but he opted to deal with the insurance company himself. It took 2-1/2 years and a lawsuit against the company before "Andrew" "finally wringed out every penny."
"I was always fighting. . .," he said. "My wife and I have talked about it many times, and that was the black hole in our lives. It drained us, totally drained us. It was just about the most agonizing fight we've ever been through."

Andrew found another insurance company.

Meadowdale Baptist Church in Lynwood had $480,000 in insurance when its 6,000-square-foot building burned. The day after the fire, the insurance company agent "told us he was not going to have anything to do with the settlement, he was going to be no help," Pastor Howard Cooper said. The insurance company offered $216,000. The church hired a public adjuster and received $300,000. "Even with the public adjuster, we fell far, far short of what we should have gotten," said Cooper. "We were told the building was overinsured." The church built a new building and found another insurance company.

Gordon Houston tried to work with his insurance company after his Kent home burned along with valuable tools and two antique cars in his garage. He later hired Property Loss Consultants, Inc., a public adjuster firm owned by Jack Thomas and based in Arlington.
"He got me as much money for personal belongings, about $40,000, as the insurance company offered me for the whole house," Houston said. "Then they got me about another $40,000. If I had another fire, I would hire them in a minute." Houston was dropped by his insurance company.

John Lox of Lakewood used a public adjuster to handle a $50,000 house fire claim.
"I'll tell you one thing: Insurance companies are out to not give you the money you got coming." Cox said. "They (public adjuster) charged me 10 percent, but I feel it was worth every penny of it. "From what I gathered, they went through a lot of trouble with these (insurance) people . . . If you don't know the ropes, they can say and do whatever they want."
Royce Hensley of Graham attempted to inventory all his belongings after 1988 house fire, then gave in and turned to a public adjuster. He settled for "almost twice what the insurance company offered." Inventorying is one of the chief services of the public adjuster, according to Gene Davis, deputy state insurance commissioner.

"Generally, they will be responsible for completing an inventory of personal items and attempting to establish a value," Davis said. "In the case of a bad fire, that can be a very time-consuming process. Then the structural damage is usually scoped out by the adjuster or a contractor the adjuster brings in. That gives the insured an expert opinion." Establishing the value of items is difficult. Kayse said he sometimes inventories 4,000 items after a fire, and each must be depreciated and then negotiated. Several of those who talked to The Morning News Tribune said insurance companies push for quick settlements, a practice that often is not in the consumer's best interest. "They like to rush in, fix it and be gone," Houston said.
Perry, whose fire took place five years ago, said there are "still things showing up missing or damaged that I was not paid for. I chalk it up to experience."

An article by Christopher Boyd, taken from the New York Times Real Estate, Sunday, September 25, 1994, and in the Public Domain.

Why Hire a Public Adjuster?

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:41:22 -0500

(Concerning Public Adjusters) Barnett Bank Newsletter - Volume 2, No. 1, Winter 1996

Sooner or later, every business owner confronts an insurance nightmare. Gerald Erlich's real-estate firm, Hanover/Erlich Ltd., in Denver, faced such a nightmare last year, after a tenant in his condominium-loft project fell asleep while smoking. "The mattress caught on fire, but the real damage came from the sprinkler system that started automatically," Erlich recalls. His original estimate of the damage was between $5,000 and $10,000.

But Erlich didn't attempt to file the insurance claim by himself. "Years earlier I had had a loss experience that taught me how difficult it is for consumers to deal with insurers," he says. In the course of his earlier claim, Erlich hired a public insurance adjuster to represent his interests. After last year's fire, he decided to do the same.

Public adjusters are "insurance adjustment experts who work exclusively for the insured in cases where a fire or other insured peril occurs," explains R. Scott deLuise, of Matrix Business Services, the Denver firm that handled Erlich's claim. What's the advantage? "When you file a large claim, you enter a minefield," deLuise says bluntly. "A consumer needs to understand--before even filing a claim--that the goal of insurance companies is to pay out as little as possible."

According to deLuise, most consumers mistakenly assume that quantifying losses from, say, a theft or a fire is simply a matter of accuracy and precision: "This is an art. It's not in the policyholder's interest to assume that whatever loss estimate the insurance company comes us with is accurate."

There is a good reason for the discrepancy. Following a loss, public adjusters scan policies to identify all possible sources of insurer reimbursements. "With the Hanover/Erlich fire, we tracked down extensions of coverage and endorsements that would up covering much more than what appeared on the fact of the insurance policy," recalls deLuise. "We ultimately recovered the cost of extra management fees that were incurred because of the fire; lost rent from apartments that suffered water damage; and the cost of hauling away debris."
In fact, insurer reimbursements far surpassed Erlich's original estimate. "We received more than $60,000, which I could never have achieved on my own," he says. "I'm convinced that filing a claim without a public adjuster would be as impossible as performing brain surgery on yourself." Typical fees are $150 to $300 per hour, or 10% of collected losses.

For referrals, contact the National Association of Public Insurance Adjusters at 703-438-8254.

The association's members have been in business for more than two years and adhere to ethical standards.

An article from Barnett Bank Newsletter - Volume 2, No. 1 Winter 1996, and in the Public Domain.

Do you need your own claims adjuster?

nospam@example.com (Public Insurance Adjuster) — Tue, 8 Jan 2008 15:40:23 -0500

Dana Dratch, Bankrate.com, September 23, 2003

Angry that your insurance company isn't moving as fast with that claim check as you'd like? Or maybe the adjuster's offer is less than you need to cover your losses? Perhaps you need your own adjuster.

