This sounds like a ‘New York’ thing. I’ve heard of similar tactics used by tow-truck companies and lawyers.
A quick look around the internet will show you many stories (‘insurance adjuster ambulance chaser’ works as search terms). Many people assume that the adjusters work for the insurance company. They use phrases like “I’m here to help you with your claim.” The victims sign the contracts while they are still devastated and confused. When they realize what they have done its almost impossible to get out of the contract. They typically get 10-15% of your insurance claim off the top. Around here that means at least $30,000 to $40,000. And they get their money first. That might be needed if the insurance company is screwing you. But I wouldn’t want to give up that kind of money for nothing. But when you just had your life destroyed and some kind gentleman in a suit says “Just sign here and I’ll make sure everything goes smooth,” many people sign without thinking. In any other circumstance they wouldn’t sign away $40,000 without looking into it. And they have no idea that is what they are doing. There is no need to sign a contract with an adjuster before your claim is even started. Certainly not while the fire company is still at the house putting out the fire. There is time to research and get a reputable adjuster if you need one. The only reason to show up at the fire is to get the homeowner before they are thinking straight.
And I’m speaking as someone who has used a private adjuster. We had a claim for our flooded basement. They denied it as a natural flood and we don’t have (or need) flood insurance. But their inspector had seen and reported that it was a plumbing failure not a natural flood. A plumbing failure is covered. We had to re-file with an adjuster and they paid off our claim. He got 10%. Well worth it. But we were thinking clearly and took the time to find a reputable adjuster.
From what I can tell its a northeast thing that is spreading across the country. Especially in areas prone to natural disasters.
Wow. I’d never heard of this sort of stuff before. Thanks for the heads up - hopefully I’ll never be in a situation like this, but if it happens, now I know. Thanks!
I was sued recently. You know how I found out? I received 4 letters on the same day from 4 different lawyers who had minions checking the daily court filings. All four offered to help me resolve my case – the case I didn’t know existed because they beat the process server to my door by several days. This could conceivably be useful. Had I been trying to dodge service I had a few days advance warning that someone would be showing up at my door.
But it was useful in still another way too. It gave me a list of 4 local law firms not to do business with.
Tangentially related, but I was in a very minor fender bender a month or two ago. I was really surprised when all of the solicitations from law firms and chiropractor/physical therapy practices started to fill up my mailbox. I wondered how they got notice of the accident? There were no injuries, and all of the insurance companies involved were very professional.
When job hunting, a few of the companies behind these private adjusters mentioned that they were hiring. There was no salary, it was 100% commission (ie Sales) with the parent company pulling in money off of the top for doing… Nothing.
It seemed equivalent to door-to-door sales of vacuums, “waterless cookware”, and those scumbags who try to get you to change your Energy Provider to save money (the rates always jump sky-high before you can switch back).
For all I know, the people they hire may have been fired from those other jobs. I deleted the emails.
PS- for people in other regions who think “it can’t happen here”, thats what I thought several years ago when I saw “Rent-a-Centers” the first time while driving through another state:
“Rent furniture? Pay on it for years & years & (almost) never own it? Pay over time what amounts to an APR well over the 30% usury rate banned by law on loans and have your furniture repossessed if you fall behind on payments?
Wow, what Bozos got paid off in the state house to allow these thieves to operate openly? Its like an illegal Loan Shark operation that can advertise on radio. Glad the people in My state would never allow that.”
Now they are operating in my state… and according to this link, in all 50 states, Canada, and Mexico… :smack:
Same thing happened to me. Minor accident. No injuries. The other insurance company agreed to pay 100%. But within days I got about a dozen letters from lawyers. Each one had a copy of my accident report. Although those reports are public record the towns are allowed to charge a few to process the request. They must get copies of every accident report in the area. Even though the fee is small it adds up. They must pay a decent ammount in the off chance they’ll get a client out of it.
That is particular to New Jersey. Cannot begin to tell you the number of people who’d tell me how disgusted they were by the practice, and also relieved they didn’t have to drop dime at all for a copy of the accident report thanks to getting 30 letters each with a copy of the report, when I worked NJ auto claims.
Most of the rest of the country restricts access to the report to those whom are named in it. Quite a bit more sensible. Cuts down the ambulance chasing too.
Yes there is a law here called OPRA (open publlic records act) which makes that possible.