“Filing your insurance claim after a wildfire is emotionally draining and should be done sooner rather than later to ensure your place in line is held,” says Los Angeles-based Karl Susman, an insurance broker for over 30 years.

He worries that a great deal of false and misleading advice on how to deal with claims resulting from California wildfires could result in substantial delays in claims being paid. Here, he answers questions that policy holders often ask and addresses how to deal with some scenarios.

I have to file a claim. Do I need a lawyer right away?

Start with the assumption that your insurance company is going to do right by you. Do not rush out and retain a lawyer. If it turns out that they don’t, then ask for a claims manager or supervisor.

If that is still not satisfactory and you feel the insurer is not being reasonable, then it is possible to retain a public adjuster (more on that later). If that still is not satisfactory, then and only then would you want to hire an attorney.

“Hiring an attorney prematurely or unnecessarily for the typical loss slows down the process of resolving your claim and can add considerable expense, as lawyers will typically be paid a percentage of the settlement,” Susman notes.

Also, for the typical storm/fire-related loss, hiring an attorney takes your claim to a completely different insurance company department. There are fewer adjusters who are trained to deal with attorneys. This will cause a delay — sometimes lasting months and even years — with no benefit to the policyholder.

Would it help me to file a complaint against my insurer about the valuation of my claim with the office of my state’s insurance commissioner?

“Generally, it is a zero-sum game,” Susman says. The insurance commissioner’s office will send a letter to the insurance company that essentially says, “Please justify your actions with this customer’s complaint.”

The insurance company will answer the complaint with the same documents they gave to their customer.

“Filing a complaint seldom accomplishes anything, but again, we are talking about the average claim. The exceptional, bad-faith case is a different story,” Susman points out.

Is it worth it to hire a public adjuster? I hear they have a bad rap.

The typical cartoon-character public adjuster shows up at your business or home after it has been destroyed, quickly signs you up and takes a piece of the insurance settlement, leaving you with much less than your own insurance company would have offered you.

“Propaganda,” says Susman. “Just as all lawyers aren’t crooks, there are good and some very poor public adjusters. In my experience, the main reason people are often dissatisfied with having retained a public adjuster is that the expectations of what a PA can do are not often met, and the settlement process can be slowed down considerably. I have seen instances where it took years to resolve a claim, and the insured got nothing different than what the company first offered.”

Insurance companies are not trying to avoid paying claims.

“The public often thinks hiring a public adjuster will in some way force the insurance company to do more,” Susman says. “But that is not how insurance functions. If you can justify the claim, the insurance company will almost always pay it. But they need to justify the payment.”

He recommends, “If you are having trouble getting a claim resolved, put on your claims adjuster hat and ask yourself, ‘If I was the adjuster, what would I need to see in order to pay this additional money?’”

My home business was totally destroyed. I have insurance, so what should I do?

“If you have a total loss like that, I would ask for policy limits,” Susman says. “What often happens is that when people have a total loss, and they realize they didn’t have enough coverage, instead of taking policy limits, they want to fight and get more. It is a zero-sum game, the worst thing to do. The message is simple: If you have a total loss, don’t try to collect more than your policy limits. It is a waste of time and money and will reward you with heartache.”

Some final, important recommendations

– Please, don’t forget that claims adjusters are people. They have good days and bad days just like everyone else. Their job is to hear from folks who are at their worst because something bad has happened. Try to have a little sympathy, a little empathy. Be polite.

– Don’t exaggerate or lie. This can nuke your entire claim.

– Don’t forget that your adjuster gets paid to settle your claim. They want to settle your claim, not reject it. Help them help you.

– Think of technology as your friend when claims people are pulling out their hair with so much to do. Providing good photos and videos to your adjuster will help speed the process.

– Review your insurance needs annually with your agent or broker.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post How to deal with property insurance claims after wildfires appeared first on Dennis Beaver.

