If you are a public adjuster or roofing contractor, you may help multiple policyholders – in same area, with the same carrier – after a natural disaster. If your policyholder clients are getting the same line items denied in claim after claim – or inconsistent payments/denials regarding the same line items – consider filing Mass Actions against the individual carriers.
Advantages of Mass Actions
My colleague, Larry Bache, and I are currently involved in several Mass Actions. In those cases, all similar claims against each carrier (Allstate, Farm Bureau, Farmers, State Farm, USAA, etc.) are combined into a single Complaint. While each claim can go forward and be considered on its own merits in a Mass Action, clients also gain the advantages associated with Aggregate Litigation (judicial economy, economies of scale on expenses, greater leverage against carriers with more resources than policyholders, etc.)
Assignment of Claims
Public adjusters and/or roofing contractors working in states that allow assignments of claims may find even more benefits to a Mass Action of this nature. (Some states allow assignments of insurance claims and some states don’t, so consult a legal professional in your area before beginning that practice.) When utilizing a proper assignment in these states, the public adjuster/contractor becomes the client for all the assigned claims, and the Mass Action benefits become even more pronounced.
Evening the Playing Field
Let’s face it, insurance carriers almost always have more resources and leverage greater than the policyholder involved in any disputed property damage claim. If you are assisting multiple policyholders with similar line item denials against the same carrier, you may owe it to the policyholder and yourself to investigate whether a Mass Action is the best way to pursue those claims.