What is a public adjuster and should you hire one?

Key points

• When you file a home insurance property damage claim, your insurer will send an insurance adjuster to survey the damage and estimate a claim reimbursement.
• You can also hire your own public adjuster who will look out for your interests, but you’ll have to foot the bill, which can be up to 15% of your claim payout.
• A public adjuster can help you with the claim paperwork, try to negotiate a higher payout and dispute a claim denial. 
• If you hire a public adjuster, your insurance company may no longer be able to talk to you about your claim. 

Public adjusters work on your behalf to settle a home insurance claim and assist in interacting with your insurance company. Public adjusters differ from adjusters employed by insurance companies in that they are independent professionals who advocate for policyholders.

Not all policyholders need to hire a public adjuster when filing a claim, but understanding the role this type of professional plays can help you make an informed decision.

What does a public adjuster do?

Public adjusters assist you with the claims process, providing expertise and helping to get a fair payout amount based on damages and your home insurance coverage. 

Some tasks these professionals commonly perform include:

• Review your home insurance policy to determine which types of coverage apply and whether you can file a claim based on those coverages.
• Evaluate and detail all damages to your property, including estimates for repairs or replacements and the timeline for necessary work.
• Research claim deadlines and file all required paperwork and documentation on time.
• Liaise between you, your insurance company and any others involved, such as lawyers.
• Update you on the process and track your claim as it moves through the insurance company’s system.
• Negotiate the claim settlement with the insurance company on your behalf.

Tip: Keep in mind that a public adjuster cannot get you more money than is outlined in your insurance policy. For example, if your dwelling coverage limit is $250,000 and the damage to the structure of your house is more than $400,000, your public adjuster cannot negotiate past the limit.

When you might need a public adjuster

Typically when you file a property damage claim with your home insurance, your insurance company will provide an insurance adjuster to review the damages to your property, determine if your home insurance covers it and assign a valuation to repairs. You do not need to pay for the insurance company’s adjuster.

While these individuals are qualified to perform their roles and you may have no issues, if your claim is denied or your payout is lower than you expected, you may want to hire a public adjuster to get a second opinion. A public adjuster is paid by you and works for your interests.

Some reasons to consider hiring a public adjuster may include:

• You want professional guidance to make sure you receive a large enough claim payout.
• You don’t understand the claims process and want an experienced insurance expert to handle the process.
• Your insurer sent out an adjuster, but you’re not sure they captured the full scope of damage in their report.
• You worry the payout offered by your insurer is too low and will not adequately cover all the expenses related to repair or replacement.

Where to get a public adjuster

If you find yourself in need of a public adjuster, you can reach out to the National Association of Public Insurance Adjusters or the American Association of Public Insurance Adjusters and ask for a list of professionals in your area. Regional associations may also exist depending on where you live, so look for those as well.

You can also ask friends and family if they have any recommendations. Before deciding to work with any public adjuster, it’s important to ask for references from former clients and to review their qualifications. You can contact your state’s insurance department to ensure a public adjuster is licensed and to get a sample contract.

Make sure you understand an adjuster’s fees and qualifications before signing a contract with one.

How much a public adjuster costs

Costs vary among public adjusters, with most charging a percentage of your claim payout. According to the Insurance Information Institute, public adjusters charge a fee of up to 15%. 

For example, if you hire a public adjuster who charges 10% and you receive a claim payout of $150,000, you will pay the adjuster $15,000. 

Other public adjusters may charge an hourly rate or use a flat fee structure. Be sure to factor in the cut of your payout to see if it makes sense with your budget.

“When considering whether to engage a public adjuster, the insured should weigh the proposed fee or proposed percentage the insured will have to pay to the public adjuster from any potential claim settlement,” said Ricki Gardenhire, information officer for the Kentucky Public Protection Cabinet.

Tip: If you hire a public adjuster and your insurance company does not increase its offer, you still have to pay the adjuster.

How to choose a public adjuster

Take your time when choosing a public adjuster as scams do exist. Consider interviewing at least two public adjusters before making a decision and don’t feel pressured to sign a contract before reviewing all your options.

Finding a public adjuster who maintains membership in a regional or national association for professional public adjusters is a good place to start, but you should also check with your state’s insurance board to verify their licensure status.

When natural disasters occur, some public adjusters will come from out of state to find clients. When interviewing candidates, ask if their permanent address is in your state of residence. Training and licensure requirements for public adjusters vary across states.

Other questions to ask include:

• How long they have worked as a public adjuster?
• Have any complaints been filed against them? 
• Can they provide a list of local referrals you can contact?

Carefully review the contract before signing with a public adjuster. Consider:

• Does the public adjuster charge a deposit?
• How much do they charge for their services?
• Are there any additional fees?
• Do they charge a penalty for canceling the contract? 

If you can’t find these details in the contract, ask for more information before signing. 

Public adjuster vs. independent adjuster

As you research the process of hiring someone to help you manage the insurance claims process, you may come across independent adjusters as well as public adjusters. Understanding the different types of insurance claims adjusters is important when navigating the claims process.

Independent adjusters work on behalf of insurance companies in a contractor position. They perform the same tasks as in-house adjusters and may work for several insurance companies simultaneously.

Public adjusters work for you as the policyholder to ensure you receive a fair and reasonable claim settlement.

Public adjuster FAQs