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Hurricane Ian Recovery
Know who you are letting in the door
After a disaster, contractors, roofers, adjusters and many strangers will come into contact with you. Please be careful who you let in the door. Ask to see business cards and licenses and check with the State's licensing online portals. Many Hurricane Ian homeowners and businesses are desperate to get recovery help. In doing so, some
After a disaster, contractors, roofers, adjusters and many strangers will come into contact with you. Please be careful who you let in the door. Ask to see business cards and licenses and check with the State's licensing online portals. Many Hurricane Ian homeowners and businesses are desperate to get recovery help. In doing so, some may encounter some not so good intentions from those who come knocking. It is important that no one gets taken advantage of. KMA does not promote fear or use underhanded tactics. A good company has plenty of works from referrals alone.
Having knowledge about who is who during this crisis will create clarity and hopefully help each other through this rough patch.
At KMA, our consultants are experts in various recovery field: consulting for government, businesses, and insurance claims. We are licensed professionals, and we only work with other licensed professionals.
Consultants for insurance claims are regulated in most states, especially in Florida, as a Public Adjusters.
If your insurance company is inspecting and paying your Hurricane Ian claim correctly, you do not need a public adjuster.
However, if you do not feel you were paid correctly, or you cannot get your calls returned in weeks, you can reach out to our licensed public adjusters for a free consultation. We deal mostly with commercial businesses such as municipalities, retail infrastructure, houses of worship, restaurants and hotels, but we also work with partners who specialize in residential claims. So, if you need help, we are here to help.
INDEPENDENT ADJUSTER
The damage inspectors for the insurance carrier are called independent adjusters and represent your insurance company. They should be able to provide you with their business cards and their Florida license number. Some may have an emergency license if they come from out of state. They represent the interest of the insurance carrier, and hopefully, also your interest. The quality of their work depends on their experience level, and their workload. After a major disaster like Hurricane Ian, these representatives for the carriers come from all over the country. They may have to inspect 8 to 10 roofs a day to get the claims done according to the state's inspection deadline requirements. The independent adjusters don't get paid until they complete your inspection, photos, and estimates. They often get paid on a fee schedule, meaning that the more damages they find the higher their fee.
That should give them the incentive to do a thorough job. However, not all adjusters are of the same experience and qualifications. New adjusters will often write an estimate conservatively, or under the deductible, relying on volume of claims to add up their fees. Even if they deny your claim, they still get paid. So, there is no incentive for a new adjuster to spend days working on your claim, when they can make it up in volume of claims turned in. To get an emergency adjuster license they do not even have to prove their experience. Be wary of new adjusters.
Make sure you ask for an advance right of away so you can do emergency work and start the recovery process while the claim is being evaluated.
FLOOD ADJUSTER
Flood claims under NFIP policies are regulated by FEMA, which is federally regulated, not state regulated. A licensed insurance adjuster must still be certified by FEMA to do flood claims.
(Do not confuse private flood policies with your homeowner insurance with a NFIP flood policy managed by Write Your Own (WYO) carriers.)
Flood claims under NFIP policies are extremely complex for both residential and for commercial properties. Our flood experts have the highest certification and experience under the FEMA flood program.
Not all adjusters are flood certified, so make sure that your flood adjuster has the certification and training to adjust your claim fairly. All flood adjusters working for FEMA have to show you a badge showing their showing their NFIP Identification number. The experience level and volume of the inspection these flood adjusters have to complete may also prevent them from accurately estimating your flood claim. Make sure you ask for an advance right of away here also, so you can do emergency work and start the recovery process while the claim is being evaluated.
PUBLIC ADJUSTER
A public adjuster is hired by and works for the insured, not the insurance company. KMA's public adjusters are licensed and bonded. We adhere and follow the law for public adjusters.
Here are the rules for Public Adjusters as regulated by the Department of Financial Services:
Florida Statutes Regulating Public Adjusters
Important changes have been made to the Florida Statutes regulating the business of public adjusters in the past couple of years. Below are some that are the most important:
Customer and Insurer Contact
- Public adjusters may not solicit an insured or claimant, directly or indirectly by any means, except on Monday through Saturday of each week and only between the hours of 8 a.m. and 8 p.m. on those days
- Further, DFS may suspend, revoke, or refuse to issue the license of an insurance adjuster that makes a consumer’s personal financial or medical information available to the public, or initiates, without the request of a prospective customer, in-person or telephone solicitation after 9:00 p.m. or before 8:00 a.m. local time of the prospective customer.
- Public adjusters must provide the claimant or insured a written estimate of the loss to assist them in the submission of a proof of loss or any other claim for payment of insurance proceeds within 60 days after the date of the contract. The written estimate must include an itemized, per-unit estimate of the repairs, including itemized information on equipment, materials, labor, and supplies, in accordance with accepted industry standards. This estimate must also be available to the insurer or department should they request a copy. The written estimate must be maintained in the public adjuster's records for at least 5 years.
- The law states that company adjusters, independent adjusters, attorneys, investigators, or others acting on behalf of the insurer must give the insured, claimant, public adjuster or legal representative of the insured at least 48 hours notice that they need access to the damaged property. The insured or claimant can waive this notice.
- Public adjusters must provide prompt notice to an insurer for which the public adjuster is handling the claim for a claimant or insured. In addition to the notice, a public adjuster must include a copy of the contract; ensure the property is available for inspection and that the insurer has an opportunity to interview the insured directly about the loss. A public adjuster's actions must not obstruct or prevent an insurer or company adjuster or other person acting on behalf of the insurer from having reasonable access to the insured, claimant or the insured property. If a public adjuster is unavailable and it would delay the insurance company's timely inspection of the damaged property, the public adjuster or the insured must allow the insurer access to the property without the public adjuster or insured's participation.
