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Bad & Unethical Public Adjusters
11 Key Questions to Help Your Clients Avoid Hiring a Bad One written by Chris Boggs, Big I VU
Hurricanes and other natural disasters draw public adjusters to the affected areas like sharks are drawn to the smell of blood. Another public adjuster likened the influx to a pack of wolves hunting prey.
Don't misunderstand, public adjusters can be beneficial in certain circumstances because of their property loss experience. A good, ethical public adjuster can be a valuable advocate for the insured because most insureds have never suffered a loss and don't know all the requirements. But not every public adjuster is good and even fewer are ethical.
In the wake of Hurricane Florence, count on at least some of your insureds being contacted by a public adjuster. Also, be prepared for the few who will contract with a public adjusting firm.
As the agent, you are still the primary contact following a loss, be ready to prepare your clients for the sales pitch coming from these public adjusters. Teach your clients to ask these 11 key questions BEFORE hiring a public adjuster: 1. Does the adjuster have a state-issued public adjuster license? Public adjusters are generally required to be licensed in the state in which the property is located. Make sure the insured gets or sees a copy of the license.
2. Where is the public adjuster based? Even if the public adjuster has a license issued by the state in which the property is located, is the adjuster domiciled in the state? There are state-to-state variations in coverage, if the adjuster does not commonly work in the state in which the property is located, he/she may not know all the laws and requirements.
3. Is the adjuster a member of the National Association of Public Insurance Adjuster (NAPIA)? Although being a member of NAPIA does not guarantee the ethics of the public adjuster, members of the association are required to follow a strict code of ethics.
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