Key Takeaway
DCS public adjusting works on contingency: no recovery, no fee. You pay nothing upfront for public adjusting, and the fee comes out of the money recovered. In Texas, if the insurer paid nothing before you signed with DCS, our fee is 10% of the recovery. If the insurer paid before you signed, our fee is 25% of the new money recovered and never exceeds 10% of the total settlement. This Texas fee structure does not apply to Florida. For Florida homeowner and condo unit-owner policies, fee limits are generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims. Lower limits and other restrictions can apply. For Florida commercial claims, check the fee terms in the written agreement and under Florida law. Read the written agreement for the fee and terms that apply to your claim.
How Do Public Adjuster Fees Work?
Public adjuster fees are contingent percentages of the amount the public adjuster recovers on the claim. Contingent means the fee is owed only on money the insurer actually pays - if nothing is recovered, no fee is owed. In Texas, the DCS fee is 10% of the claim recovery. If the insurer paid on the claim before the contract date, the fee is 25% of the new money recovered, and never exceeds 10% of the total settlement. For this Texas fee structure, the trigger is money the insurer actually paid before the contract date, not an offer that was never paid. This Texas fee structure does not apply to Florida. In Florida, your written agreement sets the fee within the limits that apply to your claim.
The practical structure works like this:
- A homeowner contacts a public adjuster for a free claim review
- If the public adjuster takes the claim, both parties sign a written contract describing the scope of representation and the fee percentage
- The public adjuster works the claim - documenting damage, preparing estimates, negotiating with the carrier
- When a settlement is issued, the public adjuster's fee is a percentage of that settlement (or, on a supplement, a percentage of the additional amount recovered)
- The fee is typically deducted from the settlement check at closing, not paid out of pocket
Every major state insurance regulator publishes a model form or form guidance for public adjuster contracts. The Texas Department of Insurance (TDI) and the Florida Department of Financial Services (DFS) both require written contracts before representation begins.
What Is the Public Adjuster Fee Cap in Texas?
Texas Insurance Code Chapter 4102 caps public adjuster fees at 10% of the insurance settlement. This cap applies to any insurance settlement paid under a Texas policy, whether residential or commercial, whether initial settlement or supplement.
Key features of the Texas public adjuster fee framework:
- 10% maximum fee on the total amount of the insurance settlement recovered by the public adjuster
- Contingent - DCS charges no upfront fee and no retainer: no recovery, no fee
- Written contract required - on a contract form filed with and approved by TDI, clearly stating the fee percentage, scope of representation, and termination rights
- Licensed PAs only - only a public adjuster licensed by TDI may charge a fee for representing a policyholder on a Texas claim. Practicing without a license is prohibited under Chapter 4102
- Cancellation right - you may cancel the contract by written notice within 72 hours after signing it (Tex. Ins. Code 4102.103)
The 10% Texas cap is among the most policyholder-friendly fee structures in the United States. Dependable Claims Specialists holds an active TDI public adjusting firm license (TX Firm #3134924) and operates in full compliance with Chapter 4102.
Pro Tip
Texas policyholders should only sign a public adjuster contract that expressly states a percentage at or below 10%. Texas Insurance Code §4102.104 caps a public adjuster's commission at 10% of the insurance settlement. If a contract adds separate expenses or fees on top of the percentage, ask the adjuster to explain them, and consult a licensed attorney if you are unsure.
What Is the Public Adjuster Fee Cap in Florida?
For Florida homeowner and condo unit-owner policies, fee limits are generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims. Lower limits and other restrictions can apply. For Florida commercial claims, check the fee terms in the written agreement and under Florida law. Florida's cancellation and disclosure requirements also depend on the policy and engagement. Review the written contract before signing.
For covered residential and condo unit-owner engagements, Florida's general percentage limits are subject to additional restrictions, including lower permitted fees on certain prompt policy-limit payments and amounts paid or agreed to before the contract. DCS charges no upfront fee for public adjusting: no recovery, no fee.
Because the 10% emergency cap is tied to the date the event becomes the subject of a declared emergency, every Florida hurricane, tropical storm, tornado outbreak, or large-scale event will typically trigger the lower cap. DCS holds an active Florida DFS public adjusting firm license (FL Firm #W820363) and operates in full compliance with §626.854.
Pro Tip
For Florida homeowner and condo unit-owner policies, confirm whether the claim is based on the Governor-declared emergency and was made during the year after the declaration. The general 10% limit is a maximum, not a required rate; lower limits can apply. Read the fee in the written agreement and ask the public adjuster to explain it.
