Property Insurance Claim & Public Adjuster FAQs

A public adjuster is a licensed insurance professional retained by the policyholder to help document, prepare, present, and negotiate a first-party property insurance claim. Unlike the insurance company’s adjuster, a public adjuster represents the policyholder’s interests.

The insurance company’s adjuster works for the insurer and evaluates the claim on the insurer’s behalf. A public adjuster is hired by and represents the policyholder. The two roles are different even though both may inspect damage, review documentation, and discuss the amount of loss.

An agent or broker helps place and service insurance coverage, while a public adjuster focuses on preparing and negotiating the property claim itself. Some policyholders handle claims without a public adjuster; others hire one when the loss is large, complex, delayed, disputed, or difficult to document.

Common reasons include a large or complex loss, disagreement over the scope or value of damage, business interruption issues, extensive contents claims, multiple buildings, delays, repeated requests for information, or an offer that appears incomplete. Licensing rules and permitted services vary by state.

Public adjusters commonly charge a percentage of the insurance settlement or another fee allowed by state law and the written contract. Fee limits vary by state. For example, Texas generally limits a public adjuster’s commission to 10% of the claim settlement, subject to specific rules and exceptions.

Rules vary by state, but conflicts of interest are heavily regulated. In Texas, a public adjuster working on a claim may not also participate in the repair or reconstruction of the damaged property. Always verify the rules in your state.

Protect people first, contact emergency services when needed, take reasonable steps to prevent additional damage, notify the insurer promptly, photograph and video conditions before cleanup when safe, preserve damaged materials when practical, and keep receipts for emergency expenses.

Mitigation means taking reasonable steps to prevent avoidable additional damage after a loss, such as stopping an active leak, extracting standing water, boarding openings, or arranging temporary protection. Mitigation does not mean making permanent repairs before the damage is properly documented.

Yes, when it is safe to do so. Wide-angle photos, close-ups, video walkthroughs, equipment labels, serial numbers, moisture readings, and dated records can help establish the condition of the property and the extent of damage.

Keep the policy and endorsements, claim correspondence, estimates, invoices, receipts, photographs, videos, inventories, expert reports, permits, leases, maintenance records, prior inspection records, business income records, and a log of important calls and meetings.

A proof of loss is a formal statement of the amount and details of a claimed loss. Some policies or insurers require it within a specific time after a request. The exact form, deadline, and supporting documentation depend on the policy and applicable law.

Actual cash value generally reflects repair or replacement cost less depreciation. Replacement cost coverage generally pays the cost to repair or replace damaged property with like kind and quality, subject to policy terms, limits, deductibles, and conditions. Many policies initially pay ACV and release recoverable depreciation after qualifying repairs or replacement.

Recoverable depreciation is the portion of depreciation that may be paid later under a replacement-cost policy after the policyholder satisfies the policy’s requirements for repair or replacement. Deadlines and documentation requirements vary by policy.

The deductible is the portion of a covered loss the policyholder is responsible for before insurance benefits apply. Some policies use flat-dollar deductibles, while others use percentage deductibles for wind, hail, hurricane, or other perils.

Differences can come from scope, quantities, measurements, labor assumptions, material quality, pricing databases, code requirements, overhead and profit, taxes, access conditions, hidden damage, or whether certain work is considered covered. The important step is to compare the estimates line by line and document the basis for each difference.

In many claims, policyholders can obtain their own contractor estimates and retain appropriate experts, subject to the policy and state law. For complex losses, engineers, industrial hygienists, architects, forensic accountants, equipment specialists, or other professionals may be needed to document the full scope.

Avoid discarding damaged property before it is adequately documented and, when appropriate, inspected by the insurer. Health or safety conditions may require immediate disposal, but photograph, video, inventory, and retain samples when reasonably possible.