- The insurer may not exclude the public adjuster from its in-person meetings with the insured. The insurer shall meet or communicate with the public adjuster in an effort to reach agreement as to the scope of the covered loss under the insurance policy. The public adjuster shall meet or communicate with the insurer in an effort to reach agreement as to the scope of the covered loss under the insurance policy. This section does not impair the terms and conditions of the insurance policy in effect at the time the claim is filed.
- A public adjuster shall not acquire any interest in salvaged property, except with the written consent and permission of the insured through a signed affidavit.
- A public adjuster, public adjuster apprentice, or public adjusting firm that solicits a claim and does not enter into a contract with an insured or a third-party claimant pursuant to 626.854(10)(a), F.S., may not charge an insured or a third-party claimant or receive payment by any other source for any type of service related to the insured or third-party claimant’s claim.
- A public adjuster, public adjuster apprentice, or any individual or entity acting on behalf of a public adjuster or public adjuster apprentice may not give or offer to give, directly or indirectly, any article of merchandise having a value in excess of $25 to any individual for the purpose of advertising or as an inducement to entering into a contract with a public adjuster.
Fees
- A public adjuster may not charge a fee unless a written contract was executed prior to the payment of a claim.
- Public adjusters are prohibited from receiving compensation from any source which would exceed the statutory fee cap.
- Public adjusters are prohibited from charging more than 20 percent of the insurance claim payment on claims not based on a declared emergency and 10 percent of the insurance claim payment on claims based upon a declared emergency for claims made during the first year after the declaration of the emergency. These fee caps apply only to residential property insurance policies and condominium unit owner policies as defined in s. 718.111(11), F.S. [See s. 626.854(18), F.S.]
- The fee cap on re-opened or supplemental claims is 20 percent of the claim that is not based on a declared emergency. The 10 percent fee cap for a claim that is based upon a declared emergency still applies as stated above. The public adjuster's fee cannot be based on any payments made by the insurer to the insured prior to the time of the public adjuster contract. These fee caps apply only to residential property insurance policies and condominium unit owner policies as defined in s. 718.111(11), F.S. [See s. 626.854(18), F.S.]
Contracts
- An insured or claimant may cancel a public adjuster’s contract to adjust a claim without penalty or obligation within 10 days after the date on which the contract is executed.
- The public adjuster’s contract must contain the following language in minimum 18-point bold type: "You, the insured, may cancel this contract for any reason without penalty or obligation to you within 10 days after the date of this contract by providing notice to …(name of public adjuster)…, submitted in writing and sent by certified mail, return receipt requested, or other form of mailing that provides proof thereof, at the address specified in the contract."
- Public adjuster contracts must be in writing and must display an anti-fraud statement.
- A public adjuster contract related to a property and casualty insurance claim must contain the full name of the public adjuster and public adjusting firm, the business address, license number, and other specified information.
- A public adjuster, public adjuster apprentice, or public adjusting firm that solicits a claim and does not enter into a contract with an insured or a third-party claimant pursuant to 626.854(10)(a), F.S., may not charge an insured or a third-party claimant or receive payment by any other source for any type of service related to the insured or third-party claimant’s claim.
- There are several important statutory requirements pertaining to contracts made by public adjusters:
- Must state the type of claim, including an emergency claim, non-emergency claim or supplemental claim.
- Requires the signatures of all named insureds.
- If the signatures of all named insureds are not available, the public adjuster must submit an affidavit signed by the available named insureds attesting that they have authority to enter into the contract and settle all claim issues on behalf of the named insureds.
- An unaltered copy of the contract must be remitted to the insurer within 30 days after execution. This means the contract provided to the insurer must also contain the agreed upon fee percentage.
Sinkhole Claims
Subsection 627.706(5), F.S., was created to limit the time period a policyholder can present an initial, supplemental or reopened claim under an insurance policy that provides sinkhole coverage. Under this subsection, these claims are barred unless notice was given to the insurer in accordance with the terms of the policy within 2 years after the policyholder knew or reasonably should have known about the sinkhole loss.
Advertising
- Public adjusters are prohibited from making deceptive or misleading statements in advertisements or solicitations.
- The following statements, made in any public adjuster's advertisement or solicitation, are considered deceptive or misleading:
- A statement or representation that invites an insured policyholder to submit a claim when the policyholder does not have covered damage to insured property.
- A statement or representation that invites an insured policyholder to submit a claim by offering monetary or other valuable inducement.
- A statement or representation that invites an insured policyholder to submit a claim by stating that there is no risk to the policyholder by submitting such claim.
- A statement or representation, or use of a logo or shield, that implies or could mistakenly be construed to imply that the solicitation was issued or distributed by a governmental agency or is sanctioned or endorsed by a governmental agency.
- The term written advertisement includes only newspapers, magazines, flyers, and bulk mailers. The following disclaimer, which is not required to be printed on standard size business cards, must be added in bold print and capital letters in typeface no smaller than the typeface of the body of the text to all written advertisements by a public adjuster:
"THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY DISREGARD THIS ADVERTISEMENT."
You are not alone
KMA adjusters and risk managers have over 40 years of expertise in negotiating commercial and high net worth claims with insurance companies. Our consultants are ex adjusters and claims executives, with depth of knowledge and experience in the claims processes and insurance coverages.
Call or email KMA for a free consultation (727) 388-5259