Adjuster Offers Advice To Tornado Victims

Taking First Offer Can Be Costly, Says Expert
April 20, 2009 | Reported By Dennis Ferrier

MURFREESBORO, Tenn. – Murfreesboro residents are waiting for insurance settlements to start rebuilding or fixing their homes after a powerful EF-4 tornado devastated areas on April 10.

 

But some advocates for victims warn that it is a huge mistake to allow insurance companies to tell people what their home and belongings are worth.

 

Donald D. Smith, a Murfreesboro resident whose home was damaged by the storm does not know what it costs to reframe and re-insulate a home.

 

He does not know what drywall framers charge an hour and doesn't know what it will cost to match his bricks.

 

Unless affected residents are careful, they will not get reimbursed for what they lost in the storm.

 

Smith said he is unsure the value of what he has lost and what dollar figure he needs to make repairs.

 

"I don't really an idea. I'd say it would be over $100,000," said Smith.

 

He's not alone.
An insurance adjuster might have a good idea, but he is not working for the public.

"You can't let them be in charge?" asked reporter Dennis Ferrier.

 

"It's a clear conflict of interest," said Phil Breeden of First Call Adjusters. "It's not the insurance company's job to tell the homeowner what they're owed. The policy is pretty clear that it's the homeowner's responsibility to make their claim and tell the insurance company what their loss is. Now, if they don't do that, the insurance company will be happy to do that for them. But it won't be a favorable settlement."

 

Breeden is a licensed public adjuster who does not work for insurance companies. He works for the public, and that makes a big difference.
He said homeowners are often too dazed, disoriented and in a hurry to rebuild after a disaster. Taking the first offer can cost a person $100,000 or more, and he advises people not to be intimidated by the size and resources of insurance companies.

 

"Nobody wants to go to court. Nobody wins when that happens. I think the more important thing to remember is that the better the claim is prepared, and the more detailed it's documented, that's what makes a successful settlement," said Breeden.

 

For further proof that these public adjusters are successful, in 2006 various lobbyists for insurance companies tried to pass a law in Tennessee banning public adjusters because they were practicing law without a license.
That law failed, and Tennessee became the 39th state to allow licensed public adjusters.

News segment produced by WSMV, Channel 4, Nashville

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