When should your board hire a public adjuster?

A public adjuster is a professional who is trained to assess and evaluate damage from a disaster and to determine the cost of repairs or replacements. They assist your co-op or condo board to understand your insurance policy and what is covered. They also assist with the claims process, often negotiating a higher payout than your building would receive on an uncontested claim.

Here are some of the benefits of engaging an adjuster after a disaster:

Documentation: An adjuster will conduct a thorough inspection of the affected property, documenting all damage, including photographs and a detailed written report. This documentation is essential for making a claim and for determining the cost of repairs or replacement.

Negotiation: Adjusters are experienced in dealing with insurance companies and understand the claims process. They work with the insurance company to negotiate a fair settlement for your building. 

Verification: An adjuster will ensure that the repairs or replacement are done properly, ensuring that your building is restored to its pre-loss condition.

Savings: Adjusters save your board time and money.  They will handle all of the paperwork and communicate with the insurance company. They can also help to ensure that your building gets the maximum payout for their claim.

Managing: An adjuster can manage the rebuilding process and make sure that budget and timeline are adhered to.

How much do public adjusters cost?

Public adjusters are compensated on a contingency basis, which means they are paid a percentage of the settlement they negotiate on behalf of your building. The percentage can vary depending on the type of claim and the adjuster's experience and qualifications. The standard fee is 10%, with a maximum of 12.5%. New York State regulates the compensation of public adjusters, with the New York Department of Financial Services (NYDFS) setting the maximum contingency fee. 

The contingency fee arrangement aligns the interests of the public adjuster with your co-op or condo building, ensuring that they work diligently to secure the highest possible settlement for the damages and losses.

Additionally, public adjusters in New York state are also required to be licensed by the NYDFS and must comply with other regulations such as a requirement to disclose the fee arrangement in writing, as well as a fiduciary responsibility to act in the best interest of the insured. They are also required to have E&O insurance. 

It is important to check with the State's Department of Insurance or a licensed insurance professional to confirm the laws and regulations regarding public adjusters in New York, as they can vary based on the type of claim, the type of policy and the adjuster's qualifications and experience.