On July 4, the California Department of Insurance's Enforcement Branch partnered with investigators from the El Dorado County District Attorney's Office and the California Contractors State License Board to identify unlicensed public adjusters as well as unlicensed and uninsured contractors. The operation resulted in five arrests. The El Dorado County District Attorney's Office is prosecuting the cases."Preying on fire survivors is unconscionable," said Commissioner Poizner. "My department will continue to do everything possible to ensure residents aren't burned twice by contractors unwilling to protect their employees and customers from unnecessary liability."
Though to date no unscrupulous public adjusters have been found soliciting people who have suffered loss by fire in the Lake Tahoe area, the Department is concerned with reason, since it has happened in the recent past. While the public insurance industry, especially in California, has earned a bad reputation, good public adjusters are doing their best to changes things. But there are still nefarious contractors and public adjusters out there. So, since you will likely need the services of one or both of these entities should you have a property insurance claim, how can you know whom to choose?
In my book, Property Claims Adjusting: A Complete Guidebook for the Consumer, California Homeowners Edition (Murrieta, CA: Premier Claim Consultants, 2007), I offer simple checklists for evaluating and choosing both contractors and public adjusters. Here is what I suggest:
When it comes to choosing contractors, there are three critical steps:
- Check to make sure the contractor is licensed and bonded.
- Make sure the contractor has workers compensation and liability insurance.
- Check the contractor's references.
The first two steps can be accomplished by visiting the California Contractors State License Board and inputting the license number provided to you by the contractor. You can obtain a list of references from the contractor and call them to see if their project was similar in scope to yours, and then ask them if they were satisfied with the service they received, or perhaps even asking if you can stop by and take a look at the work the contractor completed.
Once you decide which contractor you want to use, then there are several important steps you need to take to make sure the contract you sign protects you:
- Be sure the financial terms of the contract are clear. The contract should include the total price, when payments will be made, and whether or not there is a cancellation penalty.
- The contract should specify all materials to be used, such as the quality, quantity, weight, color, size, or brand name as it may apply.
- Your contract should specify an approximate starting date and completion date for your project. However, external factors such as the weather or the availability of supplies might cause delays.
The above points are taken from the publication, What You Should Know Before You Hire A Contractor (California: Contractors State License Board, 2004), pages 14-16.
When it comes to choosing a public insurance adjuster to represent you in settling your property claim, I recommend you consider the following:
- Is the public adjuster licensed?
- Does the public adjuster have references you can check?
Do the references supplied provide credible, positive feedback on their experience with the public adjuster?
- Does the public adjuster appear professional and does he or she seem genuinely concerned with your interests or are they eager only to “sign you up”?
- Has the public adjuster patiently answered any relevant, claim or coverage questions you have asked?
- Does the public adjuster take the time to provide a general summary of what you can expect?
You can check a public aduster's license by visting the web site of the California Department of Insurance and inputting the license number provided to you by the public adjuster, or by calling the California Department of Insurance License Bureau at (800) 967-9331 or (916) 322-3555.
After a loss to your home or personal property, the last thing you need is for someone to take advantage of your situation when what you need most is honest, reliable, and productive service. Likely, you will need the assistance of a contractor and a public insurance adjuster. But while you may need them, you only really need the ones who are legitimate and who will make your situation better, not worse. You can protect yourself by following the above suggestions when it comes to choosing repair contractors or public adjusters.
For more information about how to successfully negotiate your property insurance claim, how to evaluate public insurance adjusters, choosing repair contractors, and understanding many of your rights and obligations in a property claim settlement, see Property Claims Adjusting: A Complete Guidebook for the Consumer, California Homeowners Edition (Murrieta, CA: Premier Claim Consultants, 2007).
For more information about public adjusters in general, expert witness services, property claims adjusting, appraisals, and litigation support, visit my website at http://www.premier-claim-consultants.com/.
