After Hurricane Sandy, I started seeing newspaper articles about homeowners and businesses that needed the services of Public Adjusters.  A public adjuster is an insurance claims adjuster who advocates for the policyholder (middleman) in appraising and negotiating a claimant’s insurance claim. Aside from attorneys and the broker of record, public adjusters licensed by state departments of insurance are the only type of claims adjuster that can legally represent the rights of an insured during an insurance claim process.

A public adjuster will be most beneficial when it is clear that the insurance company will pay the claim and the only issue is the proper identification and valuation of the loss. Unfortunately, they will still need you to document your loss.  It was your house and you’ll still have to provide from memory or sift through debris to determine what you had. This is where a detailed Home Inventory and copies of all important documents, stored offsite of course, is so very important. If you’ve never documented your possessions you might find yourself doing more paperwork than you bargained for. Even with the public adjuster running interference between you and the insurance company you still must be 100 percent involved in the process.  Only you know the extent of your loss!

Most public adjusters get paid a percentage of whatever they recover for you. You can negotiate percentage, and it generally ranges 15% to 25% although some states cap the fee. Primarily they appraise the damage, prepare an estimate and other claim documentation, read the policy of insurance to determine coverage and negotiate with the insurance company’s adjuster. Public Adjusters can be aggressive in soliciting clients after a disaster, so take your time and get educated before deciding to retain one.

There are three classes of insurance claims adjusters: staff adjusters (employed by an insurance company or self-insured entity), independent adjusters (independent contractors hired by the insurance company) and public adjusters (employed by the policyholder). “Company” or “independent” adjusters can only legally represent the rights of an insurance company.

The public adjuster’s main responsibilities are to:

• Evaluate existing insurance policies in order to determine what coverage may be applicable to a claim
• Research, detail, and substantiate damage to buildings and contents and any additional expenses
• Evaluate business interruption losses and extra expense claims for businesses
• Determine values for settling covered damages
• Prepare, document and support the claim on behalf of the insured
• Negotiate a settlement with the insurance company on behalf of an insured
• Re-open a claim and negotiate for more money if a discrepancy is found after the claim has been settled

Typically a policyholder hires a public adjuster to document and expedite their claims, obtain a more satisfactory claim recovery, more quickly, and completely restore their residence or business operations, and insulate themselves (although you still must be 100 percent involved) from the stress of engaging in an adversarial role with a large corporation.  

However, the cost of hiring outside experts, no matter how well-earned, can be an added burden when they are borne entirely by the policyholder. The added burden can be alleviated by the work of a public adjuster. However, policy holders who are not properly indemnified (underinsured) by their insurance carriers may be left with little choice but to hire professional assistance to recover the claim payment to which they are entitled.

Public adjusters must be able to recognize claims that may be insubstantial and disputable and explain such problems to the client. The everyday meanings of terms like “collapse”, “partial collapse” and “extent of physical damage” might be entirely different from their legal interpretations, requiring the adjuster to clarify such terms for the client.  Regulations regarding the uses of these terms are constantly in a state of flux, so it’s important for public adjusters to have a firm grasp of the law including the division of legal responsibilities between insurance companies and policyholders.

When to contact

While it is not always clear when a policyholder may benefit from hiring a public adjuster, the most benefit is likely to be realized if they are engaged immediately in case of a loss. Shortly after the insurance company receives notice of a loss, an adjuster representing the insurance company will visit the policyholder to gather facts about how the loss occurred the magnitude of the loss, and the possibility of subrogation (transfer of your claim to another insurance company). Incorrect, incomplete or inadequately expressed answers to the adjuster’s questions may reduce the amount that can be claimed. A public adjuster engaged early in the process, before the fact-finding stage, will have more opportunity to help the policyholder receive a fair settlement for all losses legitimately covered under the insurance policy. However, any time during negotiations with the insurance company and even after a settlement has been received by an insured; a public adjuster may be able to negotiate for a higher amount

There are dangers in the public adjuster business and not all home/business owners have a good experience. Insurance settlements are always slow to arrive, and it’s not unusual to have to wait for several months or even a year for that final check from your carrier after a major house fire. And not all of their clients have that kind of patience. Public adjusters can also be a godsend, if you lose everything, have no documentation or detailed inventory, and are underinsured you might need an advocate to act on your behalf and get a fair settlement from your insurance company.

