Public Adjusters, Part Two
Some of the interesting changes in the public adjuster trade are the increased requirements to obtain and maintain a license. This past legislative year, the Florida Association of Public Insurance Adjusters (FAPIA) lobbied for and obtained an apprentice period as well as specific continuing education requirements for public insurance adjusters. Some may be surprised that FAPIA pushed for this legislation, but there was an obvious need for it.
In 2004, there were several hundred licensed public adjusters in Florida before Hurricane Charley set off a wave of storms, culminating with Hurricane Wilma in 2005. The number of licensed public adjusters swelled to over three thousand in Florida. While there was and is a need for policyholders to have experienced professionals assist them to establish the proper value of any significant claim, many of the new public adjusters had little experience, understanding, or training.
All one had to do to obtain a license was pass an open-book online test. I have met preachers, car salesmen, fitness trainers, and salespeople who became licensed public adjusters after the first storm of 2004. The public suffers when inexperienced and inadequately trained people represent themselves as "professionals licensed by the state" to help consumers. I do not begrudge anybody the opportunity to make a living in this field, but good adjusters have a tremendous amount of training gained over years of practice. A thorough understanding of policy language, rules, laws, industry practices, construction estimating, building code knowledge, theories of coverage, financial issues, and adjustment techniques are learned through years of practice and diligent study. Adjusting claims is serious business with serious consequences if not done right.
Could you imagine letting doctors practice brain surgery the day after they graduate from medical school? This is essentially what Florida allowed, with some consumers unknowingly hiring "first time" adjusters. Accordingly, except for a minority of public adjusters that did not want any fee caps, the Florida public adjuster legislation was supported by FAPIA, NAPIA, the insurance industry, and the Citizens Property Insurance Claims Task Force. (Of special note, the Citizens Task Force, which was formed to suggest legislation regarding Citizens' handling of claims, did not make one such suggestion, but was instead used by the insurance industry to make laws regarding other aspects of insurance.) My suggestion for those seeking to hire public adjusters is to look for the following:
- Reputation
- Membership in FAPIA and NAPIA
- Experience with the policyholder's type of claim
- Sufficient manpower
- Price
I include price because you usually get what you pay for. Public adjusters typically charge ten percent (10%). Many will charge less, but they may not work the claim as diligently and make up the lost value of one claim by settling in volume. Ask for references. The lowest priced adjuster is often not the best. The highest may not be the best either. Look for experience, reputation, and past results so you have a good sense of trust with the person you select as your representative.
Greetings Mr. Merlin.
Most of what you say here could be said for any profession and, like you said above, who would want a medical doctor operating on them one day following graduation from medical school? We all have to start somewhere though and. . . . your message is clear and can be applied to any profession - WE ALL HAVE TO START SOMEWHERE.
Take care. :)
It's interesting that public adjusters will have to go through a years "apprenticeship" at the behest of the industry, but staff or independent adjusters will have no such hurdle to jump trying to break into this profession. It's seems they think that if an IA is good enough to be contracted by an ins. co., they're good enough. Why don't PA firms deserve the same level of credibility?
The public suffers when inexperienced and inadequately trained people represent themselves as “professionals licensed by the state” to help consumers. so we like your credibilty.......
Mr.Merlin, I respect and truly understand credibility but again Morgan and Morgan, AARP, Goldman Sachs, Paramount, all started somewhere. I live in Orlando, FL and I have met PA's who will not give you the time of day to help you learn the industry. If we have to battle with IA's, and Insurance carriers as well as our fellow PA colleagues then how can the new PA's coming in acquire the adequate expertise to handle a claim respectively. The reason I did not sit to be an IA is because the carriers lock new applicants out. We are in a time of entrepreneurship which means when there is no one to hire or (help you) the strongest will find a way. For all long time PA's who have had rookies ask for assistance and did not provide it WATCH OUT survival always wins.