Should I Hire A Public Adjuster? - Varsity KOAM Construction Company

Licensed by the Department of Insurance to represent property owners in claims against insurance companies.
Helps ensure that policyholders receive the full amount they are entitled to, particularly in wildfire damage cases.
Negotiates with insurers, prepares professional damage assessments, and provides documentation to substantiate claims.

Public adjusters work on a contingency basis, charging a small percentage of the recovered insurance payout.
No upfront cost; only paid when additional funds are secured beyond what the insurance company initially offers.

Partial Damage (Smoke or Fire Damage)
- Insurers may not pay the full policy limit immediately.
- Adjusters should be present during the inspection to ensure appropriate loss reserves.
- Insurance companies often prioritize total loss claims, making a public adjuster valuable in getting fair compensation.
Total Loss Claims
- The Department of Insurance mandates certain upfront payments for total loss victims (e.g., four months of loss-of-use payments).
- Homeowners should verify that they have received the mandated payments.
- Once the insurer issues an initial advance, a public adjuster can analyze the policy to determine what additional funds may be recovered.

Failing to use insurance-approved estimating software (e.g., Xactimate, Symbility).
Getting contractor bids instead of structured insurance estimates, leading to insurance disputes.
Not recognizing smoke and fire-related damage (e.g., soot in ventilation, insulation damage).
Not hiring professionals (e.g., environmental hygienists) when needed.

Lawyers acting as public adjusters typically charge significantly higher fees (25-35% vs. 5-10%).
If litigation is required (e.g., suing a utility company for liability), lawyers become essential.
If a dispute is solely about insurance policy limits, a public adjuster is often sufficient.

Environmental testing may be covered under some policies, but not all.
Insurance companies prefer deducting costs for engineers, testers, and consultants from policy limits, which public adjusters often contest.
Homeowners generally hire and approve testers, though insurers may offer their own.

If there is a mortgage on the property, insurance payments may be held by the mortgage company in escrow and released in stages.
Homeowners should coordinate with the mortgage company’s “Lost Draft Department” for check endorsements and disbursement.

Policyholders can claim temporary housing costs, including rent, increased food expenses, and utilities.
If staying with family, homeowners should create a lease agreement to claim reimbursement.
The California Department of Insurance has mandated insurers extend ALE coverage from 12 to 24 months, with additional 6-month extensions.

Smoke remediation costs range from $40,000 to $100,000.
Insurance covers necessary repairs after remediation, but homeowners may need to ensure that the work is fully funded.
Some remediation companies do not handle reconstruction, requiring additional contractors.

Policies often cover the incremental cost of bringing a structure up to modern building codes but may have limits (typically 10% of policy).

If policy limits are insufficient for rebuilding, homeowners may need to reallocate funds from other coverage areas (e.g., personal property).
In such cases, legal action may be the only way to secure additional compensation.

Helps homeowners create a detailed inventory of lost items.
Ensures all items are priced before submission to avoid insurer undervaluation.

Public adjusters help maximize insurance claims without upfront costs.
They ensure fair compensation for wildfire-related property damage, whether partial or total loss.
Working with an adjuster from the beginning can prevent low-ball insurance settlements.