In my previous article about finding the best deal on insurance, I touched on the idea that insurance, for the most part, is a necessary evil that plays an important part in our financial liabilities. The vast majority of consumers know why it is important to carry serveral insurance policies for their home and family. What most are unaware of is the important role adjustors can play in a settlement.

When an insurance policyholder files a claim, an adjuster will be brought in to verify that the coverage applies to the insurance policy, investigate liability for any damages and make restitution to the policyholder. In most cases, an insurance company will appoint a staff adjuster to the case and the policyholder will be offered a settlement based on the staff adjuster’s findings and recommendations. All too often, a policyholder will accept the settlement without dispute and feel they have been given the best deal possible. To understand why this is type of thinking can possibly cost a policyholder significant amounts of money owed to them, you must understand a few basic principles about insurance adjusters.

To begin with, there are three type of insurance adjusters:

• Staff Adjusters - Hired by the insurance company to investigate claims for the company.
• Independent Adjusters - Independent contractors hired to investigate claims for the insurance company
• Public Adjusters - Employed by the policyholder to negotiate with the insurance company

Both staff and independent adjustors have the insurance company to think of first when they are evaluating a claim. Independent adjusters often are retained with a commission based incentive which means they will get paid more if they are successful in getting the policyholder to agree to a lesser amount. Staff adjusters are working a different angle for the insurance company because a salaried adjuster will be subject to routine performance evaluations that can impact their salary and benefits.

A public adjuster is an an advocate for the policyholder in appraising and negotiating an insurance claim. Public Adjusters exist because of the a conflict of interest that arises when one person attempts to represent both sides of a settlement. Public adjusters are the only type of claims adjuster that can legally represent the rights of a policyholder during the claim process.

It is always a wise idea to let public adjuster review your claim even after you have settled with your insurer because most of the time a public adjuster can request that the claim be reopened to negotiation for more money if discrepancy is found.

The majority of policyholders are unaware that public adjusters even exist as an option to dealing directly with the insurance company representatives. A professional, conscientious public adjuster can make a tremendous difference in the amount of a policyholder’s settlement.

If you’re a policyholder and have filed a claim, don’t let your insurance company walk away with money they owe you. Make sure to consult a public adjuster before taking any offer.

This article is a true example of how shopping around for the best deal can save you a lot of money in the long run. Most consumers are all too typical and take the first solution or offer they receive on a product or service without shopping around for the most cost effective solution. That was true in this case…

A friend of mine who is an antique car collector was talking to me about problems he was having with the neighbors complaining about him having several cars parked in his driveway. His solution was to rent warehouse space for several of his vehicles at what seemed to him, the best price of $850 per month for the square footage he required. This translated into over $10,000 per year in costs that would not be deductible on his taxes and the price didn’t include the cost of insuring the vehicles.

My friend has quite a bit of open land on his property and I suggested that he look into constructing a steel building as a secondary garage to house the automobiles. I did a quick search on the internet for steel building manufacturers and I came across a company in Pennsylvania who specialize in metal steel buildings for commercial, agricultural, industrial, and residential building use. One of the most common use of their products is for homeowners who are car collectors and want to add additional garage space for their vehicles.

After my friend priced the cost of having the new garage addition completed versus the cost of renting a storage space, he realized that the option I had suggested would end up paying for itself in a few years. As an added benefit, the new structure will not only increase the value of his home but he will be able to use his homeowners insurance to cover the vehicles for a lot less money than taking out a new policy if he decided to rent warehouse space. Additionally, in most cases repairs can’t be deducted from your taxes but improvements and additions to your main home can usually be deducted in full in the year paid, otherwise, they can be deducted over the life of the mortgage.

Over the course of 10 years, my friend’s overall savings will amount to enough money to pay for his youngest daughters college tuition and now he will have all his precious cars on his own property and the neighbors will be happy.

Insurance is often thought of as a necessary evil because the majority of those insured never have the opportunity to utilize the benefits provided from being insured. However, when an accident or tragedy strikes, insurance can be a life-saver for most households. In th eUS and many other countries, insurance bills account for a significant portion of many consumers’ monthly household debits, so it would seem logical that finding the best deal on insurance is a critical portion of managing one’s personal finance. Whether it be automobile insurance, medical and health insurance, term insurance, life insurance, funeral insurance or income protection insurance, there are unlimited opportunites and possibilities for savings.

Over the next week, we will be covering insurance in a multi-part article detailing the different types of coverage available and the myriad of options for consumers based on our personal experiences in dealing with various insurors. We’ll be providing the details of our research to help pass along ideas, tips and tricks to save big on your insurance needs. If you’re thinking about purchasing insurance any time in the future, please stay tuned to this blog for the next few days as we unravel some of the myths and mysteries surrounding insurance.