Most people think of public insurance adjusters as only working with insurance companies, but this isn't the case at all. Public adjusters work with homeowners, insurance agencies, and contractors to ensure that the best care is given. Here are some ways in which a public adjuster can help in negotiating directly with a contractor.
Why Negotiate With a Contractor?
If your insurance company is already covering the cost of your repairs, you may be wondering why it's even necessary to negotiate with a contractor. There are two important reasons:
- Overly expensive claims can increase the amount of your premiums. After all, having to pay out a large amount on your home often means you're a higher risk.
- Overly expensive claims can max out your coverage. If you have another incident later on, you may be out of coverage because you've already paid.
Of course, you could actually exceed your coverage — even if your insurance is going to approve your claim.
How Does a Public Adjuster Help?
Public adjusters are skilled in negotiating with contractors. Not only do they have the experience and expertise necessary to price things out themselves, but they work in specific areas and know the other contracting options available. When insurance companies are hesitant to pay out, public adjusters assess damage from a third-party position, and they work with contractors to reduce the amount that the insurance company will pay.
Public adjusters can also help you find the contractors that are best suited for you and your home. Even though a home insurance company may have their preferred contractors, most homeowners aren't going to be required to use that contractor. Instead, they may be able to save money by using one that the public adjuster finds.
Can a Contractor Help With Negotiations?
It's important to note that in most situations, a contractor is not allowed to negotiate with an insurance company directly. It only makes sense — if contractors and insurance companies negotiated on their own, then there wouldn't be a neutral third party, and it might not work out best for the customer (you).
Because of that, contractors cannot help much when there is a dispute regarding the pricing. If a contractor submits a bid and the settlement offered by the insurance company is too low, an adjuster is going to need to come in and either get a lower bid or find a way to increase the insurance settlement. Similarly, public adjusters cannot act as contractors either — that is also outside of their role.
What if the Price Goes Up?
There can be situations in which the price goes up after negotiations. This often happens if the contractor finds further damage that has to be repaired, even after the insurance company's settlement has already come through. On the contractor's end, these additional costs may not have been fully anticipated.
On the insurance company's end, they will have already paid out and closed the claim. But this is not a rare situation. It happens frequently when there's been extensive damage to a home. In this situation, a public adjuster can help in negotiating with both parties.
As you can see, a public adjuster helps everyone involved, by operating as a third-party mediator and trying to find the best and most objectively correct solution. Not only are they skilled in the valuation of repairs, but as a neutral party, they can present this information to both contractors and insurance companies to get the ideal payout for the homeowner. If you're currently in a situation where you need an adjuster, contact The People's Choice Public Adjuster today.