What a Public Adjuster Does — And When You Might Want One

A Public Adjuster is a licensed professional who works for you — the policyholder — in an insurance claim. They do not work for the insurance company. They do not sell insurance. Their only job is to get you paid what you are owed under your policy.

Most people have never heard this term until they are in the middle of a claim. Here is what you need to know.

Three Types of Adjusters

The word “adjuster” confuses people because there are three kinds:

• Company adjuster (also called staff adjuster or independent adjuster) — works for the insurance company. Their job is to settle your claim. They are paid by the insurer.
• Independent adjuster — a contractor hired by the insurance company when they need extra help (catastrophes, high volume). Same role as a staff adjuster, still paid by the insurer.
• Public Adjuster — works for you. Hired by the policyholder to represent their interests. Paid by you (from the claim proceeds).

The company adjuster's job is to settle the claim. The Public Adjuster's job is to make sure the settlement is fair. These are not the same goal.

What a Public Adjuster Actually Does

• Reviews your policy to identify all coverages that apply to your loss.
• Documents the damage — photographs, measurements, scope of repair.
• Writes the estimate of repair costs (often using the same Xactimate software the insurer uses).
• Prepares and submits your claim — the entire package of documentation the insurer needs.
• Inventories your damaged personal property (contents claim).
• Calculates your Additional Living Expenses if you are displaced.
• Negotiates with the insurance company adjuster on your behalf.
• Handles supplements when additional damage is found.
• Invokes appraisal if negotiation fails.
• Documents the insurer's conduct for potential bad faith claims.

In short: they do everything you would have to do yourself, but with professional knowledge and experience.

How They Get Paid

Public Adjusters work on contingency. They charge a percentage of the claim settlement — typically 10% on standard claims, 8-10% on large losses, and 10-15% on supplemental work. After a declared emergency, contracts commonly cap the fee at 10%. Insurance Code §15027 governs the required form of the public adjuster contract; the 10% figure is industry convention, not a statutory cap. Pending legislation (AB 597) would impose a statutory 15% cap on catastrophic-disaster claims.

There is no upfront cost. If the claim pays nothing, the PA earns nothing. The fee comes out of the settlement proceeds.

When a Public Adjuster Helps Most

• The loss is large or complex (fire, total loss, extensive water damage).
• You do not have time to manage the claim yourself (you are working, dealing with displacement, recovering).
• The insurer's initial estimate seems low and you do not know how to challenge it.
• You are overwhelmed by the documentation requirements.
• The claim involves multiple coverages (dwelling + contents + ALE).
• You suspect the adjuster missed damage or underscoped the repair.
• The insurer is delaying, stalling, or being unresponsive.
• The claim is commercial and involves business interruption or complex policy forms.

When You Probably Don't Need One

• The loss is small and straightforward (a broken window, a small water stain).
• The insurer's initial estimate seems reasonable and matches your contractor's bid.
• You have the time, energy, and willingness to manage the claim yourself.
• The claim is a simple theft with a police report and clear documentation.

Public Adjuster vs. Attorney

These are different professionals with different roles:

• Public Adjuster: Handles claim documentation, estimating, and negotiation within the claims process. Cannot file lawsuits. Works on a percentage of recovery.
• Attorney: Handles legal disputes — bad faith claims, coverage denials, litigation. Can sue the insurer. Works on contingency (typically 33-40% of recovery above what was offered).

Many claims start with a PA and only go to an attorney if the insurer acts in bad faith or denies coverage entirely. The PA documents the insurer's conduct, which becomes the foundation for the attorney's bad faith case if one is needed. See When to Hire an Attorney.

How to Choose a Public Adjuster

• Verify their license with the California Department of Insurance.
• Ask about their experience with your type of loss (fire, water, commercial).
• Ask how many active claims they are handling (too many = less attention to yours).
• Understand the fee structure — percentage, when it is collected, and what expenses are included.
• Ask for references from recent clients with similar losses.
• Make sure they carry Errors & Omissions insurance.

When to Engage One

The earlier the better. A PA involved from day one can ensure the initial claim submission is complete and properly documented — preventing problems that are harder to fix later. But a PA can be engaged at any point in the process: before filing, after the adjuster's inspection, after receiving a low offer, or even after a denial. It is never too late until you have signed a final release.