 If you need the services of a public adjuster please do your homework and select a good reputable firm. Consider the following criteria when choosing a public adjuster:

• Don’t hire the first adjuster that comes along. Their ability to find and market to you says nothing about their abilities to serve you. 
•  Make sure your public adjuster is experienced in his field.  He should belong to a number of groups including, the National Association of Public Insurance Adjusters, (NAPIA) Windstorm Insurance Network (WIND), and United Policyholders of America. Many of these groups have strict ethical standards that members are held to and also have online directories that list their members. 
• Make sure they obey the law. 
• No public adjuster should make any promises of what they can do for you before first reading   and carefully reviewing your insurance policy as well as looking carefully at the loss.  Just as a good doctor must first look at a patient before treating them, the same should apply to public adjusting. They need to meet you, see your loss, and review your records (the policy among other things) before outlining a plan to get you back on track for a full recovery. 
• Make sure the public adjuster is licensed by the state of Connecticut or other States where the loss occurred. Contractors or restoration companies posing as public adjusters who tell you they can adjust your claim or negotiate with your insurance company are committing a crime. Just as a contractor cannot adjust your claim, a public adjuster cannot have a financial interest in your loss except for their approved public adjusting contract fee. 
• Do ask for and call any references a public adjuster might give you. Especially ask for references to clients with similar claims. Does your adjuster deal with your insurance company on a regular basis? Your public adjuster’s reputation with the insurance carrier can dramatically affect your claim. Make some calls and speak to references. You can usually find out about experience and reputation from folks in your community.  
• Beware of local contractors and remediation companies that offer to file your claim and then fix the damage. There has been some serious abuse in this area. In some cases these firms’ contracts will require you to sign over your settlement check to them. Sometimes they will spend less fixing your property and pocket the rest. In other cases there has been overreaching and unconscionable bills run-up which the insurance company then refuses to pay because the policyholder alone signed the work authorization without authorization from the insurance company. This often results in a construction lien being placed against the property.  In some cases, contractors offering to estimate the damages are practicing public adjusting without a license which is also against the law.  The advice here is to be careful. Always maintain control of your settlement check and keep the estimating and repair parties separate. Read and understand any work authorization form presented to you before signing it. 
• The adjuster is offering to handle your claim for a small percentage. Of course the type, size and complexity of the loss will impact the cost.  Most reputable adjusters charge between 5% and 15%. Anything less should be a red flag that the adjuster will not put in the proper time or effort in handling your claim or that you don’t need an adjuster for this particular claim. Also be aware that in a declared state of emergency by an authorized government agency, public adjuster contracts are limited to the percentage that you can be charged. 
• The adjuster pressures you to sign a contract on the spot. Don’t sign anything unless you have read it and understand it. Sleep on it – life experience is that a good night sleep will often help resolve any conflicts, questions, thoughts or concerns you may have.
•  Note how long your adjuster has been in the business. During the hurricanes of 2004-2005 and Sandy in 2012, the number of licensed public adjusters increased significantly in New England. Unfortunately, many of these individuals were trying to make a quick buck on all the outstanding claims that occurred.  Insurance companies like working with a reputable and ethical public adjuster. It makes their job easier and gets the claim settled faster. It also makes the process easier and less stressful for you.

EXTREME HEAT ALERT

 Know the signs and symptoms of heat stroke. They include:

Body temperature greater than or equal to 105 degrees Fahrenheit.

• Skin that is hot and dry with red spots.
• Mental confusion.
• Loss of consciousness
• Convulsions

Note: If you are experiencing these symptoms, dial 911 or visit a hospital emergency room.