Public adjusters assume all of the duties necessary to get your claim processed, including making an inventory of the loss and presenting your case to the insurance company. A good public adjuster has experience in the industry and will understand your contract and the company's responsibilities right down to the fine print. In exchange, a public adjuster receives a percentage of your claim.

"For the most part, people like using [a public] adjuster because they like the idea that someone is working on their behalf vs. someone working on behalf of the company," says P.J. Crowley, vice president of the Insurance Information Institute.
But the decision to hire your own adjuster is far from a slam dunk. Finding a competent public claims adjuster is a lot like finding a medical specialist during a health crisis: It takes some research at a time when chances are you need to move fast.
Since you will be paying the adjuster yourself, you don't want to hire one unless it's really necessary.

"If they're good, it really makes a lot of sense," says Chris Farrell, host of the nationally syndicated television show "Right on the Money!" and author of Right on the Money: Taking Control of Your Personal Finances. "And if they're bad at it, you've really created a nightmare for yourself."

There are some horror stories. "Some public adjusters, to justify their fee, will exaggerate their claim," says James Markham, senior vice president and general counsel for the American Institute for Chartered Property Casualty Underwriters and the Insurance Institute of America.
And some insurance company adjusters may bristle if you bring in your own expert, he says.
"Some company adjusters are instantly suspicious or even antagonistic whenever they have to deal with a public adjuster," Markham says.

Most often, public claims adjusters are called in for large property claims, says Rick Lambert, chair of the agent and broker section committee for the Chartered Property Casualty Underwriter Society.

For smaller claims (less than $25,000) or auto claims, which are typically based on a fairly standard formula, it's probably a waste of money to hire a public adjuster, he says.
If you have a large property claim and are considering a public adjuster, ask yourself two questions: First, is your company acting quickly to replace your losses? Second, have those efforts been effective and fair?

"Is the company out there within 12 hours, or has it been a week since the fire and no one's come?" says Lambert, also vice president of Early, Cassidy & Schilling Inc., an independent insurance agency in Rockville, Md. "Most good companies are going to come out there pretty quick."

Most well-known companies also are going to play fair when it comes to claims, he says. But, Lambert admits, in today's economy when companies are hurting, "Some are going to play hardball."

There are also a few other instances when it could be practical to hire a public adjuster:
• You've sustained a partial loss. Half the house burned down. Now you've got to document which of your possessions survived the fire, which burned and which are damaged beyond repair.
• You don't have the time to follow up on your claim. Whether you're a two-income couple with kids or a busy professional who travels frequently, filing a claim and following it through will take time, especially if you don't have a record of your possessions and their value.
• You had loved ones injured or killed in the incident. If you're spending your days at the hospital or mourning a family member, you may not even want to think about the claims process.
• The loss is business-related. Rather than assign an employee to handle the claim, some companies will outsource the job.

Even though you'll want to move fast, you still have to do your homework before you hire a public adjuster.

"It's delegating," says Farrell. "You're hiring their knowledge and expertise. It looks good on paper, but it's easy to get ripped off."

And while it should go without saying that you don't hire the public adjuster who knocks on what's left of your door after a fire or tornado, plenty of desperate folks have done just that and really regretted it.

Here's how to find a reputable public claims adjuster:

1. Poll the people you trust. Call your accountant, your lawyer and your neighbor. Ask if they've ever used a public claims adjuster or know anyone who has.

2. Contact the National Association of Public Insurance Adjusters. This trade organization, which represents 110 of the industry's largest firms, maintains a searchable database of members who have at least two years of experience and uphold a professional code of conduct, according to David W. Barrack, the group's executive director. In addition, the organization also offers a certification program. A Certified Professional Public Adjuster must have five years of experience and pass an exam, while a Senior Professional Public Adjuster must have at least 10 years of experience and pass a more rigorous test.

3. Once you get a few names that look promising, interview them. Ask about rates, references and credentials. Contact their references and quiz former clients on the adjuster's performance. Was the person effective? Available? Fast? Accurate? Did he or she deliver what was promised? If the adjuster claims any kind of certification, get the name of the accrediting body and call it.

4. Call your state insurance office. Many states license or regulate public claims adjusters. If yours does, make sure your prospect is in good standing with no unresolved complaints. It won't hurt to call the Better Business Bureau while you're at it.

5. Ask your insurance agent. Sound like a conflict of interest? Not really. You're hiring an adjuster to represent you to the insurance company. So what is this person's reputation within the industry?

Money, money

Generally speaking, the fee is around 10 percent, and the percentage may vary with the size of the claim, says Barrack. But beware, some public claims adjusters are charging up to 50 percent, according to Farrell.

Even though shopping for price is important, "emphasize competence and integrity above fees," says Markham. "The ugly truth is that exaggerated claims can cross the line to fraud. And the fact that you have a public adjuster doing it doesn't absolve you."

Don't let the adjuster steer you toward particular contractors, says William W. Baldwin, president of The Baldwin Company Inc., a Charlotte-based public insurance adjusting firm.
"There should be no ties to a construction business," he says. "To me, there's a conflict of interest."

Wonder if your hired gun might damage your relationship with your insurance company, especially at renewal time? A more important question might be, "Why was it necessary to hire a public adjuster in the first place?"

"There has to be an element of trust and confidence here," Crowley says. "If you don't trust your insurance company, chances are at renewal time you should be shopping for someone you do trust."

Dana Dratch is a freelance writer based in Atlanta.