Louisiana New Law: Allows for Public Adjusters

A new law, signifying a significant development for policyholders in Louisiana, has passed, forbidding property insurance policies from containing provisions that deny an insured individual’s right to hire a public adjuster. Before the introduction of this new law, insurance policies with anti-public adjuster clauses prevented policyholders from hiring a public adjuster. The legislation aims to provide all policyholders and businesses with greater control and expertise in navigating insurance claims. 

On June 12, 2023, Louisiana Governor John Bel Edwards signed into law a bill from Sen. Royce Duplessis, D-New Orleans, and Rep. Ray Garafalo, R-Chalmette, that prohibits insurance carriers from inserting anti-public adjuster clauses into property insurance policies. The new law (SB156) in Louisiana will take effect on August 1, 2023, and allow all policyholders to hire public adjusters.

Benefits for Policyholders:

Removing the anti-public adjuster clauses is a significant win for policyholders in Louisiana. Here are some key benefits that policyholders can expect:

Expertise and Representation: 

Licensed professionals with in-depth knowledge of insurance policies and claims processes, public adjusters actively operate. They can assess the full extent of damages, and strive for fair compensation per the policy.

Time & Stress Reduction: 

Navigating an insurance claim can be a complex and time-consuming process. By engaging a public adjuster, policyholders can offload the burden of handling paperwork, documentation, and negotiations. This allows them to focus on other important aspects of recovery, such as restoring their property or business.

Maximizing Claim Settlements: 

Public adjusters skillfully value losses accurately and ensure fair compensation for policyholders. They can help policyholders avoid potential underpayments or claim denials, leading to maximized settlements.

Rules and Regulations for Public Adjusters in Louisiana:

While the new law in Louisiana enables policyholders to hire public adjusters, it’s important to understand the existing rules and regulations governing their operations. Here are some key points to note:


Public adjusters in Louisiana are required to obtain a license from the Louisiana Department of Insurance (LDI). Additionally, the licensing process involves meeting certain criteria, including background checks and the successful completion of an examination.

Fee Limitations: 

Public adjusters charge fees for their services, typically calculated as a percentage of the insurance claim settlement. In Louisiana, these fees are regulated and should conform to state guidelines. Policyholders should discuss fee arrangements with the public adjuster before signing any contract.

Contractual Agreements: 

Public adjusters must provide written contracts to policyholders, outlining the terms and conditions of their services. The contract must clearly state the fees, scope of work, and any additional expenses that policyholders may incur during the claims process.

Prohibited Activities: 

Public adjusters are prohibited from participating in any deceptive or fraudulent practices. Furthermore, they have a fiduciary responsibility, must act ethically and in the best interests of the policyholders they represent. Violations of these regulations can lead to disciplinary actions by the LDI.

Louisiana’s new law granting policyholders the ability to hire public adjusters is a significant step toward empowering individuals and businesses when dealing with insurance claims. With the expertise and representation provided by public adjusters, policyholders can expect a smoother and more favorable claims experience. By leveraging this new legislation, policyholders can navigate the complexities of the insurance world with confidence, knowing they have dedicated professionals on their side.

Premier Claims Louisiana #765044


Unlocking Opportunities with the Premier Purchase Program

The real estate market is full of opportunities, particularly in commercial sectors, yet navigating it can be complex. If you are an investor looking to buy property, or a broker trying to close a deal swiftly on behalf of your client, the Premier Purchase Program offers a unique and advantageous solution.

What is the Premier Purchase Program?

The Premier Purchase Program is a strategy that involves the current property owner filing a claim on the property with their insurance carrier, then at the close of sale, assigning that claim over to the new property owner. This unique approach creates leverage in the transaction and opens up new possibilities for commercial real estate brokers and investors.

Benefits of the Premier Purchase Program

1. Flexibility in Transactions

The program introduces a level of flexibility that benefits both parties in the real estate deal, making transactions smoother and more attractive. Sellers and their asset team can avoid the complexity of a commercial claim, while offering their property at market value with claim opportunity, making the offering more attractive to buyers. On the other hand, investors considering the purchase of commercial property can request an insurance policy from the seller and an inspection from our team. With an inspection and a policy review from our team, we can advise if there is a claim opportunity that could be transferred to the buyer at close.

2. Leverage in Negotiations

Through this innovative method, leverage is created that can assist in selling a property more quickly. This can be especially valuable in competitive markets that are more prone to significant weather events, such as hail or wind, that can cause property damage. For commercial brokers providing an offering memorandum to the market, our team can provide a thorough inspection of the property, a full-review of the insurance policy and summarize a comprehensive damage estimate, the potential claim settlement and our recommendations to be included in the offering for potential buyers.

