Opinion Piece:

In the midst of Florida’s property insurance crisis, much discussion and legislative action have revolved around protecting insured individuals after significant storm damage to their properties. Unfortunately, public adjusters have been unfairly singled out as culprits by the insurance industry, some legislators, and regulators. However, a careful examination of the facts reveals that this blame is entirely misplaced.

It’s important to note that public adjusters are fully licensed professionals in Florida, as well as in 45 other states. They are the only licensed experts who fall under the regulatory control of each state’s insurance department and can legally assist policyholders in preparing and presenting property damage claims to their homeowner or commercial insurance carriers.

While hiring a public adjuster is not obligatory, it is entirely legal to do so. Safeguards, such as statutory and regulatory parameters, exist to protect the insured. These safeguards encompass post-catastrophe guidelines, rights of rescission, reasonable restrictions on solicitation hours, and more.

Amidst the ongoing discussion, there have been claims of public adjusters taking advantage of vulnerable insured individuals during times of crisis. However, both the Florida Association of Public Insurance Adjusters and the National Association of Public Insurance Adjusters have stringent codes of ethics that explicitly prohibit such misconduct. When public adjusters are referred to as “locusts” or when the industry advocates for consumer protection against unscrupulous public adjusters, it’s crucial to recognize that the available facts and statistics undermine these arguments.

For example, official statistics from June 1, 2020, to Dec. 31, 2021, confirm that there were 24,000 complaints in Florida against company adjusters or independent adjusters working for insurance companies, compared to a mere 200 complaints against public adjusters during the same period. A recent report from WFLA-TV in Tampa reveals that 4,700 claimants filed complaints against insurers following Hurricane Ian. Additionally, a significant investigation published on March 11, 2023, in The Washington Post uncovered that insurers knowingly reduced Hurricane Ian payments well below damage estimates, sometimes by over 80%.

Public adjusters, as licensed professionals subject to stringent regulation, serve as a valuable resource for commercial or personal policyholders, ensuring that insurance carriers provide full indemnity after a loss. That is precisely why insured individuals pay premiums. Blaming public adjusters for the perceived property insurance crisis in Florida is entirely unfounded.

Undoubtedly, reforms are needed, but these reforms should focus on the insurance industry itself—specifically addressing the practices they encourage and the adjusters they employ—rather than targeting the small group of professional public adjusters who tirelessly advocate for policyholders who have experienced property losses.

Brian S. Goodman, General Counsel of the National Association of Public Insurance Adjusters, sheds light on this matter, emphasizing the importance of accurate statistics and directing attention towards the real issues at hand within the insurance industry.