You may wonder about the total cost involved if you plan to hire a public adjuster in Georgia to oversee your residential or commercial insurance claims. If you are unsure how the overall cost is calculated, we are here to help.
Public Adjusters Fee Structure – Everything you need to Know
It is important to understand that each public adjuster in Georgia is different; some are governed by specific state laws and regulations about how they should be compensated for their services. It is best to consult the Georgia Association of Public Insurance Adjusters for more information.
The most common ways public adjusters charge their clients include hourly rates, flat rates, or on a contingency basis.
Flat Rate
If you have a simple case that involves a large claim with an obvious outcome, your public adjuster may charge a flat fee for the whole process. It is crucial to know what the fees cover and doesn’t cover since you don’t have to get tangled in any extra charges at the last minute. Make sure to agree on the amount before you sign the contract.
Hourly Rate
Charging an hourly rate is not a common fee structure that public adjusters use for their services, but some prefer it. The fees you pay per hour will largely depend on the adjuster’s expertise and experience, the type of insurance policy you have, and their operating expenses. Ask your public adjuster how many hours it will take to work on your case so you can determine the total cost.
Contingency Basis
Charging contingency fees is the most common fee structure that public adjusters use. This involves charging a certain percentage from your total insurance payout – normally between 5% and 15%. This figure can vary depending on their experience, and you may also be responsible for some minor expenses and fees.
The general rule is that the higher the compensation, the lower the fees, and vice versa. For instance, if your insurance claim totals $300,000, you may have to pay a contingency fee of 6%. On the other hand, a claim worth $40,000 may have a 14% charge.
Hiring the Best Public Adjuster in Georgia
Before hiring a public adjuster, do your homework and look for the following things.
- License: A valid license ensures that the public adjuster has met Georgia’s education and experience requirements for practicing the profession. Contact the Georgia Department of Insurance to verify the licensing information of the public adjuster.
- Strong References: Reputable public adjusters are backed by customer testimonials. Make sure to read online reviews and check their website for more information.
- Past Experience: It is important to choose a public adjuster that has ample experience working in your state so they can understand your case better.
Final Thoughts
Public adjusters normally get paid after you accept the final offer from your insurer. Once the offer is accepted, the adjuster will take a pre-determined cut from the final compensation payout. In other cases, the public adjuster may charge an hourly rate or a fixed prearranged fee.