When to Hire Help

Not every claim needs a professional. But knowing when DIY stops working — and which type of help fits your situation — can save you months and thousands of dollars.

The Decision Framework

Public Adjusters

What they do

A public adjuster (PA) works for you, not the insurer. They:

• -Document and scope the damage
• -Write a detailed Xactimate estimate
• -Negotiate with the insurer's adjuster
• -Handle the supplement and re-inspection process
• -Push for full policy benefits

What they cost

• -Typically 10-15% of the settlement (higher for smaller claims)
• -In Colorado, capped at 10% during a declared catastrophe
• -No upfront cost — they're paid from the settlement

When they're worth it

• -Your claim is $50K+ and the insurer is lowballing
• -You don't have time or energy to fight a complex scope dispute
• -The insurer's adjuster is unresponsive or adversarial
• -You need someone who speaks Xactimate fluently

When they may NOT be worth it

• -Your claim is under $25K — the PA's fee eats too much of the recovery
• -The insurer has accepted coverage and the gap is small
• -You're comfortable negotiating and have a good contractor estimate
• -Your policy's appraisal clause could resolve it faster

How to find one

• -Must be licensed in Colorado (verify at DORA)
• -Ask for references from recent Colorado water damage claims
• -Avoid anyone who shows up at your door uninvited after a disaster (storm chasers)
• -Check their complaint history with DORA

Attorneys

What they do

An insurance attorney can:

• -Review your policy and advise on coverage
• -Send demand letters that carry legal weight
• -Pursue bad faith claims (CRS 10-3-1115/1116)
• -File suit if necessary
• -Negotiate settlements with the insurer's legal team

What they cost

• -Contingency: 33-40% of recovery (no upfront cost, attorney gets paid from settlement)
• -Hourly: $250-$500/hour (for consultation or smaller matters)
• -Hybrid: hourly for advice, contingency if litigation is needed

When you need one

• -Claim denied entirely — especially if you believe the denial is wrong
• -Bad faith — delay, deception, threats, refusal to pay undisputed amounts
• -Large disputed amount — the 2x damages provision in Colorado makes attorney involvement viable for larger claims
• -Insurer demands examination under oath — have an attorney present
• -You received a reservation of rights letter — the insurer is investigating whether to deny, and you need someone watching your interests

When you probably don't need one

• -Scope/amount dispute that can be resolved through supplementing or appraisal
• -Small claims where attorney fees would exceed the recovery
• -Early-stage negotiations where you haven't exhausted DIY options

How to find one

• -Look for attorneys who specialize in first-party insurance claims (policyholder side)
• -Colorado Trial Lawyers Association has a referral directory
• -Many offer free initial consultations for insurance disputes
• -Ask specifically about their experience with water damage claims in Colorado

Contractors

Their role in your claim

Your contractor is your expert witness on what the repairs actually cost. A strong contractor relationship gives you:

• -An independent estimate to counter the insurer's scope
• -Professional documentation of damage and required repairs
• -Someone who can meet the insurer's adjuster on-site and discuss scope
• -Actual repair work when you're ready to rebuild

What to look for

• -Licensed and insured in Colorado
• -Experience with insurance restoration work (not just general remodeling)
• -Willing to write a detailed estimate (ideally in Xactimate)
• -Good references from insurance claim work specifically
• -Not affiliated with the insurer (some "preferred contractor" programs align the contractor with the carrier, not you)

The DIY Path

For claims under $25K or straightforward situations, doing it yourself is viable if you:

• -Document thoroughly (see Document Everything)
• -Get your own contractor estimate
• -Read your policy (see Know Your Policy)
• -Know the timelines and your rights (see Colorado Rights)
• -Communicate in writing and keep records
• -Stay patient and persistent

When to escalate from DIY: If you've submitted a supplement, waited 30+ days with no response, and the gap between your estimate and the insurer's offer is more than $15K — it's time to consider professional help.

General information, not legal advice. For advice specific to your situation, consult a licensed professional.