What is the role of a public adjuster?
A public adjuster may be unfamiliar to those unfamiliar with the building business. Some people may mistake it for another term for an insurance agent or representative. Those people would be mistaken in their assumptions.
When it comes to employment obligations and criteria, the public adjuster profession is vastly different from the insurance agency industry. A public adjuster is a person that processes claims from policyholders for property damage caused by disasters such as hurricanes, floods, or other calamities that result in the loss or damage of a home or a building.
A policyholder submits a loss claim with his or her insurance company, which then sends the case to its public adjusting department, where a team of qualified “adjusters” assesses the damage and negotiates payment with the claimant.
How does one go about becoming a public adjuster?
To work as a public adjuster, you must first achieve certain qualifications. Aspiring public adjusters must be licensed and have a surety bond in the state where they intend to practice. A surety bond is an insurance policy that ensures the principal (in this example, the public adjuster) will follow the contract’s requirements. The amount of the bond varies by state, but it’s normally between $10,000 and $25,000.
Passing an exam conducted by either your state’s insurance department or The National Association of Public Insurance Adjusters is usually required to become a public adjuster (NAPIA). Companies that specialize in surety bonding or insurance may usually provide you with a surety bond. It is possible to get bonded without going to school, but surety-bond providers will require more time and resources to analyze your application.
What certifications are required to work as a public adjuster?
You’ll need one of the surety bonds required by your state department of insurance or licensing authority to work as a public adjuster. In addition, you must pass the Public Adjuster Licensing Examination, which is given by your state’s insurance board or NAPIA.
Finally, you must file an application for a license with your state government and pay any costs that are required. If you are authorized, you will be given a license to work as a public adjuster in that state.
What other qualities are required?
A surety bond simply states that the principal has sufficient knowledge to ensure that he or she follows proper processes while carrying out their assigned duties. A surety provider ensures that this occurs by ensuring that the principal is held accountable.
Public adjusters must also possess certain attributes or skills that will enable them to properly complete their tasks and acquire the trust of their clients. They should, for example, have great interpersonal, communication, and negotiation skills because they will be settling claims with policyholders on behalf of insurance firms.
They should also be familiar with property appraisals. Before making any recommendations to an insurer about whether it makes more sense for the company to pay out the claim in full rather than try to restore losses, they need to know exactly how much damage has been done to a property or structure.
Using approaches such as experience-based estimations, Xactimate software, or forensic accounting, public adjusters can ensure that their clients obtain the proper amount of compensation.
What is a Surety Bond for a Public Adjuster?
A surety bond is an agreement between a surety (insurance company) and the beneficiary (the insured) to “indemnify” (compensate) the beneficiary (the insured) for any financial damage resulting from the principal’s actions or inactions, up to the total amount of the bond (licensed public adjuster).
On behalf of licensed Public Adjusters, the surety bond activates an insurance policy that covers non-performance. This surety bond is unique from the professional liability coverage that Public Adjusters might receive as part of their public adjusting license.