Working With a Public Adjuster

What Is a Public Adjuster?

A Public Adjuster is a licensed insurance professional who represents the policyholder — not the insurance company — in the claims process. While the insurance company has its own adjuster working on its behalf, a Public Adjuster works exclusively for you. They evaluate your damage, prepare and document your claim, and negotiate directly with the insurance company to reach a fair settlement.

It is important to understand the distinction between the different types of adjusters. The adjuster your insurance company sends works for them — their job is to adjust the claim on the insurer's behalf. An independent adjuster is hired by the insurance company as a contractor but still works at the insurer's direction. A Public Adjuster is the only type of adjuster who works for you and is legally obligated to represent your interests.

How Public Adjuster Fees Work

Public Adjusters typically work on a contingency fee basis, meaning they are paid a percentage of the insurance settlement they help you recover. In California, this percentage is usually between 10% and 15% of the claim proceeds, depending on the size and complexity of the claim. California law caps Public Adjuster fees in certain disaster situations.

The contingency model means there is no upfront cost to you — the Public Adjuster only gets paid when you get paid. This aligns their interests with yours: the more they recover for you, the more they earn. It also means that a Public Adjuster will generally not take a case unless they believe they can add value beyond what the insurance company has already offered.

When to Hire a Public Adjuster vs. Other Professionals

Not every claim requires a Public Adjuster, and not every situation calls for the same type of help. Here is a general guide:

Handle It Yourself

Small, straightforward claims — a broken window, a minor appliance leak with limited damage — may not justify the cost of hiring a professional. If the damage is clearly documented, the repair cost is modest, and the insurance company is handling the claim fairly, you may be able to manage the process on your own.

Hire a Public Adjuster

A Public Adjuster is recommended for large, complex, or disputed claims. This includes significant fire, water, or storm damage; claims where the insurance company's initial estimate seems far too low; claims involving multiple types of damage (structure, contents, loss of use); and any situation where you feel overwhelmed by the process. The need is widespread: the American Policyholder Association found that approximately 40% of claims were underpaid between 2018 and 2020, with households receiving $200,000–$300,000 less than entitled. After the 2025 Los Angeles wildfires, nearly 80% of victims reported serious claim issues. Public Adjusters are especially valuable when you need someone to take over the day-to-day management of the claim so you can focus on your family and recovery.

Hire an Attorney

An attorney is the right choice when the insurance company has denied your claim outright, when you suspect bad faith, or when litigation is necessary. Attorneys can pursue legal remedies that Public Adjusters cannot — including filing lawsuits and seeking damages beyond the policy benefits.

Use an Expert Contractor

If the dispute is specifically about the repair scope or methodology — for example, the insurance company says the roof can be repaired but your roofer says it needs full replacement — an expert contractor's opinion and detailed estimate can be the evidence you need to support your position.

Public Adjuster + Attorney

On large, complex claims — especially those involving bad faith, significant underpayment, or potential litigation — a Public Adjuster and an attorney can work together effectively. The Public Adjuster handles the technical claims work (documentation, estimating, negotiation), while the attorney handles the legal strategy and any litigation. This combination can be powerful for maximizing your recovery on serious claims.

How to Choose a Public Adjuster

Not all Public Adjusters are equal. Choosing the right one for your claim is important. Here is what to look for:

• Verify their license.In California, Public Adjusters must be licensed by the California Department of Insurance. You can verify any Public Adjuster's license status on the CDI website. Never hire someone who is not properly licensed.
• Ask about experience with your type of loss. A Public Adjuster who specializes in fire claims may not be the best choice for a complex water or mold loss. Ask specifically about their experience with losses similar to yours.
• Ask for references. A reputable Public Adjuster should be willing to provide references from past clients with similar claims.
• Understand the fee agreement. Read the entire contract before signing. Make sure you understand the fee percentage, when the fee is calculated (on the total settlement or only on the increase above what the insurer already offered), and any other terms.
• Confirm they carry Errors and Omissions (E&O) insurance.E&O insurance protects you if the Public Adjuster makes a professional error. A legitimate Public Adjuster should carry this coverage.

What to Expect When Working With a Public Adjuster

Once you hire a Public Adjuster, here is what the working relationship typically looks like:

• They handle communication with the insurer. Your Public Adjuster becomes the primary point of contact for the insurance company on your claim. They send and receive correspondence, respond to requests, and manage the back-and-forth.
• They document the loss. A good Public Adjuster will thoroughly document your damage — photographing, measuring, inventorying contents, and preparing a detailed scope of the loss.
• They prepare and negotiate your claim. Using their documentation and knowledge of insurance policy language, they prepare your claim and negotiate with the insurer to reach a fair settlement.
• The insurer can still contact you directly. Some policyholders are told (or believe) that once they hire a Public Adjuster, the insurance company cannot contact them directly. This is not true. The insurer may still reach out to you. However, with a Public Adjuster on board, you can direct the insurer to communicate through your representative.

Documenting the Insurer's Conduct: A Critical PA Function

A Public Adjuster's primary objective is straightforward: obtain all the money due under the policy contract. But in the course of pursuing that objective, a skilled Public Adjuster performs another function that is often just as important: documenting the insurance company's behavior.

During the claims process, the Public Adjuster is in direct, ongoing contact with the insurer — exchanging written correspondence, reviewing estimates, submitting supplements, tracking deadlines, and negotiating. Through these interactions, the PA is in a unique position to observe and create a contemporaneous record of how the insurer handles the claim. This record may capture:

• Regulatory violations — missed Fair Claims Regulations deadlines, failure to provide required disclosures, inadequate investigation
• Statutory violations — misrepresentation of policy provisions, failure to attempt a fair settlement (Insurance Code § 790.03)
• Breaches of contract — failure to pay covered losses, misapplication of deductibles or limits, refusal to honor policy terms
• Bad faith conduct — unreasonable delays, lowball offers without basis, contradictory positions, stonewalling, refusal to provide written explanations

This documentation is not manufactured for litigation — it is generated in the normal course of the PA's work. It is a real-time, professional record of the insurer's actual conduct. If a lawsuit ultimately becomes necessary, an attorney can use this file to build a case. Policyholders who handle claims on their own rarely create this kind of documentation, and when they later consult an attorney, there is often little evidence beyond their own recollection. A Public Adjuster's file changes that equation.

The Bottom Line

A Public Adjuster is your advocate in the insurance claims process. They bring expertise in policy language, damage documentation, estimating, and negotiation — skills that most homeowners do not have. For significant claims, the value a Public Adjuster provides typically outweighs their fee many times over. If you are dealing with a large or complex insurance claim, or if you feel that your insurance company is not treating you fairly, consulting with a licensed Public Adjuster is one of the smartest steps you can take.