What Is a Public Adjuster? What They Do and When to Hire One

A public adjuster is a licensed insurance claims professional that you hire to handle your property insurance claim. Unlike the adjuster your insurance company sends, a public adjuster works for you and is paid by you, usually as a percentage of what your insurer pays.

Many people never need one. But after a big fire or storm, or when a claim has stalled or been underpaid, a public adjuster can take over the paperwork and negotiation.

What does a public adjuster do?

According to the National Association of Insurance Commissioners (NAIC) ↗, a public adjuster "acts as an advocate for you, the policyholder, in appraising and negotiating a first party property insurance claim." In plain terms, that means they handle your claim against your own insurance policy for damage to your home, building or belongings.

Typical tasks include:

• Reading your policy to find which coverages may apply, including ones you might miss.
• Documenting the damage by inspecting the property and writing a detailed repair estimate.
• Building a contents inventory of damaged or lost personal property.
• Tracking deadlines and other policy requirements so you stay in compliance.
• Negotiating with the insurance company's adjuster and explaining the insurer's position back to you.
• Helping with the payout, including making sure your mortgage lender's interest is handled correctly.

What a public adjuster cannot do

A public adjuster cannot get you more than your policy actually covers. They also cannot act as your lawyer. In Texas, for example, the Texas Department of Insurance ↗ says public adjusters cannot practice law or give legal advice, cannot take referral fees from contractors or attorneys, and cannot stop you from talking to your insurer. Rules like these vary by state, so check your state's page for details.

How is a public adjuster different from other adjusters?

The NAIC State Licensing Handbook ↗ describes three main kinds of adjusters:

• Company (staff) adjusters are employees of your insurance company.
• Independent adjusters are contractors hired by insurance companies, often after big storms.
• Public adjusters are hired by the policyholder.

Only the public adjuster represents you. The other two are paid by the insurer and you don't pay them anything. The New York Department of Financial Services ↗ puts it simply: a public adjuster represents you, "not the insurance company."

A public adjuster is also different from an attorney. If your dispute is about what the policy language means, a denial you think is in bad faith, or a lawsuit, talk to a licensed attorney. Our guide on public adjuster vs insurance adjuster vs attorney explains when to use which.

How are public adjusters paid?

Most public adjusters charge a contingency fee, which is a percentage of the money your insurer pays on the claim. United Policyholders ↗, a nonprofit consumer group, says most charge "from 5% to 15% of the monies the insurer pays on your claim," and that fees are capped in some states and negotiable in all states.

Some states set a legal maximum. For example:

• Florida: 10% for claims tied to a declared state of emergency during the first year, and 20% otherwise (Florida DFS ↗).
• Texas: 10% of the claim settlement (Texas Department of Insurance ↗).
• New York: 12.5% of the recovery (New York DFS ↗).

For the full breakdown and fee math, read how much a public adjuster costs.

Do public adjusters get bigger settlements?

There is limited independent research. The best-known government study is Florida OPPAGA Report 10-06 ↗ from 2010, which looked at claims against Citizens Property Insurance Corporation filed in 2008 and 2009. It found:

• Claims with public adjusters took longer to settle. For non-catastrophe claims, the median time to close was 115 days with a public adjuster versus 41 days without.
• Claims with public adjusters typically received higher payments. For 2004-hurricane claims filed in 2008-2009, the median payment was $22,266 with a public adjuster versus $18,659 without.

Keep two caveats in mind. First, the report notes that the net amount to the policyholder would be lower than the gross payment because the fee comes out of it. Second, the study shows a difference, not proof that the adjuster caused it. Claims that people hire help for may simply be bigger or more complicated. No one can promise you a particular result.

When is a public adjuster worth it?

A public adjuster is more likely to be worth the fee when:

• The loss is large, such as a major fire, roof and interior water damage, or a total loss.
• The claim is complex, with many rooms, a long contents list, business income losses or more than one coverage involved.
• Your insurer has underpaid or stalled, and you believe the estimate leaves out damage.
• You don't have the time or ability to document everything, such as when you're displaced, injured or running a business.

When a public adjuster may not be worth it

Be honest with yourself about these situations:

• Small or simple claims. United Policyholders notes that the smaller the loss, the less sense it makes to pay someone a percentage.
• Your insurer is already paying fairly and quickly. In Texas, a public adjuster cannot take a percentage fee ↗ if your insurer pays or commits to pay the policy limit within 72 hours of your report. Other states have similar rules.
• Money already paid. Some states, like Florida, bar fees on payments made before you signed the contract. Others don't. Ask before you sign.
• Your problem is legal, not factual. If the insurer denies coverage based on policy wording, an attorney may be the better choice.
• You are badly underinsured. If your coverage limit won't cover the loss anyway, a fee can eat into money you need for repairs.

How to verify a public adjuster's license

Most states require public adjusters to hold a license from the state insurance department. The NAIC model law ↗ that many states draw from requires a written contract with the adjuster's license number and gives you three business days to cancel. Your state's rules may differ.

A few states do not license public adjusters at all. According to NIPR ↗, public adjusters are not licensed or regulated by the Alabama Department of Insurance.

Before you hire anyone:

1. Ask for their individual license number and a photo ID. Florida DFS ↗ tells consumers to match the two.
2. Look up the license on your state insurance department's website and confirm it is active for public adjusting.
3. Check for complaints or discipline. Texas, for example, lets you call its help line to ask about complaints.
4. Read the contract for the fee, what it applies to and how to cancel.

Our step-by-step guide on how to check a public adjuster's license walks through state lookups and red flags. You can also browse public adjuster firms by location.

Red flags to watch for

• Pressure to sign right away, especially door-to-door after a disaster. Many states limit when public adjusters can solicit.
• Someone who says they work for the government or were sent by your insurer.
• A contractor or roofer offering to "handle your claim." The NAIC notes it is illegal in many states for a contractor to act as a public adjuster without a license.
• A contract with blank fee lines, or fees on money you already received without telling you.
• Anyone who urges you to exaggerate damage. That can be insurance fraud.

Get help with your claim

If your claim is large, complicated or stuck, a licensed public adjuster can be worth a conversation. Ask questions, compare more than one, and never sign under pressure. Get matched with a licensed public adjuster in your state for free.

This guide is general information, not legal advice. Laws vary by state and change over time.

Frequently asked questions

Is a public adjuster the same as an insurance adjuster?

No. The insurance company's adjuster (staff or independent) is paid by the insurer. A public adjuster is hired and paid by you to represent your side of the claim.

How much does a public adjuster charge?

Most charge a percentage of the claim payment. United Policyholders says most fees run 5% to 15%. Some states cap fees, such as Texas at 10% and New York at 12.5%. Fees are negotiable.

Can I hire a public adjuster after my claim was denied or underpaid?

Often, yes. Many public adjusters take reopened or supplemental claims. Florida, for example, caps fees on reopened or supplemental claims at 20% of the new payment (Fla. Stat. s. 626.854(11) ↗). If the denial is about policy wording or bad faith, consider an attorney too.

Will hiring a public adjuster upset my insurance company?

Your insurer still has to handle your claim under the terms of your policy. The NAIC ↗ notes the insurer may or may not agree with your public adjuster's estimates, but the adjuster is licensed to negotiate on your behalf.

Do I still have to talk to my insurance company?

You may still need to cooperate, such as giving a recorded statement or allowing an inspection. In Texas, a public adjuster cannot keep you from talking to your insurer.

Can a public adjuster also be my contractor?

In many states, no. Texas law bars a public adjuster on your claim from also acting as your contractor, and the NAIC model law bars public adjusters from having a financial interest in your claim beyond their fee.