3. Smooth and Efficient Process

The Premier Purchase Program is distinguished by our team’s comprehensive claim management and guidance through each step. Offering the seller and brokers the ability to enhance the asset’s appeal through asset repair & restoration for the buyer without the significant financial obligation. For the buyer, this means acquiring a property that will be restored that improves the value of the asset. By providing expertise and fostering collaboration, our team simplifies and enhances the complex process of commercial real estate insurance claims for all parties involved prior to listing the asset, while under contract, and after the sale is finalized.

4. Avoiding Hassles with Claims

The Premier Purchase Program streamlines claims by handling all offering, inspection, and documentation needs for the seller and their broker. Our team ensures that every detail is attended to, removing potential obstacles from the process. For buyers, we don’t just facilitate the transaction; we provide expert guidance and meticulous coordination to restore and enhance the property’s value. In essence, we alleviate challenges, turning complexities into smooth, value-added experiences for both parties.

5. Enhanced Value through Claims 

Commercial investors often seek properties that align with their investment goals, focusing on factors such as location, growth potential, return on investment, occupancy rates, and the ability to enhance value through improvements or management strategies. With the Premier Purchase Program, our team provides essential insights and can serve as valuable selling points, adding to the property’s appeal and potentially increasing its market value after closing through restoration and repairs for minimal financial obligations.

6. Increased Opportunities for Investors and Sellers

The program opens up new avenues for both investors and sellers, providing unique ways to approach transactions and realize potential value. The Premier Purchase Program adds an additional parameter to determine an asset’s market value, and provides peace of mind with our expert guidance & representation throughout the process.

Navigating the Premier Purchase Program: Our Process Explained

The Premier Purchase Program is a meticulously designed solution for commercial real estate transactions involving properties with potential storm or other damage. Through this program, Premier Claims expertly navigates all stages of the process, providing full policy review, property inspection, and coordination between sellers and buyers. Our seamless approach contributes to a value-added, transparent, and smooth transition of the asset, all while aligning with the goals of both parties. Here’s how we make it happen:

1. Policy Review and Property Inspection

Premier Claims conducts a comprehensive review of the seller’s insurance policy for the asset and carries out an in-depth inspection to accurately assess the property’s condition.

2. Agreement Execution with Claim Covenant

Once damage is identified and a buyer is secured, claim covenant language is integrated into the purchase agreement, which both parties agree to execute.

3. Filing the Insurance Claim

Premier Claims initiates an insurance claim based on the detailed findings. This critical step is completed before the closing of the asset.

4. Assignment of Claim Benefits

During closing, the seller formally assigns the claim benefits to the buyer, facilitating a seamless transfer of claim benefits.

5. Joint Inspection with Insurance Carrier

Our skilled team collaborates with the seller’s insurance carrier, conducting a joint on-site inspection to present our findings, promoting alignment and validation.

6. Final Settlement and Fund Transfer

Upon reaching a final claim settlement, the funds are released and transferred to the buyer. They then have full discretion to use these funds for the restoration and repair of the asset, enhancing its value and potential.

The Premier Purchase Program is more than just a transaction method; it’s a comprehensive service where our team takes charge of handling every aspect of the process. We work closely with both the seller and the buyer, as well as the real estate agents involved, guiding them through each step.By fostering collaboration and providing expertise at every stage, our team turns the complex process of buying and selling commercial real estate into a smooth and rewarding experience for all parties involved. If you’d like to learn more about this program, we encourage you to reach out to our team today.


Understanding Recoverable Depreciation: RCV and ACV Policies Explained

Understanding your insurance policy can be daunting, especially when faced with complex terms like “recoverable depreciation.” For numerous policyholders, this idea might seem unfamiliar. Yet, it’s crucial for both Replacement Cost Value (RCV) and Actual Cash Value (ACV) policies. In this guide, we’ll cover recoverable depreciation, differentiate RCV from ACV, clarify payment timing for recoverable depreciation, and share key info every policyholder should grasp about it.


What is Recoverable Depreciation?

This term is often overlooked but vital in the insurance claim process. To fully understand this concept, let’s break down what it entails: Recoverable Depreciation refers to the difference between the Replacement Cost Value and the Actual Cash Value of a damaged item. The policyholder can “recover” the insurance carrier’s withheld amount after documenting repairs. Certain policies don’t pay non-recoverable depreciation to the policyholder. Understanding whether your policy includes recoverable or non-recoverable depreciation is vital when filing a claim.

Calculating Recoverable Depreciation

Understanding how to calculate Recoverable Depreciation can help policyholders gain insight into the amount they can reclaim.

