A Public Adjuster meticulously documents losses, prepares detailed estimates, and manages the entire claims process for their clients. These efforts can make a significant difference in the outcome of a claim, especially in complex cases. But capitalizing on this valuable experience isn’t free for property owners.
Unlike insurance company adjusters, who work for the insurer, Public Adjusters are paid by the property owner to represent your interests. Before they can get to work, you will need to reach an agreement on how they will be paid. In each case, the details will depend on the Public Adjuster, your state, and, yes, your negotiations with them.
Public adjusters typically charge a fee based on a percentage of the insurance settlement. This percentage can vary depending on several factors, including the complexity of the claim, the amount of work required, and the state regulations governing them. Public Adjusters typically charge a standard percentage or hourly rate for their services. Review our 50 State database.
A Public Adjuster can often work with you to develop a payment plan or installment schedule that meets your financial situation. They may also offer different rates depending on the size and complexity of the claim. Larger claims typically result in a lower percentage fee, making it more cost-effective for substantial settlements. When discussing your options with a Public Adjuster, always ask for a detailed fee structure and understand what’s included in their services.
Keep in mind that regulations governing Public Adjusters vary by state. Some states have caps on the fees that Public Adjusters can charge, along with specific licensing requirements and ethical guidelines. It’s essential to familiarize yourself with the regulations in your state to ensure you’re working with a licensed and reputable adjuster.
In Texas, for example, the total fee may not exceed 10 percent of the settlement you receive from the insurance company (Texas Association of Public Insurance Adjusters, n.d.).
In places with no state-mandated cap, it’s not uncommon for Public Adjusters to charge as much as 40 percent of the final settlement.
It’s also important to note that in some states, your Public Adjuster could be named a co-payee on a settlement check, guaranteeing they are paid for their services. (Maryland Insurance Administration, n.d.). Having knowledge of local laws helps you identify potential red flags when hiring a Public Adjuster.
Review Tiger Adjusters 50 State database for more information on fee caps and state law.
If you have a large claim, Public Adjusters may be willing to lower their percentage fee for substantial claims, as a smaller percentage of a larger settlement amount will still provide them with a significant fee. You can also propose a sliding scale fee that decreases as the claim amount increases. This arrangement can be mutually beneficial and more palatable than a flat percentage for both parties.
Before signing on with a Public Adjuster, be sure to clarify whether there are additional costs beyond the percentage fee. Some adjusters may charge extra for specific services, such as outside testing or experts, so it's best to discuss any other potential expenses upfront.
Most importantly, a Public Adjuster's fee is not the only factor that will impact your total recovery. Your insurance policy deductible, exclusions, sub-limits, and more can reduce it. A reputable Public Adjuster will review your policy and make you aware of these issues before they ask you to sign their contract (Department of Emergency Management, n.d.).
Connect with the team at Tiger Adjusters to find out if the services of a Public Adjuster are suitable for your claim and how our experience helps us fight to get you the settlement your policy entitles you to.
Texas Association of Public Insurance Adjusters (n.d.). About Public Adjusters. Retrieved September 23, 2024, from https://www.mytapia.org/about-public-adjusters-faq/#:~:text=Fees%20are%20negotiable.,receive%20from%20the%20insurance%20company
Maryland Insurance Administration (n.d.). Should I Hire a Public Adjuster to Help Me Settle My Claim? Retrieved September 23, 2024, from https://insurance.maryland.gov/Consumer/Documents/publicnew/publicadjuster.pdf
Department of Emergency Management (n.d.). Public Insurance Adjusters. County of San Mateo. Retrieved September 23, 2024, from https://www.smcgov.org/dem/public-insurance-adjusters
