The net impact of this cap will be the same impact that all price caps have, i.e., a government-induced shortage of public adjusters and government-induced delays in getting claims adjusted.
If a public adjuster can make only 10% by traveling 800-1,000 miles to help with Katrina claims, what’s the profit incentive? How does that compare with what they make staying in FL?
If I have a claim and want a public adjuster, I now have fewer to chose from, because the government has induced a shortage, and I may have to wait longer to get my property adequately repaired!
Shouldn’t the injured party be free to take the risks involved with paying a public adjuster whatever fee they agree to? If I want my property claim adjusted quickly, so I can affect repairs now instead of waiting, and I want to pay more for that privilege, why is it “right” for the state of FL to step in and say “no?”
This stance towards so-called “gouging” results in delays for all manner of help after the storm, including cleanup of debris, transport of generators and plywood, etc.
An even better idea: Lawyers’ fees should be capped at 10%. They are more leech-like than public adjusters. With less incentive, maybe they’ll file less number of frivolous lawsuits, and our premiums won’t be as high.
In my 20 years in this industry I have NEVER seen a claim get settled faster with a public adjuster – Payments are seldom delayed during a CAT for an insured loss in fact, carriers are writing checks and settling claims in full immediately in many cases. Repairs are delayed during CATS due to lack of qualified and reputable contractors.
I beg to differ. I have seen MANY claims delayed due to the lack of experience of many of the first responder insurance adjusters. Their failure to understand even basic coverage issues, let alone their lack of knowledge of basic construction puts them at a disadvantage. The claims then have to be argued with individuals who are clearly not adequately trained and thus have no authority to settle claims fairly. Many times, inexperienced and traumatized insureds either give up and accept whatever the company gives them in their desperation to try to begin repairs.. or they go out and find themselves an attorney that will ultimately charge the carrier for their fees and costs when they file a lawsuit.
Insurance adjusters should be happy when a public adjuster who is licensed and trained comes on board. We make your lives alot easier. Unfortuntely, many insurance adjusters think of us as “the enemy” rather than as the professionals we are. Trained public adjusters have much more experience than the first responder insurance adjusters that are sent out primarily to make sure that they are not accused of unfair trade practices (i.e. claim delay).
Why doesn’t the insurance industry make it more difficult to get an adjuster’s license or require some internship or other on the job training. It seems to me that it would be in the interest of the public for them to do so. Instead they try to make the playing feel level by keeping trained public adjusters from offering any kind of dispute to these trainees by cutting off our fees and making us all think twice before we make a trip to help affected insureds.
It is simply not cost effective for us sometimes particularly when the words “price gouging” and public adjuster are used in the same sentence by the State’s Insurance Commissioner. The director of the entity that licenses us in the first place.
The only reason the commissioner is capping fees is because he does not want the Public Adjusters to get the money that is coming to the homeowner. I do not see the commissioner capping the amount of fees that the independent adjuster can charge the insurance company. I do not see him capping the amount that the attorneys can charge. It is the insurance companies that are dictating to the State of Florida. They do not want the Public adjusters around because it will cost them more money to settle the claims. The people of Florida will wake up and start smelling the roses. When they do the courts will be loaded with lawsuits and the state senators might be in the umemployment line.
To the people of Florida, I say, fight for your rights and fight to get what is rightfully yours under the policy that you have paid your hard earned money for.
While it’s nice to see “ins exec” and “florida adjuster” weighing in *specifically* on the Public Adjuster issue, I want to keep the broader focus on the whole concept of “price gouging.”
I want to explain *why* I say that *price gouging* would benefit the victims, so…y’all bear with me here…
Let’s pretend for a moment that I don’t have any responsibility that keeps me here at the hacienda. Let’s say I see this disaster and the first think I think of is:
“hey, I’ll take some money, run over to the home depot, but 4 generators and 8 chain saws, load ’em onto Bessie and drive until I start seeing storm damage. Then, I’ll drive into the nearest town and sell all that stuff. I’ll make some money, come back, and do it again.
HEY! I made some money off that run. Now, I can use that extra money to buy a TRAILER, and then I can haul 10 generators, 12 chain saws, and 8 barrels of gasoline!
