Public Adjuster vs Insurance Adjuster vs Attorney (Who to Call)

The insurance adjuster works for your insurance company, while a public adjuster works for you. An attorney is a lawyer who can give legal advice and take your insurer to court, which neither type of adjuster can do.

All three can be part of a property claim. The key questions are who each one represents, who pays them, and what kind of problem you have. This guide breaks it down so you can decide who to call.

Quick comparison

| | Insurance company adjuster | Public adjuster | Attorney | |---|---|---|---| | Works for | Your insurer | You | You | | Who pays | The insurer | You, usually a % of the claim | You, often a contingency fee or hourly | | Licensed by | State insurance department (in many states) | State insurance department (in most states) | State bar | | Main job | Investigate and value the claim for the insurer | Document, value and negotiate your claim | Legal advice, coverage disputes, lawsuits | | Can give legal advice? | No | No | Yes |

The insurance company's adjuster

When you file a claim, your insurer assigns an adjuster. According to the NAIC State Licensing Handbook ↗, there are two kinds that work on the insurer's side:

• Company (staff) adjusters, who are employees of the insurance company.
• Independent adjusters, who are contractors hired by insurers, often brought in after big storms.

Either way, they represent the insurer. The New York Department of Financial Services ↗ explains that your insurer sends an adjuster to assess the damage and estimate repair or replacement costs, and that adjuster works for the insurance company.

Who pays the insurance adjuster?

The insurer does. You pay nothing extra. For example, on flood claims under the National Flood Insurance Program, FEMA sets a fee schedule ↗ for the adjusters assigned to handle claims.

When the insurer's adjuster is enough

Many claims are settled fairly without outside help. The NAIC ↗ notes that many consumers are able to resolve their property claims by dealing with their insurance company and its adjuster on their own. If your claim is small, clear and the offer matches your repair estimates, you may not need anyone else.

The public adjuster

A public adjuster is a licensed professional you hire to handle your side of a first-party property claim. The NAIC ↗ says a public adjuster "works for you, the policyholder, and is paid by you, not the insurance company."

They typically:

• Review your policy for coverages that apply
• Inspect and document the damage, and write a repair estimate
• Prepare a contents inventory
• Track policy deadlines and paperwork
• Negotiate with the insurer's adjuster

For a deeper look, see what is a public adjuster.

Who pays the public adjuster?

You do. Most work on contingency. United Policyholders ↗ says fees usually range from 5% to 15% of what the insurer pays. Some states cap fees. Texas caps them at 10% (TDI ↗) and New York at 12.5% (NY DFS ↗). Our public adjuster fees guide covers caps and fee math.

What a public adjuster can't do

Public adjusters are not lawyers. The Texas Department of Insurance ↗ says they cannot practice law or give legal advice, and cannot take referral fees from attorneys or contractors. Rules differ by state.

Also, not every state licenses public adjusters. NIPR ↗ notes that public adjusters are not licensed or regulated by the Alabama Department of Insurance, and that the Alabama State Bar views negotiating claims for an insured as the practice of law. Check your state's page before hiring anyone.

The attorney

An insurance or property claim attorney is licensed by your state bar. Unlike an adjuster, an attorney can:

• Give you legal advice about your rights
• Interpret disputed policy language
• Advise you on bad-faith claims, which are legal claims that an insurer acted unfairly
• File a lawsuit and represent you in court

Who pays the attorney?

You do. Many property claim attorneys work on a contingency fee, meaning they are paid a share of what is recovered. Others bill hourly. Under the American Bar Association's Model Rule 1.5(c), a model for state ethics rules, a contingency fee agreement must be "in writing signed by the client" and explain how the fee is calculated and what expenses you may owe (Cornell LII ↗). In some states, a court may order the insurer to pay some attorney fees, but those rules vary and have changed in recent years. Ask the attorney how it works where you live.

Which one do you need?

This depends on what the disagreement is about.

Consider handling it yourself when:

• The damage is minor or the claim is simple.
• The insurer's offer lines up with your contractor's estimate.
• You have the time to document and follow up.

Consider a public adjuster when:

• The dispute is about how much. The insurer agrees the damage is covered but you think it underestimated the scope or cost.
• The loss is large or complex. Fires, major water or wind damage, big contents claims and business income losses take a lot of documentation.
• You can't manage the claim. You are displaced, working, injured or running a business.

You can browse public adjuster firms in your area.

Consider an attorney when:

• The insurer denied coverage based on policy wording or an exclusion you think is wrong.
• You suspect bad faith, such as unreasonable delays or refusal to explain a decision.
• You've been sued, or want to sue, or a deadline to file suit is close.
• The insurer wants an examination under oath or accuses you of fraud.

These are legal questions. A public adjuster can't advise you on them, and this guide can't either.

When both may be involved

Some claims use both. A public adjuster may document the amount of loss while an attorney handles a coverage dispute. If you hire both, make sure you understand each fee agreement and that you are not paying two percentages on the same money. Ask each one, in writing, how their fees interact.

Other ways to resolve a dispute

Before or alongside hiring help, you may have other options. A 2010 Florida OPPAGA report ↗ describes three common paths: mediation, where a neutral person helps both sides reach a non-binding agreement; appraisal, a binding process used to set the amount of the loss if your policy includes it; and litigation through the courts. Availability depends on your policy and state.

You can also file a complaint with your state insurance department, which is free. For example, the Texas Department of Insurance ↗ takes complaints at 800-252-3439.

Get the right help

If your claim is about the amount of damage and it's large or stuck, a public adjuster may help. If it's about legal rights, start with an attorney. Get matched with a licensed public adjuster in your state.

This guide is general information, not legal advice.

Frequently asked questions

Is an independent adjuster the same as a public adjuster?

No. Independent adjusters are hired by insurance companies, usually as contractors. Public adjusters are hired by policyholders. Only a public adjuster represents you.

Does the insurance adjuster work for me?

No. Your insurer's adjuster, whether a staff employee or an independent contractor, works for the insurance company. New York DFS states this directly in its consumer guidance.

Is a public adjuster cheaper than a lawyer?

It depends on the fee agreement and the claim. Both often work on contingency. Compare the percentage, what it applies to, and any expenses before you decide.

Can a public adjuster sue my insurance company?

No. Public adjusters cannot file lawsuits on your behalf or give legal advice. If your claim may end up in court, talk to a licensed attorney.

Can I fire my public adjuster and hire a lawyer?

Usually you can end the contract, but you may owe the adjuster for work done under the contract terms. United Policyholders recommends understanding how you can end the contract, and what you'd owe, before you sign.

Do I have to let my insurer's adjuster inspect my property?

Most policies require you to cooperate with the insurer's investigation, which often includes an inspection. Check your policy's "duties after loss" section, and ask an attorney if you're unsure.