Homeowners Insurance Companies in Florida like to point fingers, but are public adjusters the ones to blame?
Florida’s homeowners insurance companies are always looking to pass the buck or explain why they think they aren’t responsible for paying more for insurance claims for property damages. These insurance companies sometimes tell homeowners and insureds that they shouldn’t have hired a public adjuster, that it will just makes things more contentious and the insurance company or independent adjuster was planning to “take care” of a homeowner, but now they can’t because a public adjuster is involved.
Is the insurance company telling the truth? Or is this just a talking point?
Every industry has bad actors, including public adjusting and attorneys
Florida sometimes feels like the insurance fraud capital of the world. Right up there with all of the head-shaking and eye-rolling news stories of “Florida Man,” it seems that with an equal amount of regularity there are news stories about public adjusters coordinating one scam or another.
In the spring of 2019, an insurance fraud ring in South Florida was busted submitting phony property damage insurance claims involving 35 suspects led by a public adjuster, her relatives and employees, an insurance agent, a plumber, a handyman, a water mitigation contractor, and, believe it or not, her ex-husband who was a police officer at the time.
At the time of publication of this article, there’s are ongoing matters involving a Florida attorney and law firm, public adjuster, and a water mitigation contractor either submitting fraudulent claims or manipulating valid claims to extort Florida’s insurance companies for additional benefits that wouldn’t have been justified had the public adjuster or attorney been reasonable at any point along the way. This alleged ring has resulted in multiple bar complaints against the attorneys and the law firm, an investigation (ongoing) from the Department of Financial Services, and a civil RICO lawsuit against all of the people involved from the state-run Citizens Property Insurance Corporation.
Public Adjusters are only as good as their individual ethics
Despite the big headlines, these types of behavior are contained within the vast minority of attorneys and public adjusters. Florida’s legislature has acknowledged that the profession of public adjusting engages the public trust, and includes a high bar for licensing and a dedicated enforcement agency providing ongoing monitoring and investigation of anyone alleged to be conducting themselves in a way that is improper.
Just as some individual attorneys, or areas of legal practice have gained the reputation of being “ambulance chasers,” the actions of some risk jeopardizing the reputation of the public adjusting industry as a whole.
VIP Adjusting makes sure to hold its public adjusters to the highest standards in order to provide representation to our clients throughout Florida’s Treasure Coast and Space Coast.
What happens if insurance company talking points spread?
Unfortunately for the consumer, the insurance company talking points that public adjusters are the problem have been picked up by Florida’s Chief Financial Officer, Jimmy Patronis, the individual in charge of public adjuster regulation. In the aftermath of Hurricane Michael, and while Hurricane Dorian was approaching Florida, Patronis was reported to have held a private telephone call with representatives of Florida’s insurance companies saying that he would do what he could to eliminate the road blocks provided by public adjusters and attorneys. Subsequent to that, Patronis publicly bashed public adjusters and attorneys, blaming them for claim delays and assisting the legislature in proposing more restrictive regulations on public adjusters, citing the minority bad actors, without acknowledging them as a minority, as a reason for the attacks.
In reality, a public adjuster is only as beneficial for the consumer as that public adjuster’s ethics. To make sure you’re not getting caught in a trap set by your insurance company, or being grossly underpaid, it’s best that you vet any public adjuster you consider hiring. Ask questions. Request CVs and references for the public adjuster. Read reviews online.
Pursuing an insurance claim for damage to your home or business is about more than just a number. It’s about rebuilding your life or your livelihood. If you haven’t established you can trust your public adjuster, you shouldn’t be signing a contract with that public adjuster.
You might also be interested in:
Why you should hire a public adjuster
More about the background of VIP Adjusting’s public adjusters