Understanding Insurance Policy Types and Why You Need a Public Adjuster

At United Public Adjusters & Appraisers, we understand that no two insurance policies or claims are alike. Whether you’re dealing with a simple home damage claim or a complex business loss, we work tirelessly to ensure our clients receive every dollar they are entitled to. Insurance claims can be a daunting process, especially when dealing with complex policies or when insurers try to minimize payouts. That’s where the expertise of a public adjuster can make all the difference.

Common Types of Insurance Policies

Actual Cash Value (ACV)

Actual Cash Value policies pay out the cost of replacing damaged property, minus depreciation. This means you’ll receive a payout based on the current value of your property, rather than the replacement cost.

• Why You Need a Public Adjuster: Depreciation is often subjective, and insurers may reduce your payout based on their own assessments. Without a thorough understanding of how depreciation is calculated, you could face underpayments. A public adjuster will ensure that the depreciation is calculated correctly and fight to maximize your payout.
• Example: Imagine your roof is valued at $20,000 for replacement, but after depreciation, the payout is reduced to $14,000. A public adjuster would advocate for a fairer valuation and help you recover the full $20,000, ensuring the insurance company does not unfairly reduce your claim amount.

Replacement Cost (RC)

Replacement Cost policies cover the full cost of replacing damaged property with similar items of equal quality. Payments are typically made in two stages: the initial payment of the ACV upfront and the final reimbursement of the remaining balance after proper documentation of repairs is provided. 

• Why You Need a Public Adjuster: While RC policies guarantee 100% of the payout, delays or denials can occur if documentation is incomplete or improperly submitted. A public adjuster can ensure all required paperwork is in order, preventing delays and ensuring you receive your full reimbursement.
• Example: For a $25,000 roof replacement, your insurer might pay $15,000 upfront (ACV). Once the repairs are completed and properly documented, the remaining $10,000 is due. A public adjuster will help facilitate the process and make sure the full amount is paid promptly.

Extended Replacement Cost

Extended Replacement Cost policies provide an additional 10%-25% above the standard Replacement Cost coverage to account for rising material and construction costs.

• Why You Need a Public Adjuster: To access this additional coverage, you need to provide accurate documentation to justify the need for extra funds. A public adjuster can help navigate this process, ensuring that these additional funds are released without delays, especially when inflation or unexpected price increases occur.
• Example: If rebuilding costs rise by $50,000 due to inflation, an Extended Replacement Cost policy could provide additional coverage. A public adjuster ensures that these extra funds are properly utilized to cover the increase in costs.

Guaranteed Replacement Cost

Guaranteed Replacement Cost policies cover the full cost of rebuilding or replacing property, even if it exceeds the stated policy limit. However, the insurer typically holds funds until proof of expenses and documentation of repairs are submitted.

• Why You Need a Public Adjuster: Negotiations are often necessary to secure a fair settlement, and insurers may delay releasing funds until the repairs are documented. A public adjuster assists in managing the claim throughout the process, ensuring the insurer releases the full amount owed, even beyond the stated policy limit.
• Example: Let’s say you have a $4 million stated policy limit. Your insurer initially offers a settlement much lower than this limit. Through negotiation, a public adjuster helps secure a $7 million settlement. However, the insurer may hold back the additional $3 million until you provide proof of expenses. With the help of a public adjuster, you ensure the full $7 million is released, managing the process from the start of repairs to final documentation.

Why Choose United Public Adjusters & Appraisers?

When it comes to navigating complex insurance claims, you need a trusted partner by your side. Here’s why you should choose United Public Adjusters & Appraisers:

• Maximized Payouts: We fight for every dollar you’re entitled to under your policy, ensuring you don’t leave money on the table.
• Seamless Process: Our team handles all the documentation, negotiations, and ongoing claim management, so you don’t have to.
• Experience You Can Trust: From the initial inspection to the final payout, we guide you through every step of the process, ensuring your claim is handled with the expertise it deserves.

Let Our Team Be Your Ally

It’s important to remember that every insurance policy and claim is unique. The examples provided in this article are based on typical industry practices, but they may vary depending on the specific terms and conditions of your policy.

Navigating a complex insurance claim can be complicated, but you don’t have to do it alone. If you need help recovering what you deserve from your insurance company, contact United Public Adjusters & Appraisers for a free consultation. Our expert team is here to guide you every step of the way and help you maximize your claim payout.