How are Restoration Contractors Different from Public Adjusters?
When property damage occurs, large or small, it is the insured’s duty to protect their property from further damage. In order to complete necessary emergency repairs and mitigate the loss, property restoration professionals should be one of the first responders on the scene. Depending on the incident, this can include turning off the main water pipes, removing damaged building materials, removing personal property to protect from potential mold growth, or extracting standing water. Using a restoration professional is a necessary part of managing the recovery of an insured loss; however their role in this complicated process must be properly understood.
A restoration contractor’s role is to repair the damaged property to its original state. Their expertise and training is focused on restoration and mitigation – not on protecting the interest of the insured or on filing claims on behalf of the insured.
Public insurance adjusters, by contrast, are licensed professionals who prepare, document, and submit insurance claims on behalf of home and business owners. As an expert who works only for the policyholder and never for the insurance companies, public adjusters fight for the insured to get them everything they are rightfully owed under their insurance contract. Public adjusters provide the insured with the peace of mind of knowing that their interests are being protected by someone who understands the complex language in their insurance policy.
Public adjusters work on behalf of the policyholder and are paid by the policyholder. Our entire focus is to get our clients the full amount owed to them due to the damages they suffered. We have the resources, training and staff to level the playing field with the insurance company consultants. For example, our firm is staffed with a team of senior professional public adjusters, estimators, inventory specialists and forensic accountants.
– Carl Gross, of Globe Midwest Adjusters International
Why is this differentiation important? Because although the majority of restoration contractors follow the laws under which they are required to work, there are some contractors who do not. When restoration contractors attempt to manage the insurance claims process on behalf of the insured, they are breaking the law. This infraction is known as the Unauthorized Practice of Public Adjusting.
In a recent post regarding the issue of Unauthorized Practice of Public Adjusting the National Association of Public Insurance Adjusters – NAPIA – (an organization to which Globe Midwest Adjusters International is proud to belong), commended the work of the Oklahoma Attorney General and the Oklahoma Department of Insurance in the prosecution of a contractor who had been accused of defrauding an elderly Moore, OK, resident in the aftermath of a tornado outbreak. NAPIA also recognized the work of one of its own in bringing this fraud to the attention of the authorities.
The association has been working closely with members of the National Association of Insurance Commissioners (NAIC), the National Association of Attorneys General (NAAG), the National Conference of Insurance Legislators (NCOIL), and the Coalition against Insurance Fraud (CAIF) to protect unsuspecting policyholders from the scourge of UPPA perpetrated by contractors and other unlicensed, untrained and unauthorized individuals. Oklahoma, along with 44 other states, requires those acting as public insurance adjusters to be trained and maintain an active license issued through the state insurance department.”
“By making this announcement, NAPIA brought attention to a problem that seems to be growing throughout the United States,” said Danielle Levin, Senior Adjuster for Globe Midwest Adjusters International. “It is in the best interest of all policyholders to understand that restoration professionals are not trained or licensed to offer advice about the insurance claims process.”
If you have any questions about how Globe Midwest/Adjusters International can help you with your claim, please contact us by phone at 1.800.445.1554 or email Carl Gross at email@example.com.