Hiring a Public Adjuster: What You Need to Know

What Is a Public Adjuster?

A public adjuster is a licensed insurance professional who represents policyholders (not insurance companies) in preparing, presenting, and negotiating insurance claims. They work exclusively for you, the policyholder.

Understanding the Different Types of Adjusters

The key distinction is that public adjusters have a fiduciary duty to you. Their job is to maximize your claim payment, not minimize it like the insurance company's adjusters.

What Do Public Adjusters Do?

A good public adjuster handles most aspects of your insurance claim, freeing you from the time-consuming and often frustrating claims process.

Services Public Adjusters Typically Provide

• Policy Review: Analyze your policy to identify all available coverage, limits, and deadlines
• Damage Assessment: Thoroughly document and photograph all damage, often finding damage the insurer's adjuster missed
• Loss Inventory: Help create detailed inventories of damaged or destroyed personal property
• Repair Estimates: Prepare detailed repair estimates using industry-standard software (like Xactimate)
• Claim Preparation: Compile and submit all required documentation, proof of loss forms, and supporting evidence
• Negotiation: Negotiate directly with the insurance company on your behalf
• Additional Living Expenses: Help document and claim ALE if you cannot live in your home
• Supplement Claims: File for additional payments when hidden damage is discovered during repairs

When Should You Hire a Public Adjuster?

Not every claim needs a public adjuster. Here are situations where hiring one typically makes sense.

Good Candidates for Public Adjusters

• Large or complex claims: Generally $10,000+ where the fee is justified by the potential increase
• Major property damage: Fire, flood, hurricane, tornado, or other significant losses
• Denied or underpaid claims: When the insurer has offered significantly less than you believe is fair
• Lack of time or expertise: When you cannot dedicate hours to documenting and negotiating
• Business claims: Commercial property and business interruption claims are complex
• Difficult insurers: When your insurance company is being unresponsive or difficult

When You Probably Do Not Need One

• Small claims under $5,000-10,000 (fees may eat too much of the recovery)
• Simple, straightforward claims the insurer is handling fairly
• Claims where liability or coverage is clearly denied (you may need an attorney instead)

The Pros and Cons of Public Adjusters

Do Public Adjusters Actually Help?

A 2020 study by the Office of Program Policy Analysis and Government Accountability (OPPAGA) in Florida found that claims handled by public adjusters received settlements averaging 747% higher than claims without public adjusters. However, this does not account for claim complexity or the fact that difficult claims may be more likely to engage public adjusters in the first place.

The bottom line: for large, complex, or disputed claims, a skilled public adjuster often increases your net recovery even after their fee. For simple claims handled fairly by the insurer, you may not need one.

How Much Do Public Adjusters Charge?

Public adjusters are paid a percentage of your insurance settlement. Fees vary by state and complexity but typically fall into these ranges:

Some states cap public adjuster fees, especially after declared disasters. The fee is typically calculated on the total settlement, including amounts you might have received without the adjuster.

Fee Negotiation Tips

• Fees are often negotiable, especially for larger claims
• Ask if the fee applies only to the increase over the insurer's initial offer
• Understand exactly what services are included
• Get the fee agreement in writing before signing

How to Choose a Good Public Adjuster

The quality of public adjusters varies widely. Here is how to find a reputable one.

Verification Checklist

• Verify their license with your state's insurance department
• Check for complaints or disciplinary actions
• Ask for references from recent clients
• Look for membership in professional associations (NAPIA, state associations)
• Confirm they carry errors and omissions insurance
• Ask about their experience with your type of claim

Questions to Ask Before Hiring

1. How long have you been a licensed public adjuster?
2. Have you handled claims similar to mine?
3. What is your fee, and how is it calculated?
4. What specific services will you provide?
5. Who will actually work on my claim?
6. How will you communicate with me throughout the process?
7. What happens if we cannot reach a satisfactory settlement?
8. Do you have references I can contact?

Red Flags to Avoid

• Door-to-door solicitation after disasters: Reputable adjusters do not chase storm victims
• Pressure to sign immediately: You should have time to consider and compare
• Guaranteed results: No one can guarantee a specific settlement amount
• Upfront fees: Public adjusters are typically paid only from settlements
• No written contract: Always get everything in writing
• Cannot verify license: If they cannot provide a valid license number, walk away

The Contract: What to Look For

Before signing with a public adjuster, carefully review the contract. It should clearly address:

Essential Contract Terms

• Fee percentage: Exactly what percentage and how it is calculated
• What the fee applies to: Total settlement? Only amounts above insurer's initial offer?
• Services included: What exactly will they do for you?
• Exclusions: What is NOT included (lawsuits, etc.)?
• Cancellation rights: How and when can you cancel?
• Duration: How long does the agreement last?
• Communication: How will they keep you informed?

Public Adjuster vs. Attorney: Which Do You Need?

Public adjusters and attorneys serve different roles. Understanding the difference helps you get the right help.

In some cases, you may benefit from both. A public adjuster can handle the documentation and valuation while an attorney addresses coverage disputes or bad faith issues. Some attorneys work with public adjusters on large claims.