Be Prepared for the Extreme Heat Conditions:

• Have the phone number of your family doctor clearly posted next to your phone (and stored in your cellular phone).
• Drink more fluids (nonalcoholic), regardless of your activity level. Don’t wait until you are thirsty to drink. Warning: If your doctor generally limits the amount of fluid you drink or has you on water pills, ask him/her how much you should drink while the weather is hot.
• Don’t drink liquids that contain caffeine, alcohol, or large amounts of sugar–these actually cause you to lose more body fluid. Also, avoid very cold drinks, because they can cause stomach cramps.
• Stay indoors and, if at all possible, stay in an air-conditioned place. If your home does not have air conditioning, go to the movies, shopping mall, public library, or a friend’s house/apartment with air conditioning–even a few hours spent in an air conditioned environment can help your body stay cooler when you go back into the heat .(See listing of designated cooling centers below)
• Electric fans may provide comfort, but when the temperature is in the high 90s, fans will not prevent heat-related illness. Taking a cool shower or bath, or moving to an air-conditioned place is a much better way to cool off.
• Wear lightweight, light-colored, loose-fitting clothing.
• NEVER leave any person or pet in a closed, parked vehicle.
• Visit adults at risk at least twice a day and closely watch them for signs of heat exhaustion or heat stroke. Infants and young children need much more frequent watching.
• If you must be out in the heat, limit your outdoor activity to early morning and evening hours. Cut down on exercise. If you must exercise, drink two to four glasses of cool, nonalcoholic fluids each hour. A sports beverage can replace the salt and minerals you lose in sweat. Warning: If you are on a low-salt diet, talk with your doctor before drinking a sports beverage.
• Try to rest often in shady areas.
• Protect yourself from the sun by wearing a wide-brimmed hat (also keeps you cooler) and sunglasses and by putting on sunscreen of SPF 15 or higher (the most effective products say “UVA/UVB protection” on their labels). 

Although any one at any time can suffer from heat-related illness, some people are at greater risk than others. Check regularly on:

• Infants and young children
• People aged 65 or older
• People who have a mental illness
• Those who are physically ill, especially with heart disease or high blood pressure

Keep Pets Safe and Cool During Heat Waves

Never leave your pets in a parked car – On a warm day, temperatures inside a vehicle can rise rapidly to dangerous levels.  On an 85 degree day, for example, the temperature inside a car with the windows opened slightly can reach 102 degrees within 10 minutes. After 30 minutes, the temperature will reach 120 degrees. Your pet may suffer irreversible organ damage or die. If you see an animal in distress in a parked car, contact the nearest animal shelter or police.

Limit exercise on hot days – If your pet gets overheated, spray him with cool water, when possible. If you are outdoors, buy a bottle of water an slowly pour it over your pet to aid in the cooling process. Avoid taking pets outdoors at the hottest times of the day, try to keep pets in an air-conditioned environment, limit activity and provide lots of cool water during periods of extreme heat.

Recognize the signs of heatstroke – Some signs of heatstroke are heavy panting, glazed eyes, a rapid heartbeat, restlessness, excessive thirst, lethargy, fever, dizziness, lack of coordination, profuse salivation, vomiting, a deep red or purple tongue, and
unconsciousness. If the animal shows symptoms of heatstroke, take steps immediately to gradually lower her body temperature and contact your veterinarian as soon as possible.

Many pet owners enjoy bringing their dogs with them for a day at the beach on beautiful coastal Connecticut. Always make sure there is plenty of shade areas available and never keep your best friend out in the sun too long.

Take care and stay cool!

Those two words describe the people in Connecticut, New York and New Jersey, whose homes and businesses where wiped out by Hurricane Sandy last year. The fact is, about two thirds of the homes in the United States are underinsured.  Most people who own homes are underinsured and non inventoried. 

Sure you can inventory your own property (it’s better than no inventory at all)  but it lends more credibility with the Insurance companies and provides for a smoother, faster settlement to your claim if it’s done by a professional third party.  After we perform a complete home/business inventory the owner gets a dollar amount total in all of our reports. Some owners realize, after seeing their report, that they are not adequately covered and immediately make arrangements to amend their insurance policies to increase coverage.

Insurers sell the promise that they’ll “put you back where you belong”, but they don’t always deliver. Homeowners and businesses (policyholders) take the insurers at their word and rely on agents to set their policy limits at full replacement value. But when policyholders come up short, they are shocked to learn that the laws in most states give agents immunity for failing to fully insure properly.

Homeowners would be wise to update their insurance policy and home inventory at least on an annual basis. After each annual follow up inventory Fairfield Home Inventory will update your reports and safe store them, or you can store them off premises yourself, until the next update is requested.