“Smoke. I smell smoke!” The apartment complex is burning in a sea of flames. Within the hour, the fire is out, but a large part of the complex is toast – the throw-it-in-the-trash blackened type.
Let’s face it, trying to handle both your normal day job and a major insurance claim after a fire, storm, or catastrophe can easily become overwhelming. You need help; but how do you avoid hiring a shady lawyer or storm chasing public adjuster?
Start with these three important questions to ask before hiring either a public adjuster or attorney.
3 Key Hiring Questions
#1 Let's Talk Numbers:
What is this going to cost me? How are you paid? A famous question.
Public adjusters typically get paid 10% of the total claim money. As an example, on a $100,000 claim the PA collects $10,000 (10%) leaving you $90,000. If the claim increases to $120,000, the PA nets $12,000.
Attorneys typically are paid 0% on the initial claim but 33-40% on the additional claim money. As an example, on a $100,000 initial claim the attorney collects $0 (0%) leaving you $100,000. If the claim is increased to $120,000, the attorney nets $6,500. State insurance laws also permits attorneys to collect additional fees, which can help offset their fee.
#2 Sir, your license please:
Both PA’s and attorneys must be licensed. Always verify their licenses to make sure they are legally operating in the State of Texas. Use the State Bar or Texas Department of Insurance. Also, make sure they are operating under their own name.
#3 A few too many:
Ask how many claims the PA or attorney is working. In a major disaster such as a citywide flood, make sure you are not lost in the mix. Does the PA or attorney have a support staff or the bandwidth to give you the attention you deserve.
Food For Thought:
Even if everything seems to go your way, listing, describing, and determining value of the seemingly countless items destroyed (or damaged) is time-consuming and labor-intensive. Add meetings with various adjusters, inspectors, and contractors, all while trying to decipher insurance or construction jargon, can unravel even the most “put together” person.
Avail yourself of professional help.
An experienced public adjuster or attorney will save you thousands of dollars and more than make up for their fee.
Have questions or help with a difficult claim?
