When Do You Need a Public Adjuster?

When Do You Need a Public Adjuster?

A public adjuster is an independent insurance specialist hired by an insured party — a condo or co-op board, management company, or building owner — to secure a claim that better reflects the work required to repair damages.

"Adjusters are very good, very knowledgeable, know the policies and know how to get things done," says Mackoul. "But there isn't always a need for them. There are instances when a claim is cut and [dried], you know what caused the damage, and the insurance company gives an estimate similar to that from a contractor. There may not be a need for a public adjuster at that point if there are no issues."

You need a public adjuster for large claims. "On a large claim, however, you may want someone to represent your interests," explains Mackoul. "Why take a chance if anything slips through the cracks? You also want to look at a public adjuster if there is [any] disagreement with the insurance company."

Steve Gutenplan, president of Affiliated Adjustment Group (AAG), a leading New York public adjuster, has experienced a wide range of complicated insurance claims during his company's 20-year history. In 2006, New York Yankees pitcher Cory Lidle's single-engine plane crashed into the Belaire Apartments condominium at 527 East 72nd Street. The plane struck a 30th-floor apartment, killing Lidle and his instructor co-pilot. A resident was seriously injured. The building — as well as personal property — was significantly damaged. In 2008, a high-rise crane collapsed at a Manhattan construction site at 303 East 51st Street into an adjacent apartment building. Seven people were killed, a townhouse was crushed, and six other buildings were significantly damaged. Evacuation orders were issued from the city for occupants of nearly 300 residential units across 17 buildings.

You need a public adjuster for any major crisis. In the aftermath of Hurricane Sandy in 2012, Gutenplan says his company received 5,000 claim requests in one week. To gauge the impact of Sandy on the insurance industry and public adjusters, AAG typically handles roughly 500 claims a year. "They ranged from regular run-of-the-mill claims that we get on a regular basis to $50 million claims," Gutenplan says of the Sandy insurance fallout.

During that crisis, AAG represented Battery Park City Authority, which oversees residential and commercial buildings on Lower Manhattan's West Side as well as a large number of cooperatives and condominiums across the city affected by the storm, and negotiated a number of post-Sandy insurance claims. "We had to turn away quite a bit of business," Gutenplan says.