Unfortunately, disasters bring out the worst in some people, such as home repair rip-off artists. You are at your most vulnerable when disaster strikes, so be wary of people who try to cash in on your misery. For example, when it comes to flood insurance, you need to be sure that you know the difference between public and private adjusters. Private adjusters are either employees of insurance companies or non-employees who contract directly with insurance companies. When disaster strikes, an insurance company often will send a private adjuster to appraise the loss and determine the amount of damages that have been suffered.
Public adjusters deal directly with people possessing flood insurance.
Their commission, typically 10 percent, is deducted directly from any insurance proceeds paid to the consumer. Like the private adjuster, the public adjuster appraises losses in order to determine the amount of damages involved. However, the settlements are not uniformly better than those achieved by private adjusters, plus the commission payment is always deducted from the claim settlement offered by the insurance company. For more information about dealing with private and public adjusters, contact your state insurance department. You must always be on your guard for home repair rip-off artists, who overcharge, perform shoddy work and often leave without finishing the job.