Editor's Note: Comments from FAIA Executive Vice PresidentScott Johnson published earlier this month in this News section(see "Public Adjusters and RCV – The Messenger and the Message")elicited a number of responses from people in the public adjusterindustry. He shares his views once again on the topic, in a letterhe sent to the Tallahassee Democrat in response to aneditorial piece in that publication from a publicadjuster.

Dear Editor:

In the opinion section of your July 7, 2010, edition, youpublished a piece written by a public adjuster named Lenny Bauman.He gave a great deal of very good advice on hurricane preparednessand insurance coverage, but…his closing paragraphs sounded morelike an advertisement and he omitted some material facts aboutfiling claims. As a public adjuster, he encouraged everyone to calla "public adjuster." He went on to provide contact information andto promote websites of trade groups to which he and other publicadjusters subscribe.

Your readers need to understand that their homeowners' insurancepremium already includes payment for claim service and post-claimconsultation and that hiring a public adjuster results in paying"again." After a claim, one of the first things a policyholdershould do is call their insurance agent. Many are "independent"and, while appointed by carriers, they hold licenses, which includestate-sanctioned authority to adjust claims and assistpolicyholders in receiving fair payment. Not only are theyprohibited from charging additional sums for this service, theirlocally-owned business and livelihood is based on customersatisfaction.

On the other hand, while public adjusters also want to satisfycustomers, they take one-fifth of the claim payment, sometimesmore, for having done so. This means policyholders pay twice-onceto the insurance company who has contracted with the local agent(and sometimes an independent adjuster) to assist and servicepolicyholders; and then another 20 percent minimum (about twice asmuch) to a public adjuster.

While disputes can arise, policyholders should be wary ofsigning documents that forfeit a portion of their claim payment.BOTTOM LINE: if you have a claim, follow the required procedures inyour policy. Call your insurance agent. And, by all means, followMr. Bauman's advice on protecting your property. But…never signaway any portion of what you deserve until you first exhaust theoptions you've already paid for.

Scott Johnson
Executive Vice President
Florida Association of Insurance Agents