How effective are Public Adjusters and how commonly are they used?
The best answer to this question can be found in a report prepared by the Office of Program Policy Analysis and Government Accountability or OPPGA, that was prepared for the State of Florida.
Their Report No. 10-06 examined claims against Citizens Property Insurance Corporation in cases with public adjuster involvement and issued a report in January 2010. The OPPAGA conducts policy research on the performance of state programs and provides information and recommendations to the Legislature.
Report No. 10-06 dated 2010 studied both catastrophe claims filed against Citizens Property Insurance Corporation between March 2008 and June 2009 related to the 2004 and 2005 hurricanes and non-catastrophic new claims filed during the same period.
14,997 catastrophe claims were studied.
7,698 were new claims dating back to the 2004, 2005 hurricanes.
7,299 were reopened claims pertaining to the 2004, 2005 hurricanes.
61,324 non-catastrophe claims were studied
“claims data found that cases took longer to reach a settlement but received higher payments when claimants used public adjusters for claims filed in 2008 and 2009.”
The public adjuster involved catastrophe claims resulted in payments to policyholders that were 747% higher (gross before payment of fees).
For public adjuster involved non-catastrophe claims filed during this period policyholders received an estimated 574% more in settlement (gross before payment of fees).
“Public adjusters represented policyholders in 26% of non-catastrophe and 39% of catastrophe claims filed during this period.”
For the complete report: www.oppaga.state.fl.us/MonitorDocs/Reports/pdf/1006rpt.pdf