Letter of Representation

The Letter of Representation (LOR)—is basically, your golden ticket to having a claim expert handle your insurance drama. It’s a document that says, “Hey, I’m officially letting this Public Adjuster be my insurance ninja.”

All Letter of Representations have to be approved by a state's Department of Insurance. This means that there are different legal requirements between various Letter of Representations. A Letter of Representation for Texas is different from one from Florida.    

"The average homeowner claim happens once every 28.1 years. Does the average homeowner want to stop and learn everything about the insurance industry to try and win their claim? Or would they rather hire an expert -- a Public Adjuster? To reiterate, we are here to advocate on behalf of the policyholder and win a maximum claim that covers all damages."

Public Adjuster, Stewart Severino

parts of the agreement

Part 1: Date of Contract

The day the deal goes down. This date is when your partnership with the Public Adjuster becomes official.

Part 2: Date of Loss

That dreadful day something bad happened to your property.

Part 3: Claim Number

It’s like the ID badge for your insurance claim. Without it, your claim is just a nameless face in the insurance crowd. Don’t lose it, unless you enjoy long hold times with customer service robots.

Part 4: Insurance Company & Policy Details

Here’s where you name the evil empire—or your friendly neighborhood insurer, depending on your luck. Add your policy number too.

Part 5: The Retainer

This part says: “We, the insured, hereby knight thee, Public Adjuster, to fight the insurance claim dragons on our behalf.”

Part 6: Fee Percentage

How much your Public Adjuster fee is. Usually a percentage of the total settlement funds (example: 10%-15%), but they don’t take a cut of your deductible or any gold coins you found in your backyard. 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.

Remember: In every state that allows public adjusting, except for one state, Public Adjusters do not get paid until you do.

Want to know if there is a fee cap for Public Adjuster's in your state? Or, do you want to know if there are any fee cap exceptions? Check out Tiger Adjusters® 50 State Public Adjuster fee cap database.

"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."

Public Adjuster, Ted Patestos

Part 7: Expert Claim Review

Need an expert team of engineers or witnesses? The contract explains who pays for that Avengers team-up. Spoiler: It’s usually you, but your Public Adjusters asks for approval before incurring expenses.

Part 8: Authorization

Here’s where you authorize your Public Adjuster to endorse insurance checks on your behalf.

Part 9: Cancellation Clause

Not feeling the adjuster love anymore? You can bail within a certain time frame (usually 10 days, but it varies per state). Just write them a certified breakup letter, and voilà, you’re free!

Part 10: Fraud Statement

A reminder from the law: Lying on your claim is a big no-no. Unless you like the sound of "felony" and free meals in a state-funded facility, play it straight, folks.

Part 11: Signature of Insured and Public Adjuster

Signatures seal the deal. You, the policyholder, and the Public Adjuster sign to make it official.

"Going back to fee flexibility, the elderly and military veterans are two groups our franchise makes an effort to support with reduced fees or no fees on services."

Public Adjuster, Sheldon Sutphen

There you go! You’ve got someone in your corner ready to get you the cash you need to fix your property. A Letter of Representation is like your buddy in a bar fight with the insurance company. Keep it honest, read the fine print, and trust your Public Adjuster to be the advocate you need.