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Recently, the nation has faced devastating wildfires, tornadoes, and flooding that have affected both urban and rural communities significantly.
Many homeowners are now confronting harsh realities, realizing that time does not necessarily mend the physical and financial damage wreaked by their experiences with certain insurance companies. Some companies are reportedly engaging in dubious practices aimed at minimizing their payouts, including undervaluing property losses.
For those who question this assertion, a simple online search for “property damage undervalued by claims adjusters” can offer insight into this troubling trend.
Understanding Your Rights and Options
Property owners frequently grapple with the pressing question: “What should I do if my insurance provider is unresponsive or seems to be causing delays?” There is often uncertainty about whether to engage an attorney or a public adjuster in these situations.
This decision can be pivotal, especially when one’s life is suddenly upended by disasters. To shed light on this, I consulted Karl Susman, an independent insurance broker based in Los Angeles and a contributor to several financial publications, alongside John Petrov, a public adjuster from Diamond Bar, California.
Petrov clarified the distinctions in the roles of claims adjusters. “Typically, all claims adjusters share a common responsibility,” he explained. “Those employed by insurance firms usually work to limit claims payouts, whereas public adjusters represent the interests of the policyholders. Their mission is to advocate for the fair handling of claims, ensuring clients receive the full compensation they’re entitled to.”
In my experience with lawyers in this field, many public adjusters who left large insurance companies did so due to unethical practices, expressing a strong desire to help clients with integrity.
Be Cautious of Pressuring Tactics
In our discussion, Susman and Petrov addressed an alarming risk that follows a disaster: the chance of being pressured into signing contracts with public adjusters who appear unexpectedly, promising quick resolutions.
Petrov highlighted the importance of vigilance: “This can often tarnish the reputation of public adjusters. Always be wary of anyone who arrives unsolicited, offering to manage your claim. It’s vital to consider your options carefully.”
Susman echoed these sentiments, advising homeowners to choose local professionals and seek referrals from trusted contacts. “Remember, while insurance company adjusters are on the payroll of their firms, you will be compensating the public adjuster based on the settlement amount they secure for you. Do your research before entering into any agreements.”
Key Considerations for Filing a Claim
Both Susman and Petrov offered essential guidelines to help demystify the claims process:
- File your claim promptly, as insurance policies often have specific deadlines.
- While consulting with an attorney can be beneficial, it’s generally best not to escalate legal fees early in the process. However, if you are required to provide a sworn statement, legal counsel is advised.
- Allow the claims process to progress naturally; if you reach an impasse after discussing your situation with a claims supervisor, it may be time to consider hiring a public adjuster.
Take Your Time with Offers
In the wake of significant losses, clients often feel an overwhelming urgency to accept offers quickly, as they strive to rebuild their lives.
Understandably, this can lead to hasty decisions, especially relating to lowball offers following a disaster.
This urgency can create a reliance on public adjusters, who, while requiring a fee (which varies by state), may ultimately facilitate a better outcome for the claimant.
For further insights on navigating insurance claims, both Petrov’s website and Susman’s website provide valuable resources.
Conclusion
In a time of crisis, understanding your rights and the nuances of engaging a public adjuster or attorney can prove essential in securing the compensation you deserve. Consult with reputable professionals, take your time in making decisions, and ensure your claims process is conducted with integrity.
This article reflects the insights of contributing advisers and does not represent the views of the editorial staff. To verify an adviser’s credentials, please visit the SEC or FINRA.
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