ADJUSTERSINTERNATIONAL.COM • (800) 382-2468 • INFO@ADJUSTERSINTERNATIONAL.COM 7 6 ADJUSTINGTODAY.COM public adjuster is retained to evaluate and advocate for the insured’s entire property claim. A contractor is paid to perform a particular scope of work. When the same person controls both functions, the insured may lose independent advice about what the claim is worth, what work is necessary, whether a contractor’s estimate is reasonable, and how claim proceeds should be allocated. This is why some states have dual-capacity prohibitions which provide that a person cannot hold a license as a public adjuster and be a restoration contractor.6 The conflict is not limited to dishonest actors. A contractor may sincerely believe that a larger repair scope is justified. But if the contractor’s compensation increases as the approved scope increases, the contractor’s advice is not independent. Conversely, an inflated building estimate could consume limits or proceeds that might otherwise be available for other covered categories of loss. The insured needs a representative whose financial interest is aligned with the insured’s overall recovery, not a vendor whose interest is tied to one portion of the loss. Dual-capacity prohibitions also protect contractors who operate properly. Contractors who stay in their lane should not have to compete against businesses that promise to waive deductibles, control claim negotiations, inflate estimates, or market themselves as insurance specialists without accepting the duties and oversight imposed on licensed public adjusters. Clear enforcement supports a fairer marketplace for both construction services and claim representation. The integrity of the property insurance system The issue extends beyond any single claim. Property insurance depends on a system in which policy language is applied as written, deductibles are honored, repair costs are reasonably established, and claim settlement is handled by people authorized to perform that role. When unlicensed actors control claims for their own financial benefit, costs rise, disputes multiply, and confidence in the system erodes. Policyholders are not powerless in that system. They have access to licensed public adjusters who understand property damage, insurance policy language, documentation, valuation, and negotiation. They also have access to attorneys when legal representation is needed. The point is not to leave insureds alone against insurers. The point is to ensure that the person advocating for the insured is qualified, regulated, and free from the contractor’s conflict of interest. That is why the line between repair contracting and public adjusting should be recognized and respected by everyone involved in a property claim. Contractors serve policyholders best by providing accurate, transparent, and welldocumented repair information. Public adjusters serve policyholders best by independently evaluating and advocating for the claim. Insurers serve the system best by recognizing proper representatives and refusing to reward unlicensed claim handling. In conclusion The promise to simply “handle everything” after a loss can sound incredibly efficient, especially to a property owner who is exhausted, displaced, or overwhelmed by the disaster. But this perceived efficiency cannot come at the expense of independent advice, proper licensing, and fundamental consumer protection. It is vital to remember that a contractor’s license is fundamentally different from a public adjuster’s license, and signing an assignment of benefits is not a blanket permission slip to settle an insurance claim. The 2024 Stonewater decision firmly reinforces what regulators and courts have been saying for years: public-adjuster statutes exist specifically to regulate the professional role of representing an insured individual during a claim settlement. These laws absolutely do not prevent contractors from discussing necessary repairs or estimating costs. Rather, they prevent contractors from using their repair work as a convenient platform to control, negotiate, or settle claims without the rigorous qualifications, ethical duties, and safeguards required of licensed public adjusters. Ultimately, a license to adjust is a mandate to protect the insured’s interests through independent, conflict-free advocacy rooted in professional responsibility. That regulated role should never be treated as a loophole, a convenient marketing slogan, or a contractor’s shortcut to insurance proceeds. “A contractor’s license is not a public adjuster’s license, and an assignment of benefits is not permission to settle an insurance claim.”
RkJQdWJsaXNoZXIy NjIxNjMz