Public Adjusters: They focus on assessing damage, not on legal interpretation.
Law Firms: Attorneys are legally and ethically bound to act solely in your best interest. We represent you—not the insurance company. Our legal team is trained to analyze and interpret contracts, ensuring that every aspect of your policy—coverage, exclusions, endorsements, and conditions—is thoroughly examined and applied to your claim.
Why Using a Public Adjuster Can Be a Mistake When Pursuing the Highest Payout from an Insurer
While public adjusters (also called public adjusters) play a role in helping policyholders navigate insurance claims, there are technical and strategic reasons why relying solely on them may not be the most effective approach if your goal is to secure the highest possible payout from an insurance company. Here’s a detailed breakdown:
1. Limited Authority and Legal Expertise
Public Adjuster’s Scope: Public adjusters are licensed professionals who assess damage, document losses, and negotiate with insurers on behalf of policyholders. However, their authority is confined to claims adjustment, and they cannot:
Legal Advocacy: Insurance policies are legally binding contracts. Insurers often exploit ambiguities in policy language, exclusions, or endorsements to minimize payouts. Only a law firm has the legal expertise to interpret and enforce policy terms to the fullest extent. Attorneys can escalate disputes beyond negotiation by pursuing legal remedies, including bad faith claims, which public adjusters cannot handle.
2. Insufficient Leverage with Insurers
No Legal Recourse: Public adjusters lack the ability to take legal action if an insurer refuses to settle fairly. This limits their leverage during negotiations. Insurers may be less inclined to offer maximum payouts when they know the policyholder’s representative cannot escalate the dispute to court.
Limited Power to Challenge Denials: If the insurer denies a claim or asserts a policy exclusion, a public adjuster can only appeal within the insurer’s internal processes. An attorney, however, can challenge denials through litigation, arbitration, or regulatory complaints.
3. Compensation Structure May Not Align with Maximum Recovery
Percentage-Based Fees: Public adjusters are typically paid a percentage of the settlement amount (often 10%). While this incentivizes them to negotiate for a higher payout, it can also lead to:
4. Limited Understanding of Policy Ambiguities
Technical Policy Language: Insurance policies often contain nuanced and ambiguous language, which insurers interpret to their benefit. For example:
Legal Interpretation: Attorneys are trained to identify and exploit ambiguities in favor of the policyholder. They can argue for broader interpretations of policy language, ensuring that the insurer pays the maximum amount allowed under the contract.
5. Lack of Strategic Coordination Beyond the Claim
Focus on Claims Adjustment Only: Public adjusters concentrate solely on documenting and negotiating the claim. They typically do not:
Holistic Approach from Law Firms: A law firm offers a broader scope of services, including:
6. Vulnerability to Insurer Tactics
Pressure from Insurers: Insurers often exploit gaps in a public adjuster’s authority or knowledge by:
Law Firm’s Advantage: With legal backing, insurers face greater pressure to settle fairly. Attorneys can threaten and pursue litigation, regulatory complaints, or arbitration, increasing the insurer’s liability and encouraging higher payouts.
7. Complex Claims Demand Legal Expertise
Disaster-Related Claims: After large-scale events like wildfires, insurers may employ stricter scrutiny or interpret policies more conservatively to limit losses. Public adjusters may lack the ability to navigate the heightened complexities of disaster-related claims.
Legal Expertise Is Critical: A law firm can analyze nuanced issues such as
8. Regulatory Knowledge and Enforcement
State-Specific Laws: In states like California, insurers are subject to strict regulations under the California Fair Claims Settlement Practices Act. Public adjusters may not fully understand or leverage these regulations to hold insurers accountable.
Legal Enforcement: Attorneys can file complaints with state insurance regulators or pursue legal remedies if insurers violate claims-handling laws or act in bad faith.
Conclusion
While public adjusters provide valuable services for straightforward claims, they lack the legal authority, strategic leverage, and comprehensive expertise needed to secure the highest possible payout in complex or contested cases. A law firm offers a superior approach by:
By involving a law firm, homeowners can ensure that their insurance company fulfills its obligations, providing the compensation needed to rebuild and recover fully.
At Greene Law PC, we’re dedicated to making sure your voice is heard, your losses are fully acknowledged, and your policy delivers everything it promises. We don’t let insurers cut corners or take advantage of your vulnerability. Instead, we take charge of your claim, empowering you with knowledge, guidance, and relentless advocacy.
As proven professionals with 40 years of experience, we are here to guide you through the complex legal process, diligently protect your rights and assure the best possible outcome for your case.