How Hiring a Public Adjuster Can Actually Save You Money: Unpacking the Florida OPPAGA Study
When disaster strikes, the last thing you want to worry about is navigating the complexities of an insurance claim. Despite paying premiums faithfully, many homeowners find themselves getting less than what they deserve when it comes to settling their insurance claims. That's where a public adjuster comes in handy.
The Florida OPPAGA Study: An Overview
The Florida Office of Program Policy Analysis & Government Accountability (OPPAGA) conducted a study examining the outcomes of insurance claims that involved a public adjuster versus those that didn't. One of the most compelling findings of this study was that homeowners who employed the services of public adjusters received higher payments—even after accounting for the adjuster's fees. (Download the study here.)
Specifically, the OPPAGA study found that insurance payments on fire damage claims were significantly higher when a public adjuster was involved. In some cases, the claim payments were up to 1,700% higher.
Crunching the Numbers: Why You'll Come Out Ahead
Let's break this down with some math. Suppose your home suffers fire damage and you're looking at an insurance claim payment of $50,000 as the initial offer from your insurance company.
Scenario 1: Without Public Adjuster
If you go it alone without a public adjuster, you might end up accepting that $50,000.
Net Claim Payment = $50,000
Scenario 2: With Public Adjuster
Now, let's say you hire a public adjuster who charges a 20% fee. Because of their expertise, the negotiated payout is $150,000—a three-fold increase, which is modest compared to the 1,700% found in some cases by the OPPAGA study.
Gross Claim Payment = $150,000
Public Adjuster's Fee (20% of $150,000) = $30,000
Net Claim Payment After Fee = $150,000 - $30,000 = $120,000
You’re left with $120,000 even after paying the adjuster's fee.
That's a net gain of $70,000 compared to going it alone.
In other words, if you give away a piece of a bigger pie, you still end up ahead. In some cases, you end up really far ahead.
The Fair Claims Group, Inc. bakes big pies.
Beyond the Numbers: The Intangibles
While the monetary advantages are clear, it's worth considering the non-quantifiable benefits as well. Public adjusters are skilled negotiators well-versed in the nuances of insurance policies, local building codes, and state laws. They help you avoid costly mistakes, save you immense amounts of time, and reduce the stress that comes with handling a claim on your own.
Conclusion
The Florida OPPAGA study highlights an often-overlooked aspect of dealing with insurance claims: higher payouts aren't just about more money in your pocket; they also cover the costs of making you whole again after a disaster. Public adjusters more than earn their fees through their ability to secure higher payouts—and give you peace of mind during a challenging period.
If you find yourself needing to file an insurance claim, the numbers make it clear: hiring a public adjuster can make a significant financial difference.
Disclaimer: The above examples are for illustrative purposes only and individual cases may vary. It's essential to consult professionals for your specific circumstances. Individual state laws might also affect the fee percentage.