    1. Determine the Replacement Cost Value (RCV): This is the total cost to replace or restore the damage with similar quality and type. A licensed and experienced public adjuster, estimator or contractor are all professionals that can determine the replacement cost value of damage to your property based on current costs of labor and materials.
    2. Find the Recoverable Depreciation: The Recoverable Depreciation is the difference between the RCV and ACV. Traditionally, depreciation is calculated based on the item or the product’s useful life. For example, say you purchase a washer & dryer for $2,100 with an estimated useful life of 15 years. By dividing the total cost at the time of purchase ($2,100) by the estimated lifespan (15 years), it would determine the washer & dryer to depreciate by $140 each year. Therefore, if after 5 years the laundry units ACV would be $1,400 (5 years x $140 = $700 in depreciation over 5 years. The initial purchase price $2,100 minus the $700 in depreciation = $1,400). However, this is just a very general example. When it comes to property damage and filing an insurance claim, each insurance carrier, circumstance and loss are unique and the calculation of depreciation may vary.
    3. Calculate the Actual Cash Value (ACV): This involves determining the RCV and then subtracting the depreciation based on age, wear and tear, or other factors. Thus, Actual Cash Value (ACV) = Replacement Cost Value (RCV) – Depreciation.

Impact of Inflation

Inflation is an often-overlooked factor that can significantly impact Recoverable Depreciation. As the general price level of goods and services rises over time, the cost of replacing or repairing damaged property can also increase. This inflationary effect results in the Replacement Cost Value (RCV) of an item being potentially higher today than when the policy was purchased or just a few years ago. Therefore, if we calculate Recoverable Depreciation using outdated cost estimates, it might not accurately represent today’s market’s actual replacement cost. Policyholders should be aware of this dynamic and consider working with insurance professionals who actively monitor inflation trends and update valuations accordingly. Understanding and accounting for inflation in the calculation of Recoverable Depreciation ensures a more accurate and fair settlement, aligning the claim payout with the real-world costs of repair or replacement.


RCV vs. ACV: What’s the Difference?

Replacement Cost Value (RCV)

Replacement Cost Value (RCV) policies cover the cost to replace damaged or lost property without deducting depreciation. In other words, if an item is destroyed, the insurance company pays the cost to replace it with a brand-new item of like kind and quality.

Actual Cash Value (ACV)

Actual Cash Value (ACV) policies, on the other hand, take into account depreciation. The insurance company will pay for the cost to replace the item, minus a deduction for the wear and tear or aging of the item. Essentially, ACV pays for what the item was worth at the time of the loss.

When does the policyholder receive payment for recoverable depreciation?

Initial Payout

After a claim is approved, the insurance carrier usually pays the ACV first, holding back the recoverable depreciation.

Final Payout

Insurance companies generally pay recoverable depreciation after completing repairs or replacements and providing proper documentation.

Factors Affecting Payment

How to Claim Recoverable Depreciation

Policyholders with a Replacement Cost Value (RCV) policy must actively reclaim recoverable depreciation. This process involves carefully following a series of coordinated steps to ensure they receive the full entitled amount. This process is not just about understanding the numbers but also knowing how to navigate the insurance claim procedures and documentation requirements. Below are the general steps to reclaim recoverable depreciation; however, if you’re unsure of the requirements within your policy to reclaim recoverable depreciation, get your policy reviewed by our team of legal experts.

    1. Complete Repairs: Work with a licensed contractor to ensure quality repairs.
    2. Submit Documentation: Provide invoices and other necessary documents to your insurance company.
    3. Follow Up: Regularly check with the insurance carrier to ensure the process is on track.
    4. Consult Professionals if Needed: If issues arise, consider seeking professional help.

The Importance of Recoverable Depreciation for Policyholders and Insurance Carriers

Recoverable depreciation is more than just an insurance term; it’s a critical component that directly impacts a policyholder’s claim payout. Understanding this aspect is crucial for policyholders, ensuring a fair settlement that matches repair or replacement costs. Meanwhile, insurance carriers employ recoverable depreciation to align claim payments with real-world expenses and prevent overpayment.

Why it Matters to Policyholders

Why Insurance Carriers Use it

Common Misconceptions


Recoverable depreciation is more than just an insurance jargon; it’s an essential part of many insurance policies that can have significant financial implications. Whether you hold an RCV or ACV policy, comprehending the operation of recoverable depreciation and its payment timing can empower you to navigate the intricate insurance landscape with confidence. Gaining awareness enables you to make well-informed choices tailored to your unique circumstances and to secure the entitlements you deserve.Always consult with an insurance professional to understand your unique circumstances fully.