Final answer:
A public insurance adjuster is a licensed individual who represents insured parties, helping them to secure fair settlements for claims of loss or damage. They offer expertise in the insurance claims process and act as an advocate for the policyholder against the insurance company.
Step-by-step explanation:
A public insurance adjuster is a professional who assists policyholders with the insurance claims process. Specifically, this adjuster works on the behalf of the insured, rather than the insurance company, to ensure that the policyholder gets a fair settlement from their insurance coverage following a loss or damage incident.
Contrary to working for insurance companies or being unlicensed individuals trying to adjust claims, these adjusters are licensed professionals who are paid a fee or percentage of the claim settlement for their services.
Public insurance adjusters are particularly helpful in instances where a claim is complex or the settlement offered by the insurance company is not satisfactory in the eyes of the insured.
Since insurance is a means for households and firms to protect themselves against significant financial losses, the role of a public insurance adjuster is to aid the insured in navigating through the intricacies of the claims process, leveraging their expertise to handle negotiations with the insurance company, and working towards an equitable resolution for the policyholder.
Giving guidance and negotiating claims, public insurance adjusters are essentially advocates for the insured, embodying the need to address the imbalance of information and the avoidance of moral hazard.
They perform detailed assessments of the damages, prepare claim documentation, and help expedite the insurance claim process for those who may not be familiar with how insurance policies and settlements work.