In recent months, we have all been witness to the wildfires, tornadoes and floods that have torn through cities and rural areas across our country.

As so many property owners are learning, time does not heal all wounds, especially those inflicted on them by some — not all — insurance companies attempting to avoid or minimize payments through sneaky and dishonest claims-adjusting practices, such as lowballing loss values.

If anyone doubts that statement, then I recommend doing a Google search on: property damage undervalued by claims adjusters.

“Guy,” a longtime reader and claims adjuster for a regional homeowners insurance company, told me in a video chat, “This is a time when the power difference between management and claims people in the field becomes evident. We were told in meetings, ‘If you want to keep your job, write loss reports the way we tell you and to hell with accuracy.’” Guy requested anonymity so he could speak candidly.

He showed me photos of an insured’s damaged home, his original repair estimate and the “revised final estimate” from management. “They are ripping off the insured, and just as soon as these jobs are done, I am out of here,” he said.

What to do if your insurance company isn’t playing by the rules

The question that frustrated property owners often ask is, “What can I do — who should I hire — if my own insurance company is not responsive, or it appears that I am being jerked around? Should I retain an attorney or a public adjuster?”

When you’re faced with this choice, it could very well be one of the most important financial decisions you make when your life is turned upside down.

I ran this important question by Los Angeles-based independent insurance broker Karl Susman, who writes articles for Kiplinger.com and is a CBS News consultant.

Additionally, I spoke with John Petrov, a public adjuster based in Diamond Bar, Calif., who explained the role of a public adjuster (PA).

“All claims adjusters have the same job,” Petrov said. “Those who work for insurance companies try to minimize the payment of claims, while public adjusters work for the person harmed. A PA’s job is to handle your claim correctly and honestly and help you obtain everything you are entitled to, not to cut corners in order to keep the boss happy.”

In my law practice, I’ve known many PAs who worked for large insurance carriers, became disillusioned by shady claims practices, went out on their own and, as I heard repeatedly over the years, “It just felt good, as I was really helping someone for a change.”

Greatest risk you now face: Being pressured into signing a contract

I asked Susman and Petrov: After living through a natural disaster — seeing your home, business, all the things that have meaning in your life just disappear — what is the greatest risk you now face?

Petrov replied, “Allowing yourself to be pressured into signing up with someone who just appears out of thin air, promising to handle the claim.”

He underscored: “That’s how PAs get a bad reputation. Never hire a public adjuster who just shows up and hands you a contract. You are vulnerable.”

Susman agrees: “There may come a time when you will need a PA, but never select one who is looking for you. Stay local, as you should for attorneys, and referrals from trusted sources are important.

“Remember, unlike your insurance company’s claims adjuster, who is paid by them, you are giving a percentage of the money your insurance company pays on the claim to the PA. Take your time and research that person and their company before signing.”

What to keep in mind if you have a claim

Susman and Petrov provided these tips to try to make the process of filing a home insurance claim less intimidating:

Promptly file the claim with your insurance company. Policies contain time limits for filing claims.

While it is certainly appropriate to schedule a consultation with an attorney, generally there is no reason to run up attorney fees at the beginning of the claims process. “However, if you are asked to give a statement under oath, hire an attorney for that,” Petrov stressed.

Allow the claims process to proceed normally. If it appears that, even after speaking with a claims supervisor, you’ve hit a brick wall, then it is time to speak with a PA.

Take your time when considering offers

With large losses, clients tend to feel a sense of urgency. They need money as soon as possible to begin putting their lives back together.

Therefore, beware of rushed, lowball offers and pressure to accept them, especially after a natural disaster.

That is what often creates the need to hire a PA. And, yes, you will pay their fee (which varies by state), but the net result could be much better.

If you want to learn more about this and other insurance topics, both Petrov’s website and Susman’s website have highly useful information.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Should You Hire a Public Adjuster for Your Insurance Claim? appeared first on Dennis Beaver.