Florida Licensed Public Adjusters Are The Good Guys! 

In my last blog I discussed the difference between Actual Cost Value and Replacement Cost Value.  The point of that article was to impress upon the reader that the Insurance Carriers valuation of the loss is often not a correct valuation of the loss.  Insurance Carriers often outright deny claims that are covered losses per the policy of insurance or underpay the covered loss.  That raises the next question.  How are homeowners supposed to value their loss?  The answer to that question is both complicated and simple at the same time.  The simple answer is you need to get a reliable estimate.  The complicated part stems from the word reliable.  That is to say, you need to get an estimate from a reputable source.  So what are these reputable sources?  

Depending on the type of the damages, these are Public Adjusters, Licensed General Contractors, Licensed Building Contractors, Licensed Residential Contractors, and Licensed Roofing Contractors.  However, we will talk about Contractors in my next blog post.  In this article I want to talk about Public Adjusters, their importance, their role in the claims process, and their qualifications as they relate to preparing an estimate of your loss.

Public Adjusters are a great source to consult when disputing an Insurance Carriers adjustment of damages.  They are competent, qualified, Licensed Adjusters that work independently of Insurance Carriers; i.e. they work on YOUR behalf to undertake a settlement of your claim of loss.  Usually, Public Adjusters are hired at the beginning of the process and assist in documenting the loss, writing a preliminary estimate, and if hired early enough, filing the claim.  Public Adjusters sometimes get a bad rap.  This is primarily because people think they are under qualified.  However, this can’t be further from the truth.  To understand the backgrounds and qualifications of a Public Adjuster you first have to understand the categories of Adjusters that Adjust Property Damage in the state of Florida.

  Generally, in Florida Adjusters fall into 3 categories: Public Adjusters, Company Employee Adjusters, and Independent Adjusters.  All three of these types of Adjusters carry what’s called an All-Lines Adjusters License or what’s otherwise known as a 6-20.   As a bit of background, let’s discuss the qualifications required to get an All Lines Adjusting License.  Apart from the basic requirements of being of sound age and being legally eligible to work in the United States; in order to obtain an All Lines Adjusters License you must have a trust worthy business reputation which is vetted during the application process; you must have sufficient experience, training, or instruction concerning the adjustment of damage or loss under insurance contracts; and either earned a state certification through completion of an All Lines Adjusting course from an accredited state institution or passed the state licensing exam.  In order to fully understand the qualifications of a Public Adjuster you have to look at the qualifications of Company Employee Adjusters and Independent Adjusters. 

So what exactly is a Company Employee Adjuster?  A Company Employee Adjuster is exactly what it sounds like, it is a person licensed as an all-lines adjuster who is appointed and employed on an insurer’s staff of adjusters or wholly owned subsidiary of the insurer.  So what does that mean in terms of qualifications of a Company Employee Adjuster?  That means that a Company Employee Adjuster is only required to have completed the All Lines Adjusting License requirements in order to act as an Adjuster.  

Now let’s examine Independent Adjusters.  An Independent Adjuster is a person licensed as an all lines adjuster who is self-appointed or appointed by an independent adjusting firm, who undertakes on behalf of an insurer to determine the amount of a claim or loss.  Statutorily the qualifications are the same as a Company Employee Adjuster; they are only required to have completed the All Lines Adjusting requirements.   It should also be noted that an Independent Adjuster is primarily the same thing as a Company Employee Adjuster, in that they are both adjusters acting on behalf of an Insurance Carrier.  The only difference is one is directly employed and appointed by the Insurance Carrier while the other is a third party vendor hired and appointed on behalf of the Insurer to adjust the damages. 

Now, let’s take a look at Public Adjusters.  What is a Public Adjuster?  A Public Adjuster is a person other than an attorney, who adjusts an insurance claim on behalf of an insured.  Their duties also encompass filing the claim for the insured as well as negotiating for or effecting the settlement of such claim when it is eligible for settlement prior to the beginning of the pre-suit process.  However, I want to talk about the qualifications of a Public Adjusters compared to Independent Adjusters and Company Employee Adjusters.  First things first, Public Adjusters must first obtain their All Lines Adjusting License, which outlined above requires a background check; and passage of a state licensing exam or completion of an adjusting course from an Accredited State Institution.  However, Public Adjusters must also go through an additional licensing process specifically set out for Public Adjusters. In addition to having to pass a second licensing exam, Public Adjusters must also be appointed on a continual basis for the previous 6 months as a Public Adjuster Apprentice, an Independent Adjuster, or a Company Employee Adjuster.  Additionally, Public Adjusters must also post a $50,000 bond with the Department of State, which can be recovered by the department in the event of misconduct by the Adjuster.

All in all, this makes Public Adjusters higher qualified Adjusters than that of a Company Employee Adjusters and Independent Adjusters.  Over the course of my Career, I have deposed countless Company Employee Adjusters and Independent Adjusters and I always ask them what they did to get there All Lines Adjusting License.  They all had the exact same answer in that they took a 40 hour online course and passed an exam.  As a matter of law, Public Adjusters are required to have 6 months on the job field training before licensure.   That’s 6 months of studying different types of claims, damages associated with the those claims, repair processes, what materials are needed for repairs, the amount of labor needed for repairs, the length of time it takes to complete a repair, and estimation software that helps combine all those factors into a reliable estimate.  Combine that with the $50,000 dollar bond they are required to post with the Department of State, that can be confiscated in the event of misconduct and you can see why I would trust an Estimate written by a Public Adjuster more than an Estimate written by a Company Employee or Independent Adjuster.  

The purpose of this article to showcase the qualifications and experience of Florida Licensed Public Adjusters and I hope I was able to do that.  If you have suffered damage to your property you think is covered under your Homeowners insurance policy.  One of the first steps to take is to reach out to a Public Adjuster for an evaluation of the damages and the claim.  They are experienced and trust worthy estimators that can help you establish your claim.  In addition they can help you get in touch with the appropriate contractor (who we will be discussing in our next article) that can help you repair your property to its pre-loss condition.

¹  Fla. Stat. § 626.864

²  Fla. Stat. § 626.8548

³  Fla. Stat. 626.866

⁴  Fla. Stat. § 626.856

⁵  Fla. Stat. § 626.855

⁶  Fla. Stat. § 626.854

⁷ Fla. Stat. § 626.865

⁸ Id.

⁹ Id.