What does a public insurance adjuster do, and how do they work?

A public adjuster is a state-licensed adjuster who works only for the policyholder, not the insurance company. They prepare, present, and negotiate property insurance claims after damage from events such as fire, windstorms, hail, or floods, and they must meet the licensing requirements of each state where they practice. Public adjusters typically charge a percentage of the final settlement and are paid only after the insurer pays the claim; in Texas, the fee is capped at 10% of the settlement.

In Delaware, a public adjuster is licensed under Title 18, Chapter 17A, and must operate under a contract, filing a copy with the state insurance department. A resident applicant applies through the National Insurance Producer Registry (NIPR), passes the Pearson VUE exam, provides state and FBI criminal history reports, and posts a $20,000 bond. Public adjusters then complete 12 hours of continuing education each biennium, including 3 hours of ethics.

A public insurance adjuster handles claims on behalf of policyholders rather than insurers. Rhode Island requires public adjuster contracts to be written, gives the insured 3 business days to rescind, and requires funds held for insureds to go into a non-interest-bearing escrow or trust account. In a catastrophe, the fee may not exceed 10% of the settlement, and no fee, retainer, or deposit may be demanded before settlement. The biennial license fee is $250, and a person may not hold a public adjuster license and a company or independent adjuster license at the same time.