Utilizing a public adjuster’s expertise is a good idea if:
- The claim is large
- Damage is severe
- Working with insurance companies is stressful
- Poor claims experience in the past
An excellent example is when my relative’s house burnt down in Baltimore, and she had an enormous fire claim to file. Thankfully, she hired a public adjuster in the Baltimore area who assisted them gracefully throughout the entire grueling and emotional process. Some of the positive outcomes one can expect when working with public adjusters, as my relative did, are:
- It will alleviate the stress of navigating the insurance claims process
- More significant outcomes as they will level the playing field with your insurance company
- They typically have extensive experience with managing thousands of claims from a variety of disasters – including fires, windstorms, floods, snow, and ice storms, building collapses, vandalism, and business interruption.
- They usually come with an extensive network of trusted advisors
- Centrally located in the homeowners’ territory
Qualified public adjusters will move quickly with policyholders to develop a claims strategy that will provide them with an equitable settlement as soon as possible. Most likely, a settlement will be significantly higher than the insurance company’s initial settlement offers.
These experts were at her side throughout the entire process, investigating the loss, documenting the damage, and presenting and negotiating her claim. At the same time, she was able to spend the necessary time trying to put her family’s life back together.
How to decide whether to make an insurance claim?
According to US News and World Report, they suggest the following, “Before making the call, read through your policy to get an idea of what is and isn’t covered, what exclusions and limits are included, and what additional coverages you might have that you may have forgotten about. If it’s been a while since you purchased the policy, this would be a good time for a refresher. Make a list of questions as you go through the policy,”.
When deciding whether to file an insurance claim or not, there are several factors to consider, including but not limited to:
- What type of coverage do you have?
- What is your policy’s deductible?
- Was anyone injured?
- Has someone else’s property or vehicle been damaged?
- Is it unsafe to live in your home or drive your car?
- Are the damages above your deductible?
Additionally, it is vital to consider the type of insurance you have, as each policy offers varying coverage. Most policies include coverage for dwellings, other structures, personal property, loss of use, personal liability, and medical payments. Each of these categories has its pros and cons when it comes to filing a claim.
Homeowners may also struggle to decide how many claims they should file within a specific time period. Most insurance companies will look at claim history when deciding future premiums or renewals.
I was fortunate to have an excellent agent to consult with before filing a claim, as she provided valuable insights into how filing a claim affects the rates and overall standing with the insurance company.
It’s worth noting that enhancing your policy with additional endorsements—often referred to as riders—can help tailor it to suit your needs better. For example, my jewelry and off-road vehicles were on riders.
Lastly, if a homeowner stays proactive with home maintenance, it will save one the trouble of filing frequent claims. Regularly inspecting a home for potential issues and addressing them promptly prevents minor problems from becoming major headaches and thus preserves the insurance for true emergencies when it is needed most.
Pros and cons of filing a homeowners insurance claim
As I have grown older and maybe a little wiser, I have had the privilege of seeing certain things in life “play out.” For example, I have had to file claims on my homeowner’s insurance at different points in my life with the following issues:
- The master bath shower leaked into the ceiling of the lower level
- Trees fell on my roof after a storm
- I lost my original engagement ring
- My new engagement ring and my great-grandmother’s antique, irreplaceable engagement ring were stolen on a work trip to Las Vegas
Thankfully, these were not large claims, as I would have definitely hired a public adjuster, one who would work for me, not the insurance company. I had a good working relationship with my insurance agent, so she helped the process, but she did have an attitude with me when I made the second jewelry claim as she couldn’t believe that I had now lost two sets of engagement rings; the first from my ex-husband and the second, I designed with my jeweler. My rates went up, and my agent retired.
The pros of making the claims gave us the financial means to make repairs or replace items, but in the long run, as a con, it raised our rates. Which kind of stunk since we were good-standing clients who had only made four claims over a twenty-five-year period. It seemed a little precarious, so I decided to work with public adjusters on another, more significant claim, and it was a positive experience.
Pros of Filing a Homeowners Insurance Claim
- Financial Security
- Peace of Mind
- Coverage for Personal Belongings
- Temporary Living Expenses
- Liability Protection
- Mitigating Legal Costs
- Covers Natural Disasters
- Added Endorsements
Cons of Filing a Homeowners Insurance Claim
- Deductibles Apply
- Potential Premium Increase
- Claim Denials
- Loss of Discounts
- Risk of Policy Non-Renewal
- Claim Documentation and Process
Is using a public adjuster a good idea?
Seeking advice from professionals, specifically a public adjuster, can provide a detailed roadmap for navigating the complex world of homeowners insurance, ensuring that informed decisions are made every step of the way.
By the way, after making a lost item claim for my engagement ring, about three years later, I found it. Guess where it was all that time? In my silverware drawer – it fell off while I was doing the dishes!