PUBLIC ADJUSTERS

WHAT IS A PUBLIC ADJUSTER?

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• Decide whether you can settle the claim on

your own. You might want to consider hiring a

public adjuster (or a private attorney versed in

handling insurance claims) if the claim is large or

complicated, or if you are unable to negotiate a

settlement with the insurance company.

• Make sure the public adjuster is licensed in North

Carolina! Public adjusters must be licensed in order

to conduct business in North Carolina. Ask to see

the public adjuster’s license, and write down his/

her full name and license number. You can check

license status by calling the N.C. Department of

Insurance at 855-408-1212.

• Find out the public adjuster’s permanent address.

Sometimes (especially after large-scale natural

disasters), out-of-state public adjusters will travel

to an aected area, where there may be many

consumers needing prompt assistance with their

insurance claims. If you choose to use an out-

of-state public adjuster, conrm that he/she is

licensed by the North Carolina Department of

Insurance.

• Make sure you understand the public adjuster’s fee.

Public adjusters’ fees are usually a percentage of

the insurance settlement. For example, if you sign a

contract that species a 10 percent fee, and if your

nal insurance settlement is $50,000, then you

would owe the public adjuster $5,000. If the claim

is due to a catastrophic incident, the maximum fee

allowed under North Carolina General Statutes is

10 percent of the settlement amount.

• Ask the public adjuster for references in your local

area. In addition to checking references, you can

ask the North Carolina Department of Insurance

about his/her complaint history, and also check

with your local Better Business Bureau.

• Consider meeting with two or more public

adjusters before you decide which one to hire. Do

not allow a public adjuster to pressure you into

signing a contract if you are not ready to doso.

• Do not pay any money up-front, because the

amount you will pay him/her will be based on a

percentage of your total insurance settlment.

• Request information on how checks are issued by

the insurance company and make sure checks are

payable to you and the public adjuster.

• Ask the public adjuster how long it will take to

settle your claim. Obviously, larger and more

complicated claims can take longer than smaller

claims. If you decide to hire a public adjuster, ask

the adjuster to keep you updated on the status of

your claim.

When you le a property and casualty insurance claim (auto or homeowners, for example), the insurance company will

probably assign an adjuster to review the claim and help determine the dollar amount of the loss. This adjuster works

on behalf of the insurance company. However, there is another type of adjuster known as a public adjuster. A public

adjuster is hired by and works for the person ling the claim to help with the ling, negotiation, and settlement of the

claim. Public adjusters can be helpful with large, complicated claims in particular.

The public adjuster charges a fee for his or her services, often a percentage of the nal settlement amount. If you enter

into a contract with a public adjuster, he or she becomes your representative in dealing with the insurance company.

Therefore, you should provide your insurance company with the public adjuster’s name and contact information,

and the public adjuster should notify the insurance company that he or she will be representing you. From that point

forward, the insurance company should communicate directly with the public adjuster instead of with you. The

insurance company has the right to request a copy of your contract with the public adjuster.

A public adjuster can manage your entire claim process. This includes inspection of the loss site, preparing a list of

all lost property, calculating a dollar value for your losses, reviewing your policy provisions, hiring contractors to

make repairs, inspecting the repairs as they are performed, and handling claim paperwork required by the insurance

company.

BEFORE HIRING A PUBLIC ADJUSTER

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• Carefully read any contract that you are given by

the public adjuster and DO NOT SIGN until you

understand and agree to the contract terms. Be

sure you understand:

— The total fee (or percentage) that you will owe.

— When your payment(s) to the public adjuster

will be due.

— Whether you can cancel the contract, and if

there would be a penalty for doing so.

• You have the right to rescind the contract after it

has been signed. To do so, the rescission must be

in writing and mailed or delivered to the public

adjuster within three business days of signing of

the contract, to the address in the contract.

• If your insurance company oers to pay the full

amount of your policy limits within 72 hours

after the date on which you reported your loss

to the company, then the public adjuster cannot

receive a commission based on a percentage of

the total settlement amount. Instead, he/she may

charge a reasonable fee based on his/her time and

expenses. He/she must also notify you that the

amount paid by your insurance company might

not be increased.

CONSUMER ALERT!

Be on the lookout for scams! Especially after a large-scale disaster, when public adjusters can be in great

demand, some dishonest and unqualied individuals might pose as public adjusters, pressure you to sign an

unfavorable contract, or try to take advantage of you in other ways.

IF YOU HAVE QUESTIONS, THE CONSUMER SERVICES DIVISION OF THE DEPARTMENT OF INSURANCE IS HERE TO HELP.

North Carolina Department of Insurance

1201 Mail Service Center

Raleigh, NC 27699-1201

You can nd additional information as well as a downloadable copy of our Request for Assistance form on the

NCDOI Web site.

Fax: 919-733-0085Toll free: 855-408-1212

NC Department of Insurance | Mike Causey, Commissioner | www.ncdoi.com

Outiside of NC: 919-807-6750