How Much Does a Public Adjuster Cost?
People hire public adjusters because they streamline and simplify the insurance claim process. They are also trained to negotiate with insurance companies as well as provide valuable information to their clients throughout the entire claim process.
However, the most important reason why people hire public adjusters is that they trust them. The interests of an average public adjuster is almost always aligned with those of their clients, and this is because public adjusters charge commissions instead of fixed fees.
So the more money their clients receive in damages, the more money public adjusters are able to make.
But just how much money do public adjusters make, and more importantly, what’s their standard commission rate? If you’re asking these kinds of questions then the following information will tell you what you need to know.
How Public Adjusters Charge Their Fees
Public adjusters calculate their fees based on a percentage of their client’s total claim. This payment scheme incentivizes public adjusters to do their jobs to the best of their abilities.
However, some public adjusters may also charge other fees or extra commissions depending on the nature of the claim and the circumstances involved.
For example, if the claim is expected to last for months, the adjuster may charge a higher commission or he may ask his client to pay for certain miscellaneous costs.
Additionally, if the claim involves legal or criminal considerations then the public adjuster may require his client to hire a legal professional before the claim process can proceed. They may also charge additional fees to cover the cost of certain legal documents and services.
Finally, in situations where the damages to the property are unclear, public adjusters may ask their clients to hire third-party experts to act as consultants. This doesn’t happen often but when it does, you may need to pay their fees on top of the commissions that you’re paying to your public adjuster.
So the important takeaway here is that public adjusters only charge commissions, but they may also ask you to pay for other services in order to help improve your chances of getting a favorable settlement from your insurance provider.
If your insurance claim doesn’t have any complications then you will only need to worry about the commission. However, if there are other issues or problems involved then be prepared to pay for miscellaneous and extraneous costs.
Standard Commission for a Public Adjuster’s Services?
A public adjuster’s commission is determined by the amount of money that his client may receive from a successful claim.
For example, a public adjuster may charge a 20% commission for a $20,000 to $30,000 insurance claim, but he may also charge a 10% commission for a $100,000 insurance claim. So as a general rule, the large the potential claim settlement is, the smaller the public adjuster’s commission rate.
However, a claim’s total value is not the only factor that determines a public adjuster’s commission. Time, legal issues and various other concerns may also increase or decrease a public adjuster’s commission rate.
For example, if you want your public adjuster to complete your insurance claim within the week then he may charge you a higher commission rate because of the time factor. He may also charge a higher commission rate if you are demanding a higher claim settlement than what he recommends.
Also, some public adjusters may also charge higher rates based on his or her own specialization. For example if your claim involves fire damages and your public adjuster specializes in fire/smoke related claims then he may charge you more money for his services.
The idea is that because he is an expert in these types of claims he will be able to negotiate a higher settlement from your insurance company.
Finally, you should also ask your public adjuster about their commission rates. Before they’ll give you an answer, however, they will first ask you about your claim and how much you expect to receive from your insurance company.
If the total amount is high and there are no contentious problems involved then you may be able to negotiate for a lower commission rate.
Do Public Adjusters Have Hidden Fees?
No, most public adjusters only charge commissions for their services. The only time they may ask you to pay a fee is when they need funds to process a document, hire a third party specialist or purchase materials which are related to the claims process. However, the public adjuster doesn’t pocket these fees but uses them to speed up the insurance claim process.
Moreover, there are also some public adjusters who may request their clients to pay them a fee if they want to set up a consultation. However, these fees are immediately removed if the client decides to hire the public adjuster.
So if you find a public adjuster who charges a consultation fee, ask them if they are willing to refund said fee if you are prepared to hire their services.
Are Public Adjusters Willing to Negotiate on How Much Commission They Receive?
It really depends on the public adjuster in question. Larger organizations are very likely to have fixed commission rates for their services, while smaller ones are more likely to negotiate with their clients.
However, a lot of factors affect each public adjuster’s commissions, and they are very likely to give you a better deal once they learn all the details of your claim.
The best way to negotiate with a public adjuster is to simply go to their site, look up their commission rates and contact them about your claim. Likewise, you can also contact them directly and inform them about the damages to your home and how much money you want to get from your claim.
They may or may not be willing to negotiate for a lower commission but knowing how public adjusters calculate the cost for their services will help you find one who can help you with your particular claim.
If your home or your business has suffered a loss, please call our experts at (305) 956-3666 or visit www.piccfla.com for a FREE claim analysis with PICC.