Public Adjuster vs. Insurance Attorney: Which Do You Need?

A public adjuster handles the amount of your property claim: documenting damage, writing estimates and negotiating with your insurer. An insurance attorney handles legal problems: coverage denials based on policy wording, bad faith, and lawsuits.

Many claims need neither. Some need one, and a few need both. This guide compares what each does, how they're paid, and the signs that it's time to call a lawyer. It is general information, not legal advice.

Quick comparison

Sources for fees: United Policyholders on public adjusters ↗ and on attorneys ↗.

What a public adjuster does

The NAIC ↗ describes a public adjuster as someone who "acts as an advocate for you, the policyholder, in appraising and negotiating a first party property insurance claim." That typically means:

• Reviewing your policy for coverages that apply
• Inspecting the damage and writing a detailed estimate
• Preparing a contents inventory and other claim documents
• Negotiating with the insurer's adjuster
• Helping you meet policy deadlines

What a public adjuster can't do

Public adjusters aren't lawyers. The Texas Department of Insurance ↗ says they cannot "practice law or give legal advice." In some places the line is drawn even tighter. NIPR ↗ reports that Alabama doesn't license public adjusters, and the Alabama State Bar views negotiating claims for an insured with the insurer as the practice of law.

For more, see what a public adjuster is.

What an insurance attorney does

A property insurance attorney, licensed by your state bar, can:

• Advise you on your legal rights under the policy and state law
• Interpret disputed policy language and exclusions
• Evaluate whether the insurer acted in bad faith
• Send legally required pre-suit notices
• File a lawsuit and represent you in court
• Review releases and settlement agreements before you sign

United Policyholders ↗ recommends choosing a lawyer who is experienced in representing policyholders, not a general practitioner.

How each one is paid

Public adjuster fees

Most public adjusters charge a percentage of what the insurer pays. United Policyholders says most charge "from 5% to 15% of the monies the insurer pays on your claim," and some states cap fees, such as Texas at 10% (TDI ↗) and New York at 12.5% (NY DFS ↗). Details are in our public adjuster fees guide.

Attorney fees

Attorneys may charge hourly or on contingency. According to United Policyholders ↗:

• "If a case settles before a case goes to trial, most attorneys set their contingency fee at 33% of the recovery."
• "If a case goes to trial, the range increases to 33-40%."
• "Some attorneys will advance litigation costs, but the client is generally ultimately responsible for them."

Under the American Bar Association's Model Rule 1.5(c), which many state ethics rules follow, a contingency fee agreement must be in writing, signed by the client, and explain how the fee is figured and what expenses you may owe (Cornell LII ↗). Whether the insurer can be made to pay some of your attorney fees depends on state law, which varies and has changed in some states. Ask the attorney how it works where you live.

Comparing cost

A higher percentage isn't automatically worse. What matters is what each percentage applies to, what expenses you'll owe, and what problem you need solved. A public adjuster can't fix a legal problem at any price.

When you may only need a public adjuster

• The insurer agrees the damage is covered, but you disagree on how much.
• The claim is large or complex, with many rooms, contents or business losses.
• You need someone to document and negotiate but there's no legal dispute.

United Policyholders ↗ says that if the dispute is only about the extent or value of property damage and your insurer is cooperating, hiring an attorney "may not be necessary." Its public adjuster checklist ↗ adds that while a lawyer can represent you in claim negotiations, it generally "doesn't make economic sense to hire one to adjust your loss."

When you need a lawyer

Consider talking to a licensed insurance attorney if:

• The insurer denied coverage based on an exclusion or policy wording you think is wrong.
• You suspect bad faith, such as unreasonable delays or refusing to explain a decision.
• A lawsuit deadline is close. For example, California's standard fire policy form requires suit within 12 months after the loss, or 24 months if related to a state of emergency (Cal. Ins. Code s. 2071 ↗).
• Your state requires formal notice before suing. In Texas, notice must generally be given at least 61 days before filing certain property claim suits (Tex. Ins. Code s. 542A.003 ↗). In Florida, a civil remedy (bad faith) action requires 60 days' written notice to the state and the insurer first (Fla. Stat. s. 624.155 ↗).
• The insurer requests an examination under oath or accuses you of fraud.
• You've been asked to sign a release or "full and final" settlement and aren't sure what you're giving up.
• You've been sued or have a dispute with your public adjuster.

These are legal questions. A public adjuster can't answer them, and neither can this guide.

Can you use both?

Yes, some claims involve both. A public adjuster may document the size of the loss while an attorney handles a coverage dispute or lawsuit. New York DFS ↗ suggests that after a major loss, if you reach an impasse with your insurer, you may consider consulting an attorney or hiring a licensed public adjuster.

If you use both:

• Ask how the fees interact, in writing, so you're not paying two percentages on the same dollars.
• Know the referral rules. In Texas, a public adjuster may recommend an attorney but may not sign you up mainly to refer you to one or have you sign an attorney agreement on a lawyer's behalf (Tex. Ins. Code s. 4102.158 ↗). TDI also says public adjusters can't accept referral fees from attorneys.
• Ask if they work with a particular firm. United Policyholders lists this as a question to ask before hiring a public adjuster.

How to decide

1. Read the insurer's letter. Is the dispute about money or about coverage?
2. Check your deadlines, especially for filing suit.
3. Interview both if the answer isn't clear. United Policyholders suggests that where public adjusters are licensed, you "interview both lawyers and public adjusters before deciding which one would be best suited" to your situation.
4. Compare written fee agreements side by side.

Get help with the amount of your claim

If your dispute is about how much your insurer owes, a licensed public adjuster may be the right fit. If it's a legal issue, start with an attorney. Get matched with a licensed public adjuster.

This guide is general information, not legal advice. For advice on your situation, consult a licensed attorney in your state.

Frequently asked questions

Is a public adjuster cheaper than a lawyer?

Often the percentage is lower. United Policyholders says public adjusters commonly charge 5% to 15%, while attorneys often charge about 33% before trial. But they solve different problems, and expenses and fee bases matter too.

Can a public adjuster sue my insurance company?

No. Public adjusters can't file lawsuits for you or give legal advice. If your claim may go to court, talk to a licensed attorney.

Do I need a lawyer if my claim was denied?

It depends on why. If the denial is based on policy wording or an exclusion, or you suspect bad faith, talking to an attorney makes sense. If the dispute is about the amount or extent of damage, a public adjuster may help.

Can I hire a lawyer after hiring a public adjuster?

Yes, you can talk to a lawyer at any time. Review your public adjuster contract for what you'd owe if you end it, and ask both how fees would work together.

How is a public adjuster different from my insurer's adjuster?

Your insurer's adjuster works for the insurance company. A public adjuster works for you. See our guide on public adjuster vs. insurance adjuster.