Insurance Claims for Natural Disasters Are on the Rise; So Is the Rise of the Public Adjuster
“An initial offer of $97,000—less than 10% of what was actually owed” turned into “a final settlement of over $1.4 million, including a final additional payment of $1,065,000. This represented an increase of nearly 15 times the original offer, ensuring our client received the compensation they were rightfully owed.”
Exhibit A. And the owner of a home damaged by fire in West Palm Beach, Fl. never had to hire lawyers, step foot into a courtroom or plead their case in front of a dispassionate judge.
The homeowner in this case who may have felt they lost everything employed the services of a public adjuster and became a millionaire.
Will the same happen for those decimated in the path of destruction from the May 16 tornado in the City of St. Louis?
I’m a victim of the #StLouisTornado with significant damage to both the exterior and interior structure. Just a mile away, homes were completely wiped out. The sad truth unveiled from the May 16 storm is that around 70% of those affected are either underinsured or not insured at all.
Things are bleak for so many and will be for awhile. But as we keep hearing, there’s always hope.
Let’s look at it this way. With this catastrophic event came an education. Home insurance should be mandatory. And for those whose insurance companies “try it” and lowball their customers with recovery and replacement funds that are downright laughable, the public insurance adjuster may be the lifeline.
Ambulance chasers. Snake oil salesmen. There are many names for individuals without the badge of a professional degree who descend upon communities and offer an opportunity to regain total value—if not more—of damaged property. Time to admit, even though this is an industry of which most of us have never even heard, we may want to offer up the proverbial chair, invite them into what we have left of a home and take a listen.
So what exactly is a public adjuster?
According to the National Association of Public Insurance Adjusters, a public adjuster (PA) represents the interests of the insurance policyholder in the preparation, presentation and settlement of first-party property insurance claims. A qualified PA has specialized expertise that can simplify and speed up this complicated process. A PA works only for you–not the insurance company, not the roofing company, not the general contractor–and serves as an important protection for your rights as a policyholder.
Sounds ideal especially if they take their fee on the back end. For the ones with whom I’ve spoken, they do and their commission can range anywhere from five to 25 percent, which is probably also negotiable.
So why hire this professional, or on the other side of it, get into this as a profession at all?
The firm that won the settlement mentioned at the top of this article is Claim Concepts. This company is not licensed in Missouri where I am (and yes, public adjusters can obtain a license from the state in which they practice), but company founder, Greg Roover, took time to answer a few questions as to why policy holders may want to get to know the public adjuster in their area.
Nicole Franklin: When did you decide to become an insurance adjuster and why?
Greg Roover: My experience as a policyholder with a Public Adjuster (PA) after the Northridge earthquake planted the seed as I was shocked at how much value they brought to the table. Shortly after moving to Florida, I sold my share of the business to my partner. Hurricane Wilma hit the area I moved to shortly after relocating to FL. I had a good friend that was an adjuster for the insurance companies, mostly handling catastrophe claims. I called him to see if there may be some work available as I had the time and wanted to learn the profession. I continued adjusting claims for the big insurance companies for a few years, before obtaining my Public Adjusters license and forming Claim Concepts.
NF: How would you best describe this profession and your role?
GR: I see this profession as leveling the playing field for vulnerable individuals after a loss. It's frustrating to see insurance companies take advantage of those unfamiliar with the process, often leading them to speculate about events, which can result in claim denials. There's no better feeling than advocating for a policyholder and securing the settlement they deserve. The 15x settlement you mentioned isn't a testament to our skill but rather to how poorly the insurance company handled the claim initially.
NF: Any particular case stand out that you considered a “win” that keeps you going?
GR: Many cases are impactful, and we've shared some on our website. Most client stories are similar to what you've read, and they all motivate us because there aren't enough qualified public adjusters to help everyone. The main challenge is spreading awareness, as many people nationwide still don't know what a PA is.
Thank you, Greg Roover!
Do you have a PA testimonial to share or enlighten readers even more? Comment here and let us know. The people of St. Louis and future victims of natural, accidental and other tragic calamities may benefit. Let’s chat about it! And stay safe out there!