How Public Adjusters Calculate Co-op and Condo Claims
Oct. 23, 2015 — When something major goes wrong at a co-op or condo building — and we're talking pretty huge, such as a construction crane falling against a condo or a storm ripping the roof off a co-op — there's going to be more than one insurance company involved. For that reason, co-ops and condos may want to consider using a public adjuster — an independent insurance specialist hired by an insured party to secure a claim that better reflects the work required to repair damages.
Co-ops and Condos Are Unique
"Condos and co-ops are unique because there is going to be more than one insurance company involved and you need to refer back to the proprietary lease and bylaws and offering plan," agrees Steve Gutenplan, president of Affiliated Adjustment Group (AAG), a leading New York public adjuster. "There are going to be various sections that dictate who is responsible — what we call 'insurable interest.'"
Away from the headlines, Gutenplan explains a public adjuster's role is usually more mundane but the mission is still the same — navigating a policy and making sure an insurance claim payout totals an amount to which the insured is entitled.
How Claims Are Calculated
A public adjuster uses a pricing guide. The majority of insurance claims are calculated using a pricing guide for repairs that is pretty much an industry standard. Of course, one size does not always fit all. "Most companies use a standardized price guide called Xactimate," explains Bob D'Amore, president of the New York Public Adjusters Association, an approximately 100-year-old organization that brings together 164 of the roughly 400 licensed public adjusters in the state. "Xactimate is a [computer] program that has been written by the insurance services organization, which is a collaboration of insurance companies. It is done by zip code but it does not cover every contingency. Even at its best, it is low because it has been written for insurance companies."
Adds Gutenplan: "You can't just pop measurements into a computer and come up with a value. The cost of construction on Park Avenue and 72nd Street is very different to what it is on Grand Concourse in the Bronx. We bring in experts to prepare detailed estimates of the damages."