Insurance companies have always marketed themselves by portraying their companies as honest, ‘charitable’ organizations ready to help you in case of any peril. Although they are helpful in protecting assets, they are still businesses. That means their main goal is making profit and staying in business. The only way they can do this is ensuring that the pay outs are far much lower than the overall premiums being paid.
One of the tricks insurance companies use to do that is introducing loopholes to help them avoid compensating some of their clients when claims are filed. Fortunately for them, most people do not pay attention to the ‘fine print’ before signing insurance papers. They therefore willingly commit themselves to insurance contracts without a comprehensive understanding of the terms and prospective ‘loopholes’.
So, what happens when you file for a claim and you are shocked to find out that you cannot be compensated because of a particular loophole? That’s exactly where public adjusters come in. They challenge the insurance companies on the loopholes to negotiate for a fair compensation. Some of the common loopholes they deal with include:
Some people lose their property through double tragedies. For instance, your house may be hit by a hurricane and still get swept up by floods. In such a case, some insurance companies can only compensate you if both tragedies are covered regardless of the sequence in which the tragedies occurred. Therefore, if you were covered for hurricanes but not floods, your claim will probably be turned down. Public adjusters however, can negotiate your claim to help you avoid falling victim to such a loophole.