What Do Public Adjuster Fees Pay For?
A public adjuster's fee should cover the full scope of claim representation with no additional charges on top of the percentage - that is how the DCS contract works. A licensed public adjuster fee typically includes:
- Free initial claim review - policy and claim evaluation before a contract is signed
- Policy analysis - reading declarations, endorsements, conditions, exclusions, and coverage limits to identify all applicable coverages
- Damage inspection - on-site inspection using professional equipment (moisture meters, thermal imaging, aerial imagery where appropriate)
- Xactimate estimate preparation - professional line-item estimate using the same estimating software most insurance companies use
- Claim filing and documentation - submitting the claim and all supporting documents to the carrier
- Carrier negotiation - all communications, evidence submissions, and negotiations with the carrier adjuster, desk adjuster, and claim manager
- Supplements - filing supplements when additional damage is discovered during repairs
- Depreciation recovery - on replacement-cost policies, tracking release of recoverable depreciation after repairs
- Closing - reviewing the final settlement and following up until every agreed payment is issued
Additional services often included depending on the firm and the claim: attendance at the carrier's inspection, coordination with contractors and mitigation companies, and, where appropriate, participation in the insurance appraisal clause process.
When Is a Public Adjuster NOT the Right Fit?
A public adjuster is the right fit for most first-party property insurance claims - but not for every situation. Understanding when not to hire a public adjuster is part of responsible representation.
A public adjuster is generally not the right professional for:
- Small claims well within the deductible - if the total loss is below or close to the deductible, there is no recovery to justify a fee
- Third-party liability claims - public adjusters handle first-party claims (the policyholder's own insurance claim). Liability claims (someone suing the homeowner, or the homeowner suing another party) are attorney territory
- Auto insurance claims - auto claims have their own framework and are generally not handled by property public adjusters
- Coverage disputes requiring litigation - if the core dispute is whether the loss is covered at all (rather than the amount of loss), a licensed attorney may be the right professional, often working alongside a public adjuster on the valuation component
- Criminal restitution or fraud allegations - attorney territory
A responsible public adjuster will decline claims that are not a good fit and refer the homeowner to a licensed attorney or appropriate professional where warranted. The Texas Department of Insurance and the Florida Department of Financial Services both prohibit public adjusters from practicing law - any legal advice must come from a licensed attorney.
How Do Public Adjuster Fees Compare to Attorney Fees?
Public adjuster fees and attorney fees serve different roles and follow different fee structures. Understanding the difference helps homeowners choose the right professional.
| Aspect | Public Adjuster | Insurance Attorney |
|---|---|---|
| Scope | Valuation of first-party property claims - documenting damage, preparing estimates, negotiating with carriers | Legal disputes, coverage disputes, statutory claims, litigation |
| Texas fee cap | 10% of the insurance settlement (Ins. Code Ch. 4102) | Set by the attorney's written agreement and applicable legal-profession rules; ask the attorney to explain fees and costs |
| Florida fee cap | For homeowner and condo unit-owner policies, generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims; lower limits can apply. Commercial agreements require separate review | Set by the attorney's written agreement and applicable legal-profession rules; ask the attorney to explain fees and costs |
| Licensing | TDI (Texas) / DFS (Florida) | State bar |
| Best for | Amount-of-loss disputes, underpayment, missed scope | Coverage disputes, statutory claims, litigation |
Many claims are handled by a public adjuster alone. Some are handled by an attorney alone. Some are handled by both, working together - a common pattern is the PA handling the damage valuation while an attorney handles parallel legal issues. The right choice depends on the specific facts of the loss and the nature of the dispute with the carrier.
What Should You Look For in a Public Adjuster Contract?
Before signing any public adjuster contract, Texas and Florida homeowners should confirm six things:
- The public adjuster is actively licensed - verify the license through TDI's agent lookup (Texas) or the Florida DFS license lookup (Florida). Ask for the license number and confirm it matches
- The fee follows applicable limits - Texas law caps a public adjuster's fee at 10% of the insurance settlement. For Florida homeowner and condo unit-owner policies, fee limits are generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims. Lower limits and other restrictions can apply. For Florida commercial claims, check the fee terms in the written agreement and under Florida law.
