Public Adjusters (PAs) are licensed and regulated according to state insurance codes.
A public adjuster (PA) represents the insured property owner (aka the policyholder) to prepare, present and settle a property insurance claim. A qualified PA has specialized expertise that can simplify and speed up the complicated, time-consuming insurance claim process. A PA works only for you, the property owners, not an insurance company, not a roofing company, not a repair company, or general contractor. A PA is an important protection for your rights as a policyholder.
Frequently Asked Questions (FAQs) about Public Insurance Adusters
What is a public insurance adjuster?
A public adjuster (PA) represents you—the policyholder—prepare, present and settle a home or business property insurance claim. A qualified PA has specialized expertise that can simplify and speed up the complicated, time-consuming process for settling a claim for property damage from fire, windstorm, hail, floods, hurricanes, and other disasters.
A PA works only for you—not an insurance company, not a roofing company, not a repair company, or general contractor. Hiring a PA is an important protection for your rights as a policyholder.
Public adjusters are licensed by the State to represent policyholders as their claim advocate. When handling your claim for property loss, insurance companies use their own licensed claims adjusters or sometimes contract with licensed independent adjusters. Their job is to represent the insurance company’s interests. The public adjuster focuses only on your interests.
Why hire a public adjuster?
A public adjuster understands insurance policies. A PA knows about things like current replacement costs, property repair, business income loss, and other elements of property loss that are critical to getting a fair and proper settlement.
What should I expect my PA to do?
- Carefully review your insurance policy. Insurance policies can be long, detailed and difficult to understand. Policies can change from year to year and often require that insurance claims meet specific conditions. Not meeting the conditions can result in your claim being denied or reduced payments for the property loss. A public adjuster makes sure that a claim meets all the requirements of your policy.
- Thoroughly document your loss. The public adjuster should prepare your claim, including all estimates, inventories, photographs, and other factual information that is required to prove the extent of your loss. They can inspect your property loss and submit proof of loss to your insurance company.
- Work with the insurance company adjuster to agree on the proper amount owed to you. Usually, the public adjuster and company adjuster settle the claim without controversy.
How much do public adjusters charge?
A responsible public adjuster usually bases his or her fee on a percentage of the final settlement—based on the time, energy, and expertise required to effectively represent you. This fee is typically 10-20% of the insurance settlement, depending on the state jurisdiction and circumstances surrounding the claim.
Public adjusters offset their fees in the time they save their clients and by increasing the amount of the claim recovery. The public adjuster does not receive a fee until the insurance company pays your claim, and public adjuster involvement typically results in a 50-800% increase in the settlement amount.
How do I choose a public insurance adjuster?
There are several important things to consider in choosing a public adjuster:
License: Make sure they have a current license to practice in your state. Ask for his or her license number. If you have any concerns that it’s not a real license, before you enter into a contract, reach out to the state’s department of insurance or financial services to confirm.
No conflict of interest: Beware of contractors who offer to handle your claim “for free” if you let them do the work (sometimes called “contingent agreements”). This is a conflict of interest and is illegal. A professional public adjuster will prepare your claim without committing to a contractor. That leaves you free to collect your money and then decide with whom and how to spend it.
Also, beware of contractors and public adjusters who try to push you toward an attorney when there is no sign of a legal problem. Most property insurance claims can be settled if both parties act professionally.
Experience: Public adjusters come from a wide range of backgrounds with different areas of expertise. Ask questions to make sure you select a public adjuster with experience that matches your specific loss. Feel free to ask for and talk to references.
Professionalism: Do not sign a contract unless you’ve been given a thorough explanation of how the public adjuster will handle the claim, how they will communicate with you throughout the process, and how they will determine the fee you will pay. Never sign a blank contract.
Comfort level: Be sure you are comfortable talking to and working with the public adjuster. It’s important for you to feel like he or she understands your needs and can communicate in a manner you’re comfortable with.
Honesty: It’s important to find a public adjuster who demonstrates honesty and integrity when dealing with your claim.
When should I hire a public insurance adjuster?
Insurance adjusters are responsible for evaluating the extent of damage to a home after an incident like a fire, tornado, flood, hail or hurricane. And public insurance adjusters evaluate property loss on behalf of a policyholder and help them file insurance claims in exchange for a fee. They are licensed professionals who work for individuals and businesses – not insurance companies – and can save you a lot of money by ensuring your insurance company is paying the full amount it is responsible for under your policy.
What’s the difference between a private and public insurance adjuster?
Independent or Private adjusters are paid by insurance companies to adjust the claim on their behalf, whereas ‘public adjusters’ work exclusively for the insurance policyholder, you, the homeowner or commercial owner. ‘Public Adjusters’ help policyholders with many of the complex provisions and processes involved with a typical insurance property claim.
What if my contractor offers to handle my insurance claim?
It is against the law for contractors – including roofing and restoration contractors – to negotiate your claim with your insurance company. Contractors may not hire adjusters to handle your claim.
Insurance adjusting, especially public adjusting, requires special training and a license issued by the state.
Be sure to hire an Honest PA to navigate the insurance claims process.