Electrical Fire @ Duplex--Do I need a Public Adjuster?

[Alex Smith]

Hi BP!

Today my duplex caught on fire. Thankfully, only one of my tenants was there and she was able to get out safely and call the fire department. So thankful this didn't happen in the middle of the night. It could have been so much worse. 

Turns out that it was an electrical fire originating from the breaker box in the basement. The place is currently uninhabitable. I've contacted insurance and secured the home, however, I've been getting many calls from "Public Adjusters." I even had some show up at the property immediately after, when the fire company was still there and everything (which I thought was pretty rude). I'll be honest, until today I didn't even know what a public adjuster was, but from what I learned today, it's someone who is there to represent me to the insurance company to help us maximize the money we receive for renovations? These guys made it seem like the adjuster from the insurance company will have the insurance companies best interest in mind. Meanwhile, if I were to hire a public adjuster, they would have my best interest in mind and make sure that I'm treated fairly? 

Does anyone have any experience with this that could provide some insight? I have the adjuster from the insurance company coming out this Thursday. What should I do? Thanks!

[Jose Linares]

@Alex Smith Everyone has their own opinion on Public Adjusters and I tend to see more BP members recommend hiring a public adjuster immediately.  As a former insurance adjuster, I would advise against using a public adjuster at this point in the claims process.  The Public Adjuster will attempt to increase the settlement of your claim, but realistically will take that portion they increase as their fee.  Often times, they actually take away from your settlement because they could not negotiate a large enough settlement from the insurance carrier, but you still owe them your fee.

Give your insurance carrier and adjuster an opportunity to meet with you, explain the claims process, and address your concerns.  

Instead of hiring a Public Adjuster, I would recommend asking friends, family, or BP investors for restoration companies they personally have used in the past.  Restoration contractors deal with insurance losses daily, may already have a relationship with your adjuster, and will submit a proposal for the cost they need to have the work completed to "pre-loss condition" and your standards. You also won't have to worry about them taking a money away from your settlement since they will get an agreed upon scope with the adjuster.  

Feel free to PM me with any additional questions.