- The contract is on the required form - Texas contracts must be on the TDI-approved form; Florida law prescribes the contract's required contents (§626.8796) and DFS adopts the separate disclosure form. Ask the adjuster to confirm which form the contract uses, and consult a licensed attorney about the effect of a non-approved form
- The scope of representation is clearly described - which claim, which date of loss, which claim number
- The cancellation right is disclosed - in Texas, you may cancel the contract by written notice within 72 hours after signing it (Tex. Ins. Code 4102.103)
- There are no hidden fees or expenses - the percentage should be comprehensive
Homeowners should never sign a contract they have not read, and should never feel pressured to sign on the spot. A licensed public adjuster will walk through every section of the contract before signing and will leave the homeowner with a copy for their records.
Pro Tip
Look up the PA license before signing. Texas: tdi.texas.gov/agent. Florida: licenseesearch.fldfs.com. A one-minute lookup before signing protects against unlicensed operators.
How DCS Structures Its Fee Agreement
A public adjuster's fee should be transparent on its face, capped by statute, and contingent on recovery - and the contract should say so in language the policyholder can verify in a single read. Anything less is a contract worth not signing.
What to confirm in any PA fee agreement (DCS or otherwise):
- Applicable fee limits. Texas law caps a public adjuster's fee at 10% of the insurance settlement. For Florida homeowner and condo unit-owner policies, fee limits are generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims. Lower limits and other restrictions can apply. For Florida commercial claims, check the fee terms in the written agreement and under Florida law.
- Payment-based baseline. In Texas, the DCS fee is 10% of the claim recovery. If the insurer paid on the claim before the contract date, the fee is 25% of the new money recovered, and never exceeds 10% of the total settlement. For this Texas fee structure, the trigger is money the insurer actually paid before the contract date; an offer that was never paid does not change the fee.
- No recovery, no fee. If nothing is recovered from the insurer, no fee is owed.
- Scope-of-engagement clarity. The contract should identify the specific claim (loss date, loss type, address) rather than a perpetual representation that survives the claim.
- Cancellation rights. Both Texas and Florida provide statutory cancellation windows after signing; the contract should restate them rather than obscure them.
DCS provides written fee agreements that meet each of these standards and walks every prospective client through the entire contract before signing. A signed copy stays with the policyholder.
Call 833-4UR-LOSS for a fee-and-process explanation before any claim review, or request one in writing at dcspia.com/hire-dcs. TX Firm #3134924 | FL Firm #W820363. Educational only, not legal advice.
Frequently Asked Questions
How much does a public adjuster cost in Texas?
Public adjuster fees in Texas are capped at 10% of the insurance settlement under Texas Insurance Code Chapter 4102. Fees are contingent - if nothing is recovered, no fee is owed. No upfront cost and no retainer: no recovery, no fee.
How much does a public adjuster cost in Florida?
DCS public adjusting works on contingency: no recovery, no fee. You pay nothing upfront for our public-adjusting service; the fee comes out of the money recovered. Texas law caps a public adjuster's fee at 10% of the insurance settlement. For Florida homeowner and condo unit-owner policies, fee limits are generally 10% for claims about a Governor-declared emergency made during the year after the declaration, and 20% for other claims. Lower limits and other restrictions can apply. For Florida commercial claims, check the fee terms in the written agreement and under Florida law. Review the written fee agreement before signing.
Do I have to pay anything upfront to a public adjuster?
No. Licensed public adjusters in Texas and Florida work on a contingency fee basis. Fees are only owed from the recovery and are typically deducted from the settlement check at closing. If nothing is recovered, no fee is owed.
Is the public adjuster fee in addition to the insurance payment?
No. The fee is a percentage of the insurance payment recovered, not an additional cost paid by the policyholder out of pocket. The fee comes out of the settlement.
Can a contractor charge me a "public adjuster fee"?
Generally, no. In Texas and Florida, aside from a licensed attorney, only a licensed public adjuster may charge a fee to represent a policyholder on an insurance claim. A contractor who holds themselves out as a public adjuster without a license, or who charges a fee for claim representation, may be operating outside the law. Always verify the license of anyone who proposes to negotiate with your insurance company.
Can I cancel my public adjuster contract after signing?
Yes. In Texas, you may cancel the contract by written notice within 72 hours after signing it (Tex. Ins. Code 4102.103). In Florida, you may cancel within 10 days after the contract is signed, or, for a claim from a Governor declared emergency, within 30 days after the date of loss or 10 days after signing, whichever is longer (Fla. Stat. 626.854(7)).