HEY! I MADE EVEN MORE MONEY! NOW … I’ll recruit my buddies over here, buy them a trailer, and we’ll haul even MORE stuff into the damaged areas!
Now, I’m making money. Others SEE that I’m making money. What do you think they do? THEY START DOING THE SAME THING!
Now, when they get there and ask $200 for five gallons of gas, they CANNOT get it – because the victims of the disaster KNOW that they can wait for ME, because I’m coming back with five gallon gas cans that I’m selling for $150…or wait for some of my buddies friends who are now selling their five gallon cans of gas for $100…or some of THEIR buddies friends who will sell their five gallon cans of gas for $80 … and so on and so on.
This is the way the MARKET works – Prices can be “gouged” because the items are SCARCE. When profit can be made by offering the scarce items, more and more people will try to get those scarce items into the area.
YES. This DOES mean that the wealthy get FIRST access – but you know what? THAT IS HOW IT IS IN LIFE IN ALL THINGS.
Think microwaves and VCRs, folks.
This is HOW “the market” works.
Why in the world should we PREVENT “the market” from working NOW – in CRISIS MOMENTS is when it works the very best of all…
Yet everywhere I see and hear whines from those OUTSIDE the damaged areas that “price gouging” should be prosecuted harshly.
I submit that you should ask those in the damaged areas if they would prefer to sit there with NOTHING or pay $500 for a chain saw and gasoline – or $200 for a tent and two days of food.
I will *never* believe that those people would say â€Åâ€ŔNO! WE WANT TO BE HUNGRY, THIRSTY, AND WITHOUT SHELTER OR WAYS TO START CLEAN UP WHILE WE WAIT FOR THE STATE!â€ÂÂÂ
Do YOU? Honestly?
It makes me very very sad, because I KNOW that there is HELP that is NOT GOING…because going would land them in jail.
I agree with you on the application of the ‘supply & demand’ principle. But why did you think it should apply to Florida? You didn’t know we are a socialist state? Pay less and get more?
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
The net impact of this cap will be the same impact that all price caps have, i.e., a government-induced shortage of public adjusters and government-induced delays in getting claims adjusted.
If a public adjuster can make only 10% by traveling 800-1,000 miles to help with Katrina claims, what’s the profit incentive? How does that compare with what they make staying in FL?
If I have a claim and want a public adjuster, I now have fewer to chose from, because the government has induced a shortage, and I may have to wait longer to get my property adequately repaired!
Shouldn’t the injured party be free to take the risks involved with paying a public adjuster whatever fee they agree to? If I want my property claim adjusted quickly, so I can affect repairs now instead of waiting, and I want to pay more for that privilege, why is it “right” for the state of FL to step in and say “no?”
This stance towards so-called “gouging” results in delays for all manner of help after the storm, including cleanup of debris, transport of generators and plywood, etc.
An even better idea: Lawyers’ fees should be capped at 10%. They are more leech-like than public adjusters. With less incentive, maybe they’ll file less number of frivolous lawsuits, and our premiums won’t be as high.
In my 20 years in this industry I have NEVER seen a claim get settled faster with a public adjuster – Payments are seldom delayed during a CAT for an insured loss in fact, carriers are writing checks and settling claims in full immediately in many cases. Repairs are delayed during CATS due to lack of qualified and reputable contractors.
I beg to differ. I have seen MANY claims delayed due to the lack of experience of many of the first responder insurance adjusters. Their failure to understand even basic coverage issues, let alone their lack of knowledge of basic construction puts them at a disadvantage. The claims then have to be argued with individuals who are clearly not adequately trained and thus have no authority to settle claims fairly. Many times, inexperienced and traumatized insureds either give up and accept whatever the company gives them in their desperation to try to begin repairs.. or they go out and find themselves an attorney that will ultimately charge the carrier for their fees and costs when they file a lawsuit.
Insurance adjusters should be happy when a public adjuster who is licensed and trained comes on board. We make your lives alot easier. Unfortuntely, many insurance adjusters think of us as “the enemy” rather than as the professionals we are. Trained public adjusters have much more experience than the first responder insurance adjusters that are sent out primarily to make sure that they are not accused of unfair trade practices (i.e. claim delay).
