Public Adjusters: A Complete Guide

Insurance companies need proof of damage before paying a homeowner claim. If the loss is significant, your insurer may send a contracted adjuster to verify your loss and determine an appropriate payout. You could hire someone to do the same thing, but public insurance adjusters work for you and not the insurance company.

Government officials say it’s never a bad idea to hire a public insurance adjuster when your claim is large and complicated.[1] But before you get started, you should know what these professionals do and how to hire someone who is both ethical and qualified.

What Is a Public Insurance Adjuster?

A public insurance adjuster is a licensed professional hired by a homeowner to assess damage and negotiate a settlement. These experts don’t work for insurance companies. They work for homeowners. But they understand how claims work, what awards are reasonable for damage, and how policies work. 

Your insurance company hires an adjuster too. This person will also assess your damage and work on a settlement. 

In some cases, this person offers a reasonable offer for your covered loss. But sometimes, company adjusters face pressure to keep costs down.[2] If that happens, you could get less than your policy dictates unless a public adjuster intervenes. 

Key Facts About Public Insurance Adjusters 

What Does a Public Insurance Adjuster Do?

Public insurance adjusters work for you after a major event impacts your home or property. These professionals can maximize the benefits you’re entitled to via your insurance policy. 

Homeowners sometimes hire public insurance adjusters when a claim is denied or seems too small.[4] But you could also use a public insurance adjuster to help you navigate a complex claim. 

A typical public insurance adjuster will handle the following tasks:

• Policy inspection: Your homeowners insurance includes language about what is and isn’t covered and how much you’re entitled to. A public adjuster can explain any murky parts of your contract in terms you can understand. 
• Physical inspection: A public insurance adjuster will examine damage to your home and property. They’ll assess the extent of it and make judgments on what is needed to repair it.
• Gathering evidence: Receipts, photographs, and videos can compel an insurance company to increase their payout. A public adjuster could find these items for you. 
• Determining an appropriate settlement: A public insurance adjuster can’t get you more money than your policy allows. But this professional could give you a higher number than the insurance company offered. 
• Negotiating: In some states, your insurance company can’t speak with you after you hire a public adjuster.[4] Instead, this professional will work directly with the insurance company and present you with a negotiated offer. 

Pros & Cons of Hiring a Public Adjuster

You’re not required to work with a public insurance adjuster. In fact, some people find that their services aren’t needed, as the insurance company’s adjuster does a fine job.[5] However, examining the pros and cons can help you determine if this step is right for you and your situation. 

Benefits of Hiring a Public Adjuster 

Several known benefits are associated with hiring a public adjuster, including the following:

• Advocacy: A public insurance adjuster is contractually required to work for you, not the insurance company. 
• Hassle: Complex claims involving several different types of damage require a lot of negotiation and communication. A public insurance adjuster tackles this for you. 
• Expertise: Public insurance adjusters are experts who can read your policy and help ensure you get the benefits you’re entitled to. 
• Potential payout: A public insurance adjuster could negotiate a higher settlement than you could get alone. 

Drawbacks of Hiring a Public Adjuster

A public adjuster relationship can also come with drawbacks, including the following:

• Cost: You must pay a public adjuster, which could reduce your ability to pay for repairs or replace your belongings. 
• Fraud: If you don’t check your adjuster’s credentials carefully, you could get swindled by someone posing as an expert. These types of fraud are common after major catastrophes, such as superstorms.[1] 
• Loss of control: Your public adjuster works directly with your insurance company, cutting you out of the conversation. Sometimes, that isn’t ideal. 
• No guarantee: A public adjuster can’t get you more money than is specified in your policy. And even though the person you hire may work hard, there’s no promise of success. 

Pros & Cons of Hiring an Insurance Adjuster 

Benefits	Drawbacks
Works for you	You must pay this professional
Handles the details of your claim	Fraudulent adjusters could cheat you
Can explain your policy and terms	You won’t work directly with your insurance company
Could get you a larger payout	No guarantee the work will pay off

When to Hire an Insurance Adjuster 

No hard-and-fast rule about hiring an adjuster exists. But some situations are so complex and potentially damaging that it makes sense to have a professional working just for you. 

Consider hiring a public insurance adjuster if one of these issues applies:

• The claim is large. After a major event, such as a fire or a burst pipe, your insurance company may be asked to cover the entire cost of replacing your home. A public insurance adjuster can help you get the amount you deserve. 
• The claim involves many moving parts. Some homeowners insurance claims aren’t straightforward. For example, a severe storm could rip the roof off your home and break a pipe in the bathroom. Your insurance company may want to pay for one type of damage and not the other. A public insurance adjuster may help. 
• You’re unhappy with the insurance company. If you feel the insurance company’s adjuster is asking too many questions (such as demanding paperwork you don’t have) or is undervaluing your claim, a public insurance adjuster may help. 
• You’re simply overwhelmed. Dealing with a complicated and high-stakes claim can be incredibly difficult and time-consuming. Hiring a professional to help can be worthwhile. 

How Much Does a Public Adjuster Cost?

Several fee methods for public insurance adjusters exist. In some states, rules dictate how adjusters can set fees. In others, rules cap how much they can charge for their services. 

The following fee types exist:

• Flat: The public insurance adjuster charges one fee, no matter how much your final settlement is. 
• Hourly: The adjuster sets a charge for each hour of work completed. 
• Contingent: The public adjuster’s fees are based on the amount of your final claim. 

Public insurance adjusters sometimes face fee caps. A charge of up to 15% of the insurance settlement is common.[6] But that price can vary dramatically from state to state. 

Choosing the Right Public Adjuster for Your Needs

Finding a public insurance adjuster is relatively easy, and it can be done in several different ways. 

One of the following methods could work for you:

• Ask for a referral. Your friends, neighbors, or coworkers could have ideas about public insurance adjusters at work in your area. 
• Try a database. Organizations like the National Association of Public Insurance Adjusters have a database of licensed professionals.[7] 
• Contact your state. Your state’s insurance licensing organization could have a database to search. 

Before you settle on someone, ask the following questions:

• Are you licensed in my state? Can I see proof?
• Are you a member of a national association? Can I see proof?
• How long have you worked in this field? Can I see references?
• How much will you charge?

Ask for a contract, and take your time to review it before you sign. You shouldn’t feel pressured to sign quickly. All of your pertinent details should be included and clear to you. If you have any questions, speak up.

Frequently Asked Questions About Public Insurance Adjusters

We’ve compiled some of the most frequently asked questions about public insurance adjusters.