Independent Adjusters: What You Need to Know

Independent adjusters are professionals who handle damage claims on behalf of insurance companies when there has been an accident and the insurance company needs to determine how much they will pay out in order to settle the claim quickly.

If you’ve just been involved in an accident and are waiting to hear back from your insurance company, there are several things you should know about independent adjusters. Here’s what you need to know about independent adjusters before they contact you.

Why Do You Need an Independent Adjuster?

The terms adjuster and insurance adjuster can cause confusion among non-industry readers. Simply put, an independent insurance adjuster is a person who investigates and evaluates an insurance claim for personal or commercial property.

This investigation is conducted in order to provide an objective appraisal of property damages that will be presented as evidence in court when submitting a final report of loss to your insurer. An independent adjuster works on behalf of you, not your insurance company.

Most states require all claims to go through an independent adjuster before going to court. That way, you know you’re getting a fair estimate of damages before heading into litigation with your insurer.

Is Insurance Fraud Something We Should Worry About?

The Insurance Information Institute states that insurance fraud is a big issue in our country today. While only 2% of auto insurance claims are fraudulent, it can cost up to $40 billion each year.

Because insurance adjusters are in charge of investigating and paying these claims, they have been trained to spot fraud when they see it. Here’s what you need to know about independent adjusters and their role in fighting fraud.

Fraudulent insurance claims cost innocent Americans billions of dollars every year—money that could be used for healthcare or education instead. Fraudulent car accident claims alone can add thousands of dollars to your premiums over time.

Insurance companies must invest heavily in anti-fraud measures as a result, hiring specialized investigators called independent adjusters who review each claim submitted for accuracy and legitimacy.

How Do I Hire an Independent Adjuster?

Hiring an independent adjuster can be a tricky process for anyone who has never dealt with their services before. The point of hiring an independent adjuster is to get help assessing your claims, so you should always keep that in mind when deciding how and why to hire one.

As long as you do your research and understand what they do, there’s no reason why hiring an independent adjuster should be anything but helpful. If you want to know more about what they do or how they work, read on!

How Much Do I Pay an Independent Adjuster?

You can expect to pay anywhere from 20% to 50% of your insurance claim’s final settlement value. The amount you pay an independent adjuster depends on a number of factors, including your deductible and type of policy.

More specifically, independent adjuster fees typically fall within these ranges $200–$400 for a $1,000 claim; $400–$800 for a $2,000 claim; $600–$1,500 for a $5,000 claim; and so forth. A $25,000 claim would likely cost you between $3,750 and $8,250.

Again, it all depends on your deductible and type of policy. For example, if you have a high-deductible health plan (HDHP) with a relatively low monthly premium (e.g., around $100), then paying an independent adjuster 25% of your claim might not be too much to ask for peace of mind.

Are Independent Adjusters Necessary?

Insurance claims sometimes generate very complex issues. When a claim becomes too complicated for an adjuster working for an insurance company, it’s assigned to a third party known as an independent adjuster.

These individuals may specialize in various types of insurance, including homeowner’s or car insurance. However, they all provide independent assessments of how much damage was caused by certain events such as fires and floods.

An independent adjuster is not affiliated with any one particular insurance company; instead, he works on behalf of policyholders to ensure that they receive fair compensation. Although most people don’t need to hire an independent adjuster, you might want to consider hiring one if your case is particularly complex or if you feel like your current insurer isn’t offering you enough money.

Conclusion

If you’re having a dispute with your insurance company regarding coverage, repairs or other questions, it’s best to speak with an independent adjuster before making a move. These professionals work in your best interest and can ensure that all your needs are met.