When disaster strikes and your property is damaged, navigating an insurance claim can be overwhelming. One of the few allies that property owners can turn to during this time is a Public Adjuster.
Unlike insurance adjusters who work for the insurer, Public Adjusters represent the interests of the policyholder (homeowners and commercial property owners). They assess property damage, estimate repair costs and negotiate with insurance companies to ensure fair settlements. But before you enlist their services, it's important to understand the licensing requirements that govern this profession.
The licensing of Public Adjusters ensures that individuals working in this field have a minimum level of knowledge and competence. It protects consumers from potentially unscrupulous or inexperienced practitioners who might take advantage of vulnerable policyholders in the aftermath of a disaster. Public Adjusters must be licensed in order to legally adjust claims.
In most states, it is illegal for contractors to try to negotiate claims or represent themselves as Public Adjusters. This stance was recently confirmed in a case before the Texas Supreme Court (Araullo, 2024).
Proper licensing also establishes ethical standards and professional conduct guidelines that Public Adjusters must adhere to. This can also include rules about advertising, handling client funds and maintaining confidentiality. States can hold Public Adjusters accountable for their actions and revoke licenses when necessary.
In addition, licensing creates a formal process for addressing complaints and resolving disputes. When a policyholder has issues with a licensed Public Adjuster, they can file a complaint with the state licensing board, which has the authority to investigate and take disciplinary action if warranted.
The licensing requirements for Public Adjusters can vary significantly from state to state. Currently, most U.S. states require Public Adjusters to be licensed, but the specific requirements and processes can differ widely.
For example, some states, like California, Florida, and Texas, have some of the most robust licensing programs with strict education and examination requirements. These states often require applicants to complete pre-licensing courses, pass a state-specific exam and fulfill continuing education requirements to maintain their license.
Other states may have less stringent requirements, but regulations can change. It's always best to check with your state's insurance department for the most up-to-date information. Use the Tiger Adjusters 50 state Public Adjuster database which includes links to government entities, licensing requirements, fees, and fee caps.
Many states also participate in reciprocity agreements, which allow licensed Public Adjusters from one state to obtain a license in another state more easily. This can be particularly useful for Public Adjusters who work in multiple states or in areas prone to natural disasters where out-of-state adjusters may be needed.
Public Adjusters can also opt to obtain other professional certifications. Organizations like the National Association of Public Insurance Adjusters (NAPIA) offer certification programs that demonstrate a commitment to professionalism and ongoing education. Consider looking for an adjuster who holds certifications such as the Certified Professional Public Adjuster (CPPA) or Senior Professional Public Adjuster (SPPA).
Despite state licensing, it’s also critical to thoroughly check an adjuster's references and experience. Ask for client testimonials, inquire about their experience with claims similar to yours, and don't hesitate to ask for references you can contact directly. A reputable Public Adjuster should be happy to provide this information.
As the insurance industry continues to evolve, so do the regulations governing Public Adjusters. States, including Georgia, Indiana and Florida, recently strengthened standards to better protect consumers and ensure high standards of professionalism in the field (Sams, 2023).
While each state currently sets its own licensing requirements, efforts are being made to create more uniform standards nationwide (Hilton, 2023). This could potentially make it easier for Public Adjusters to work across state lines and for consumers to understand what qualifications to look for.
Regardless, if you encounter issues with a Public Adjuster, don't hesitate to reach out to your state's insurance department or a professional organization like NAPIA for guidance. The Tiger Adjusters 50 state Public Adjuster database includes a link to each state’s insurance oversight agency. The resources found there can provide valuable information and assistance if you need to look up a license, file a complaint or seek a resolution to a dispute.
With the right knowledge, approach and an ally from Tiger Adjusters guiding the way, you can navigate the claims process with confidence. Let our team discuss your claim and options with you today.
Araullo, K. (2024, June 12). TDI secures legal victory against roofing contractor. Insurance Business. Retrieved from: https://www.insurancebusinessmag.com/us/news/legal-insights/tdi-secures-legal-victory-against-roofing-contractor-493010.aspx
Sams, J. (2023, May 13). More States Adopted Professional Standards for Public Adjusters This Year. Insurance Journal. Retrieved from: https://www.insurancejournal.com/news/southeast/2023/05/16/720905.htm
Hilton, J. (2023, September 26). NCOIL debates fee caps for public adjusters in proposed model law. Insurance Newsnet. Retrieved from: https://insurancenewsnet.com/innarticle/ncoil-debates-fee-caps-for-public-adjusters-in-proposed-model-law