Why doesn’t the insurance industry make it more difficult to get an adjuster’s license or require some internship or other on the job training. It seems to me that it would be in the interest of the public for them to do so. Instead they try to make the playing feel level by keeping trained public adjusters from offering any kind of dispute to these trainees by cutting off our fees and making us all think twice before we make a trip to help affected insureds.
It is simply not cost effective for us sometimes particularly when the words “price gouging” and public adjuster are used in the same sentence by the State’s Insurance Commissioner. The director of the entity that licenses us in the first place.
The only reason the commissioner is capping fees is because he does not want the Public Adjusters to get the money that is coming to the homeowner. I do not see the commissioner capping the amount of fees that the independent adjuster can charge the insurance company. I do not see him capping the amount that the attorneys can charge. It is the insurance companies that are dictating to the State of Florida. They do not want the Public adjusters around because it will cost them more money to settle the claims. The people of Florida will wake up and start smelling the roses. When they do the courts will be loaded with lawsuits and the state senators might be in the umemployment line.
To the people of Florida, I say, fight for your rights and fight to get what is rightfully yours under the policy that you have paid your hard earned money for.
While it’s nice to see “ins exec” and “florida adjuster” weighing in *specifically* on the Public Adjuster issue, I want to keep the broader focus on the whole concept of “price gouging.”
I want to explain *why* I say that *price gouging* would benefit the victims, so…y’all bear with me here…
Let’s pretend for a moment that I don’t have any responsibility that keeps me here at the hacienda. Let’s say I see this disaster and the first think I think of is:
“hey, I’ll take some money, run over to the home depot, but 4 generators and 8 chain saws, load ’em onto Bessie and drive until I start seeing storm damage. Then, I’ll drive into the nearest town and sell all that stuff. I’ll make some money, come back, and do it again.
HEY! I made some money off that run. Now, I can use that extra money to buy a TRAILER, and then I can haul 10 generators, 12 chain saws, and 8 barrels of gasoline!
HEY! I MADE EVEN MORE MONEY! NOW … I’ll recruit my buddies over here, buy them a trailer, and we’ll haul even MORE stuff into the damaged areas!
Now, I’m making money. Others SEE that I’m making money. What do you think they do? THEY START DOING THE SAME THING!
Now, when they get there and ask $200 for five gallons of gas, they CANNOT get it – because the victims of the disaster KNOW that they can wait for ME, because I’m coming back with five gallon gas cans that I’m selling for $150…or wait for some of my buddies friends who are now selling their five gallon cans of gas for $100…or some of THEIR buddies friends who will sell their five gallon cans of gas for $80 … and so on and so on.
This is the way the MARKET works – Prices can be “gouged” because the items are SCARCE. When profit can be made by offering the scarce items, more and more people will try to get those scarce items into the area.
YES. This DOES mean that the wealthy get FIRST access – but you know what? THAT IS HOW IT IS IN LIFE IN ALL THINGS.
Think microwaves and VCRs, folks.
This is HOW “the market” works.
Why in the world should we PREVENT “the market” from working NOW – in CRISIS MOMENTS is when it works the very best of all…
Yet everywhere I see and hear whines from those OUTSIDE the damaged areas that “price gouging” should be prosecuted harshly.
I submit that you should ask those in the damaged areas if they would prefer to sit there with NOTHING or pay $500 for a chain saw and gasoline – or $200 for a tent and two days of food.
I will *never* believe that those people would say â€Åâ€ŔNO! WE WANT TO BE HUNGRY, THIRSTY, AND WITHOUT SHELTER OR WAYS TO START CLEAN UP WHILE WE WAIT FOR THE STATE!â€ÂÂÂ
Do YOU? Honestly?
It makes me very very sad, because I KNOW that there is HELP that is NOT GOING…because going would land them in jail.
I agree with you on the application of the ‘supply & demand’ principle. But why did you think it should apply to Florida? You didn’t know we are a socialist state? Pay less and get more?