Adjuster Fee & Recommendation?
How much does an adjuster typically charge to assist in a fire insurance claim that will probably be in the $40,000 range? Also, any recommendations for an adjuster that you were satisfied with? Thanks.
How much does an adjuster typically charge to assist in a fire insurance claim that will probably be in the $40,000 range? Also, any recommendations for an adjuster that you were satisfied with? Thanks.
I just stumbled on thus website when doing research on my competitors. I am a public adjuster in AZ, but I was a restoration contrator for 10 years before getting licensed as a public adjuster, so I know both sides of the insurance game. Insurance companies are profit making entities and report to shareholders. Premiums represent their gains, claims represent their losses. Any profit seeking company is out to minimize profits, plain and simple. Once you have a claim, you just moved to the opposite side of the balance sheet. Public Adjusters are absolutely helpful especially when you don’t have experience dealing with the insurance companies. Bad Faith is a legal issue, and is usually determined only through litigation, which is very long and painful process. Fling a complaint with the Dept of Insurance may or may not get their attention. Insurance companies get sued all the time and aren’t afraid to go to battle with you.
Let me give you a couple examples.
1. I have worked on 76 hail claims from a huge hailstorm in Phoenix back in October. Industry standards for general contractor overhead and profit is 20%, meaning that the insurance company should automatically include this for you to hire a general contractor and pay his fees. Not one of these hail claims included this O&P. It was very easy for me to get, but for the average homeowner, they have no idea that they were just shorted.
Insurance policies do not say anything about O&P, or what means and methods they will use to determine the value of your loss, or what your rights are as the insured.
2. I have a client who has an ACV only policy, which means the insurance company will pay the depreciated amount of his property not what it actually costs to replace. His insurance company’s price database said that many of his items were older than they should be, so he depreciated his windows, appliances, HVAC, and roofing by 99%. He was given about $35 to replace his dishwasher, and about $15 per window for replacement. I don’t know anyone who can replace a window frame and glass in a block wall for $15. Contractors are not able to deal with policy issues or coverage, which is why I was able to help him.
If I was licensed in NY, I would love to help you out. My advice is to search for the National Association of Public Adjusters (NAPIA), and look in their database for a couple near you and interview them. Get as many references as you can and call the references, as well as look up their license with your states Insurance Dept. They would list any complaints or violations they have against them.
My experience was in NJ, but i used an adjuster when someone drove a van up on to my porch and through the front of my house causing $36,000 worth of damage. The adjuster took 10%, and I could not have done it without him.
Justmoved has the correct approach. Any licensed and reputable contractor is going to be used to dealing with Insurance Companies. They will scope out the work and provide an estimate. The insurance company will also provide an estimate at which point there may be differences:
Differences are typically 1 of 2 things – Your contractor is too high and will work with the insurance company to adjust his bid. Or, your contractor is including upgrades to previous condtions or fixing damages not related to the loss. This is where most people run into trouble with insurance companies, they either dont understand that damage to part of there bathroom tile floor does not mean the insurance company is obligated to renovate their entire bathroom. Or they have ACV coverage and want to be paid replacement cost.
In my experience, public adjusters only serve to complicate and drag out the process because insurance companies do know they have a database of “Friendly Contractors” and they have a reputation for stretching the truth on claims – Bigger Claim = Bigger Fee.
Two secret phrases I will share with you: “Bad Faith”, and “State Department of Insurance”. If you really really feel you are being treated unfairly, utter those phrases and watch how the magic happens. Also filing a report with the state insurance department makes things move much quicker and gets their attention.
If you are looking to “Score” on your insurance claim and get back more than you are truly entitled to, then a Public adjuster may be the way to go, but be prepared for a long drawn out process with lots of battles and possible disappointment in the end.
who is your insurance? i had a terrible, terrible experience with allstate on a claim. do you have a contractor you used in the past and you thin you can trust? that is probably better than an adjuster and a ‘database’ – that’s what the insurance uses as well and prices are very different. we had a 40k claim and it was a huge fight, looking back i would probably pay someone to take care of this, especially if i didn’t have a contractor to help out.
The adjuster will have a stable of contractors that will give you a very “friendly” estimate for purposes of the claim. Obviously your under no obligation to use them. Remember the higher the settlement the higher the adjusters fee. Crazy system but that’s the way it works.
the adjuster fee 3% to 12% in ny.
Just to be clear, the fire will probably require a gut renovation of an apartment plus a few other issues. I’m not qualified to figure out what a gut-reno costs between demolition, supplies, materials, labor, (permits?) etc. I could get a couple of estimates from contractors, but I hear they have little motivation to follow through as there is no guarantee they’ll get the job. That’s why I’m considering an adjuster because as I understand it they have databases that calculate all this.
Dealt with a large loss (+$1MM) a few years ago and found the adjuster’s help invaluable. Fees are based on a percentage of recovery and capped at 12.5% by law. However the percentage is negotiable. I’ve see as low as 5% for larger claims. I had a very good experience and recovery using Frd Yutkowitz. His number is 516-504-4466.
I would aggree with NSS. I had a recent claim and fought with them for months. The guy at my insurance company ended up fired, but I understand where he was coming from, he just never bothered to explain it. Mine was a roof claim from the wind damage from last summer. One side of the roof is all ripped up and that is all they will pay for. Nevermind it is kind of hard to replace half a roof. I have a direct replacement policy, but only for what is damaged. They do not care that the roof has 4 layers on it, you just have to pony up the rest to do it properly. Get an adjuster if you just do not have the time or are willing to fight. I can see if you just suffered a big loss that you might not have it in you to deal with it.