5 Challenges Property Owners Deal With When They Don’t Work With A Public Adjuster

January 21, 2019
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A group of firefighters are putting out a fire on property owners land

When you have lost your property due to a disaster, the devastation can be unbearable. As property owners, this is a complete nightmare You probably are thankful that you have homeowner’s insurance to cover your losses. Unfortunately, getting started with the claims process may just be the beginning of even more problems. It’s not enough that you have to deal with the emotional, physical, and financial issues of losing a property to a disaster. Now you may have to deal with these five challenges if you don’t work with a public adjuster after a loss.

1. Demand Surge

Demand surge refers to the sharp increase in demand for labor and materials after a natural disaster. When multiple properties need rebuilding and renovation, contractors and material suppliers may raise prices based on supply and demand. Unfortunately, the check from your insurance company doesn’t go up to match higher prices. So you’re left short on having enough to pay to rebuild your home. Public adjusters are trained and qualified to negotiate lower prices on labor and materials with contractors and suppliers in order to make your claims payout money go further.

2. A Long Wait

It can take a long time between the actual disaster event and the time you see your first check from the insurance company. That’s because the insurance company has so much red tape involved with each claim. They’ll want to send out a company rep to assess the damage, which also may take a long time. As a property owner, when you hire a public adjuster they can negotiate a claims advance payout for you that circumvents all that red tape. 

3. Depreciation Structure

In determining payout amounts on personal property, the insurance company creates a depreciation structure that calculates depreciated values on each of your possessions. As property owners, you have little control over this structure and may have to take what they’re willing to give. However, public adjusters are experienced with challenging the depreciation structure and are often successful with having it modified in the property owner’s favor.

4. Slow Communication

Another big challenge that property owners face after a disaster is slow communication. For example, it can take far too long just to hear back on how much you’ll be entitled to if you have ALE or additional living expenses coverage. Meanwhile, you need to arrange someplace for your family to live during the rebuild, not knowing how much rent you’ll be reimbursed for. Your public adjuster can be instrumental in getting answers for you from the insurance company in hours; not weeks.

5. Emotional Distress

Finally, you and your family’s emotional distress at sudden homelessness can be devastating, especially since it will soon be clear that your insurance company is working to pay out as little as they have to. Simply having a public adjuster on your side to stand up for your rights is a huge emotional support.

You can’t avoid certain challenges after property destruction in a disaster. But you can lessen the burden by hiring a public adjuster. Be responsible property owners, get what you are owed. After such a disastrous event, you’ll appreciate having someone on your side who is willing to fight for you.