Experiencing an unexpected disaster—whether it's damage to your home or business—can be life-altering and incredibly stressful. You trust that the insurance company you’ve diligently paid will come through for you in your time of need. But what happens when they don’t? Imagine going through the trauma of a loss only to be further distressed when your insurance claim is underpaid or even outright denied. The feeling of being short-changed by your insurer can add insult to injury, leaving you wondering what to do next.
That’s when the idea of hiring an insurance attorney may come into play. If you’ve reached a dead end with your insurance claim and feel like you aren’t being treated fairly, it may be time to explore legal options to ensure you get what you’re owed. But what exactly can an insurance attorney do for you? How much do they cost, and are they really necessary? Let’s dive into how an insurance attorney can help, what their services entail, and an alternative option to consider.
How Can an Insurance Attorney Help With Your Claim?
An insurance attorney is a legal professional who specializes in handling disputes between policyholders and insurance companies. When an insurer denies your claim, delays payment, or underpays, an attorney can step in to advocate on your behalf. Here’s how they can help:
- Review Your Policy: Insurance policies are notoriously complex, full of legal jargon that can be confusing for the average person. An attorney will carefully examine your policy to determine what is covered, what exclusions might apply, and how the insurance company may be trying to sidestep their obligations.
- Negotiate With the Insurer: Often, just the involvement of an attorney can motivate an insurance company to take your claim more seriously. Insurance attorneys are experienced in negotiating with adjusters, company representatives, and legal teams, pushing for a fair settlement.
- File a Lawsuit: If negotiations fail, an attorney can escalate the matter by filing a lawsuit against the insurance company. This legal action could lead to a settlement or a court ruling that compels the insurer to pay out the claim.
- Handle Bad Faith Claims: In some cases, insurance companies act in "bad faith," meaning they violate legal duties to deal with you fairly. An attorney can file a bad faith insurance claim, seeking damages that go beyond the original claim amount.
How Do Insurance Attorneys Get Paid?
Understanding how insurance attorneys get paid is important, especially since hiring a lawyer can be costly. Generally, insurance attorneys work on a contingency fee basis. This means that the attorney doesn’t get paid unless you win your case or reach a settlement. Here’s how the process works:
- Contingency Fees: Typically, insurance attorneys charge between 30% and 40% of the settlement amount. This payment is only made after you receive your settlement, so you don’t have to worry about paying out of pocket upfront.
- Court Costs and Expenses: In addition to the contingency fee, there may be other costs associated with filing a lawsuit or going to court, such as court filing fees, expert witness fees, and investigation costs. Some attorneys will deduct these costs from your settlement, while others may ask for these fees to be paid upfront.
Is an Insurance Attorney Really Necessary?
While an insurance attorney can be a powerful ally, the question remains: is hiring an attorney always necessary? In many cases, the answer may be no. It’s true that if your claim has been outright denied or if the amount at stake is significant, an attorney’s services could prove valuable. However, legal fees can quickly eat into any settlement you might receive.
If your case is more straightforward, or if you simply feel that your settlement was underpaid, there might be more cost-effective alternatives to consider before involving an attorney.
The Cost-Effective Alternative: Hire a Public Adjuster
In many cases, a public adjuster can handle the majority of what an insurance attorney would do—but at a fraction of the cost. Public adjusters are licensed professionals who represent policyholders in insurance claims, just like an attorney. For a more detailed explanation of what they can do, check out "What Is A Public Adjuster."
The biggest difference between an insurance attorney and a public adjuster is the cost. Rather than charging a high contingency fee, public adjusters are typically much more affordable. For example, Texas public adjusters’ fees are capped at 10% of the total claim settlement. This cap makes them a much more affordable option than attorneys.
A Cost Comparison: Attorney vs. Public Adjuster
To put things in perspective, let’s use an example to compare the cost of hiring an insurance attorney versus a public adjuster.
Imagine you suffered significant damage to your home, and your insurance company has offered you a $20,000 settlement. You believe the damage is worth much more, so you decide to hire a professional to help you get a fair settlement. Here’s a breakdown of how much it could cost you to hire an insurance attorney versus a public adjuster:
- Insurance Attorney: Let’s say the attorney charges a 35% contingency fee. If you end up receiving a settlement of $50,000 after their help, the attorney would take 35%, or $17,500. That leaves you with $32,500 after legal fees.
- Public Adjuster: A public adjuster in Texas, on the other hand, is capped at 10% of the claim. If the public adjuster helps you get the same $50,000 settlement, they would take 10%, or $5,000. That leaves you with $45,000—a significantly larger amount compared to what you’d walk away with after hiring an attorney.
Is a Public Adjuster the Right Choice for You?
If your claim involves complex legal issues or potential bad faith by the insurance company, hiring an attorney might be necessary. However, for many underpaid or denied claims, a public adjuster can handle the heavy lifting, negotiate with your insurer, and ensure you get the settlement you deserve—without draining your wallet with high legal fees.
Call Best Adjusters for Help With Your Claim
If you’re facing a frustrating experience with your insurance claim, don’t assume you have to go straight to an attorney. Contact Best Adjusters to help with your residential or commercial insurance claim. With extensive experience in insurance claims and a commitment to getting our clients the best possible outcome, we’ll work to ensure your insurance company treats you fairly. Our fees are transparent and capped at 10%, so you can rest assured that the majority of your settlement stays in your pocket.
Let Best Adjusters handle the tough negotiations while you focus on getting your life back on track. Contact us today for a free consultation, and let’s get your claim moving in the right direction!