Public adjusters’ fees related to a catastrophic loss would be limited to 10 percent of an insurance claim settlement under bipartisan legislation approved today by the General Assembly.
The bill, A-3519, is sponsored by Assemblywoman Nancy F. Muñoz and Assembly Republican Leader Jon Bramnick, both R-Union, Morris and Somerset.
“Homeowners and business owners deserve appropriate settlements after a catastrophe,” Muñoz said. “We can protect victims who have suffered a horrific loss and preserve fair compensation for the public adjusters who represent them.”
New Jersey has no cap in place and by some accounts adjusters charged as much as 50 percent after Superstorm Sandy.
“A cap shields policyholders from unscrupulous adjusters,” Bramnick said. “This will protect consumers and help them decide the best way to proceed when recouping significant losses to a home or business.”
The 10 percent cap limit will be in effect on claims made for one year after the catastrophic loss or natural disaster is declared by the President, Governor, Federal Emergency Management Agency, or N.J. Office of Emergency Management.
The legislation has bipartisan support from Assembly Democrats Linda Stender and Jerry Green, both D-Union, Middlesex and Somerset.
This is a press release from the NJ Assembly Repubican Office.