How Your 911 Phone Call May Cost You Thousands on a Fire Loss

Did you know there are people who listen in on the radio frequency used by the Fire Department on 911 phone calls? Be warned! You can expect a knock at your door shortly after making a call to 911 from various Public Adjusters, sometimes referred to as “ambulance chasers.” These Public Adjusters may tell you horror stories about your insurance company and how your insurance company will not treat you fairly or compensate you entirely for your damages. Beware as they may have one goal in mind - to take advantage of your misfortune in order to turn a profit.

Once a call is placed to 911 to report a fire, Public Adjusters competing with others in their line of work will race to be first-on-scene at the home, business or commercial building to take advantage of the situation. Public Adjusters may charge up to 40% of the total value of your claim for their services, costing helpless home, building and business owners thousands of unnecessarily-spent dollars. At 40%, they would charge $40,000 for every $100,000 you incur in costs for repairs and hotel stay, temporary housing or the cost to replace your personal or business property.

It may appear that these Public Adjusters travel in packs. Thirty of them may show up at a home or building immediately after the 911 call is made and for weeks afterward with different approaches and various sales pitches to get the property owner to hire them. They may blatantly lie to the property owner and tell them they were sent by the the insurance company (in an attempt to get information about the insurance company the building owner is insured with, what type of policy they have, the amount of their policy limits, their policy deductible and their insurance policy or claim number). In some cases, they have been known to offer the property owner or property manager an envelope full of cash for information or get them to sign with them for their services.

Public Adjusters often refer their own contractors who: 

• May likely not be insured, licensed or bonded
• May not pull permits or follow proper procedures
• May not finish the job after receiving a sizable down payment to begin repairs
• May cut corners in order to rake in even more cash for themselves (like replace plaster with drywall and not credit the owner the substantial price difference of the material & labor cost, not remove all affected materials in an attempt to save on construction costs, not replace insulation in the attic or walls, not hire a licensed abatement contractor to remove of and dispose of materials that test positive for lead or asbestos or install lower grade or not equivalent quality of materials than were initially in the home or building)

The Public Adjuster will likely tell you that you don’t have to pay them anything for their services and that the payment they receive will come from the increase they are able to get your insurance company to pay you. Regardless of whether they are able to increase the value of the claim or not, if you hire them, you are on the hook to pay them the percentage outlined in their contract. Ultimately, this could mean that you will receive less money than you would have been entitled to and that you don’t have enough money to repair all of the damage to your home or building or to replace your damaged business or personal property.

Most people don’t know that the adjuster sent by your insurance company will provide the same services as a Public Adjuster at no cost to the home or building owner. The difference between the two adjusters is that the Public Adjuster solicits and works for the general public who then pays them for their services. 

As an informed property owner, you should know that you have 72 hours to cancel a contract in the State of California, which is why the Public Adjuster may offer to report a claim to your insurance company on your behalf, while offering to put you up in a hotel or offer to send you and your family on a vacation for 3-days or more. In doing so, their intent may be that your insurance carrier can’t get a hold of you during the time period in which you can legally cancel your contract with them. They may fear that your insurance company’s adjuster will inform you about how Public Adjusters get paid or explain to you how the insurance company is regulated by The California Department of Insurance to follow the proper claims process.

Property owners need to know their legal rights - Legally, property owners can ask Public Adjusters to vacate their property , and can even call the police if they won't leave or continue to harass the owner. The California State Contractor’s License Board’s Website recommends not paying more than 10% of the total contract price or a $1,000, whichever is less, as a down payment to any contractor.

The Bottom Line:

If you ever have to call 911 to report damage to your home or building due to a fire, make sure to give your insurance company a fair chance. If you feel you aren't bring treated fairly, contact The California Department of Insurance to initiate an investigation of your insurance company’s handling of your claim to ensure you are being treated fairly. Don't make a hasty decision while you are still traumatized from losing your home, pet, family member, business or property due to a fire.

If you feel confident that hiring a Public Adjuster is an option for you, make sure to check the California Department of Insurance’s website (www.DOI.CA.gov) to verify they are licensed and bonded and have no valid complaints filed against them. With so much information available to the public via the internet, you may also want to run a search on the Public Adjuster’s name or their company’s name to make sure others have had a good experience after retaining their services. As a final precautionary measure, you may also want to conduct research to confirm that the Public Adjuster has no criminal history of committing insurance fraud.

Specialized Outsource Solutions is here to insure a no hassle, worry-free, and trustworthy solution for you by referring contractors who are licensed, bonded, insured and believe in quality workmanship. SOS can refer a reputable contractor that specializes in cleaning the black soot residue from your home or building as well as your business or personal property and that also specializes in getting rid of smoke odor that can linger after a fire. Rely on SOS and call us at 1-888-589-1868 or request referral of a reputable contractor from our website.