What is a public adjuster?
People who don’t have knowledge of the construction industry may not know what a public adjuster is. Some might think that it’s just another name for an insurance agent or an insurance representative. Those individuals would be wrong in their assumptions.
The public adjuster industry is completely different from the insurance agency industry especially when it comes to job responsibilities and job requirements. A public adjuster handles claims made by policyholders with regard to the damage done to property due to disasters such as storms, floods, or other events which result in loss or damage of a home or a building.
A policyholder files a claim with his/her insurance company regarding the loss, and the insurer then passes the case on to its public adjusting department where a trained staff is known as “adjusters” work to assess the damage and negotiate a settlement with the claimant.
What is the process of becoming a public adjuster?
In order to become a public adjuster, you must first meet certain requirements. Aspiring public adjusters must be licensed in the state where they will practice and also possess a surety bond. A surety bond is a type of insurance policy that guarantees that the principal (in this case, the public adjuster) will abide by the terms of the contract. The bond amount varies depending on the state, but it’s usually in the range of $10,000 – $25,000.
The process of becoming a public adjuster usually involves passing an exam administered by either your state’s department of insurance or by The National Association of Public Insurance Adjusters (NAPIA). A surety bond can usually be purchased from companies specializing in surety bonding or insurance. It’s possible to get bonded without attending school, but it will take more time and resources for surety-bond providers to review your application.
What licenses are needed to become a public adjuster?
In order to become a public adjuster, you’ll need to have one of the surety bonds required by your state department of insurance or licensing authority. You also need to take and pass the Public Adjuster Licensing Examination which is administered by either your state’s board of insurance or NAPIA.
Finally, you must submit an application for licensure with your state government along with payment of any necessary fees. If approved, you will receive a license to practice as a public adjuster in that particular state.
What are other qualities needed?
A surety bond merely indicates that the principal has enough knowledge to make sure he/she follows proper procedures while performing their assigned tasks. A surety provider is sure that this happens because they’ll be sure to hold the principal accountable.
Public adjusters must also have certain qualities or skills which will allow them to perform their jobs successfully and earn their clients’ trust. For example, they should possess strong interpersonal, communications, and negotiation skills since these are needed in order for them to settle claims with policyholders on behalf of insurance companies.
They must also be knowledgeable about property valuation. They need to know exactly how much damage has been done to a home or building before making any recommendations to an insurer on whether or not it makes more sense for the company to pay out the claim in full rather than try and repair damages.
Public adjusters can make sure that their clients receive the right amount of compensation by using various techniques such as experience-based estimations, Xactimate software, or forensic accounting
What is a Public Adjuster Surety Bond?
A surety bond is an agreement by a surety (insurance company) to “indemnify” (compensate) the beneficiary (the insured) for any financial loss, up to the total amount of the bond, which results from the actions or inactions of the principal (licensed public adjuster).
The surety bond puts into action an insurance policy that addresses non-performance on behalf of licensed Public Adjusters. This surety bond is separate and distinct from professional liability coverage which can be obtained by Public Adjusters as part of their public adjusting license.
