There is a lot of information in that paragraph, but it makes it clear that a public appraiser cannot participate in construction and a contractor cannot participate in the public adjustment in relation to the same claim or damage. A public appraiser is an insurance professional who works on behalf of the policyholder to resolve a claim. In other words, it protects homeowners from abusive contracting companies and stipulates that public appraisers (such as Ask An Adjuster) and lawyers are the only parties authorized to negotiate with the insurance company. Under Section 14039 (c), an insurance adjuster cannot receive payment from a contractor who obtains a contract for any claim they are adjusting.
When a policyholder goes to an attorney to help resolve a claim, it's not uncommon for the lawyer to hire a public appraiser because of their experience in these areas. While noting that the law favors the transferability of cases of action, the district court ruled that the assignment was not valid, since 33 Carpenters was not a licensed public appraiser. However, a public adjustment company can refer construction companies to their clients to rebuild their property. When there is a dispute with an insurance company about the amount of the agreement to which you are entitled, your best defense will be a public appraiser who can do all the necessary work.
Public appraisers are professionals who are licensed to work on behalf of the policyholder to resolve property damage claims. Cincinnati denied violating the policy and presented affirmative defenses that included that, upon obtaining the insured's allowance, 33 carpenters acted as unlicensed public appraisers, in violation of chapter 522C (201) of the Iowa Code, which made the allowance inapplicable. The Cincinnati Insurance Company held that 33 carpenters, a contractor who was the assignee of a hail and windstorm claim, acted as unlicensed public appraisers. Public appraisers are experts in determining the full extent and value of property damage and business interruption losses.
When you file a claim for a covered event, your insurance company appoints an insurance adjuster to investigate and adjust your claim.