Public Adjusters: What They Do, What They Cost, and When They're Worth It
A public adjuster is a licensed professional who represents the policyholder, not the insurer, in a property claim, usually for a percentage of the settlement. Here is how they work and how to evaluate one.
When you file a property claim, the insurer's adjuster works for the insurance company. A public adjuster is a licensed professional you hire to represent you. They document the loss, prepare the claim, and negotiate with the insurer, usually for a fee based on a percentage of the settlement.
What public adjusters do
- Review your policy to identify coverages that apply.
- Document and estimate damage, including items that are easy to miss.
- Prepare inventories and proof of loss.
- Negotiate with the insurer's adjuster.
- Handle communication and paperwork.
What they cost
Fees are commonly a percentage of the settlement, and some states cap fees, sometimes with lower caps after declared disasters. A hypothetical example:
| Without a public adjuster | With a public adjuster (10% fee) | |
|---|---|---|
| Settlement | $60,000 | $80,000 |
| Fee | $0 | $8,000 |
| Net to you | $60,000 | $72,000 |
Show the numbers behind this chart
| Net to policyholder | |
|---|---|
| Without public adjuster | $60,000 |
| With public adjuster, after 10% fee | $72,000 |
If the adjuster doesn't increase the settlement by more than their fee, you'd have been better off without one.
When they may be worth it
- Large or complex losses, such as major fires or widespread damage.
- Business claims involving business interruption.
- When you don't have the time or expertise to document a large claim.
- When the insurer's estimate seems far below contractor estimates.
When they may not be
- Small, straightforward claims.
- When the insurer has already offered a fair settlement; some states limit fees on amounts already offered.
- Disputes that are about coverage, which may need an attorney.
How to choose one
- Verify the license with your state insurance department; most states license public adjusters.
- Read the contract carefully, including the fee, what it's based on, and cancellation rights.
- Ask for references and experience with similar losses.
- Be cautious of pressure tactics, especially door-to-door solicitation right after a disaster.
See also the appraisal clause and how to file a home insurance claim.
The takeaway
Public adjusters represent policyholders for a percentage of the settlement. They can add value on large, complex claims, but their fee needs to be outweighed by a better outcome. Check licensing, read the contract, and compare against handling the claim yourself.
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