About Public Adjusters

Public Adjusters Are Advocates

The following is Ron Cercone's published response to a letter that appeared in the Visalia Times Delta attacking public adjusters.

The letter "Insurance Claims: Work with a reputable firm" by Larry Benevento, owner of ServiceMaster, has made inaccurate generalizations about public adjusters, calling them fire-engine chasers and fly-by-nights who listen to police scanners.

In fact, public adjusters are, by law, advocates for policyholders in the process of settling their insurance claims for loss. They represent neither the insurance company nor those restoring the loss. An entire body of law regulates the activities of public adjusters and they are licensed by the government.

Insurance claims are adversarial by nature. Insurance companies want to pay the lowest and consumers want the most compensation. It is human nature for people to protect whoever signs their paychecks. As someone working for the interests of the insurance company, that is what Mr. Benevento is doing when he attacks public adjusters and contractors other than the few who get all the referrals.

A fire and water damage restoration company is literally given work by insurance company adjusters and insurance agents. Believe me, it doesn't take much to buy the "good will" of most adjusters and agents (an occasional lunch, a desk clock, an ink pen, etc.).

Here's how it really works: A house burns. The homeowner calls his insurance agent. His agent or claims department calls his favorite restorator to remove the contents to be cleaned and restored. The restorator pulls up with a moving van and presents the homeowner with a paper to sign. They say, "The insurance company sent us." Most homeowners sign, not wanting to "rock the boat."

What the restorator fails to tell the homeowner is that if they spend $20,000 attempting to clean and they fail, and if their policy limits are used up on other total loss contents, the homeowner — not the insurer — must pay the $20,000 out of their own pocket. In effect, the insurance company adjuster is gambling with the policyholder's money.

I advise my clients not to sign anything a restoration company presents them other than permission to be on the property. Let the insurance company's adjuster sign the authorization paper.

My Advice on How to Choose "the Best" Public Adjuster

• Meet him in person and get a feel for whether you can trust him.
• Meet the actual public adjuster who will be working on the claim, not some salesperson.
• If the adjuster won't come to meet you himself, don't hire him.
• Call the State Department of Insurance and check for complaints.
• Ask for a curriculum vitae of the actual public adjuster.
• Find out about their education and which insurance companies they used to work for.
• Ask to see a list of books and publications in their library. A public adjuster who owns 500 books on adjusting, law and construction is more serious than one who owns none.

While these guidelines will help you choose "the best" public adjuster, almost any public adjuster is better than no public adjuster on your side — especially if their fee is a percentage of the additional settlement dollars they get for you over and above what you already got on your own.