From Brad Barrett

We want to thank Orlando Public Adjuster Brad Barrett for authoring this insurance claim blog. Is there any future for Independent Adjusters? Some insurance companies would want you to believe that you should only see them from behind a glass window in a museum display.  Although we Public Adjusters sometimes have a contentious relationship with them because we represent the policyholder while they are paid by the insurance company, Independent Adjusters still provide a very important service in the claims handling process.

Recently, I experienced the negative impact from insurance companies that refuse to use Independent Adjusters to properly handle insurance claims.  These insurance companies now rely solely upon the evaluation by their “preferred vendors” to assess and estimate all damages. That being said, I was quite amazed when I received a copy of the contractor's estimate (the preferred vendor) for repairs to a residence damaged by fire.

In reviewing this contractor's estimate that was sent to the Insurance Company for payment, I was astonished to see that it included over $10,000 in unnecessary charges; to list a few: $3,600 for a $100 medicine cabinet, wood flooring where there is carpeting, and repairs to a damaged roofing system when this residence has no structural damage.

In my opinion and with no oversight in the field by a licensed adjuster, this only opens the door for some contractors/preferred vendors to overinflate estimates and thereby simply commit insurance fraud.  But, then again I am not an attorney who has to make such a call.

In regards to this claim, the contractor's estimate that was submitted to the carrier would have paid for an IA to properly handle this claim and a couple more.  And this is only one of many claims this contractor is handling. I would enjoy witnessing the look on the faces of the executives for the insurance company when ironically I, as a Public Adjuster, notify them that it appears their preferred vendor is over inflating their estimate for profit.  I am sure my client will be more than willing to accept their offer, if they're willing to issue the payment with no strings attached.

This Insurance Company seems to assume that by not utilizing Independent Adjusters the proverbial grass will grow longer and greener – however, it will undoubtedly cost them more in the long run.  I'm sure you IA's out there are probably laughing and thinking “good—they deserve every bit of it”.  Undoubtedly, if this type of claims practice was lucrative and economical we would see all major insurance companies following the same business model. Besides someone would have to come up with a catchy name to incorporate all the Independent Adjusters into F.A.P.I.A. once they had to retake their adjuster’s exam.

Unfortunately, this is what has evolved over the years. The now almost extinct insurance company staff adjuster who was once an annual salaried employee should be added because at one time insurance companies all had their staff people working claims. They would only use an independent adjusting firm sparingly because of the higher cost. Now, it seems that it’s more cost effective to use contractors instead of independent adjusters. The contractors pay themselves, so I guess the math works out for insurance companies because they can raise rates. The contractors are good because, well, no one really knows what’s in the soup a.k.a “the estimate”. This leaves the boots on the ground public adjuster to be the real advocate for the policyholder. Strange things are happing in this profession, but cash flow and float seems to be the name of the game for these behemoth financial giants.