Not All Adjusters Work for You
When you file an insurance claim, the word "adjuster" gets used frequently, but most policyholders do not realize that there are fundamentally different types of adjusters with very different loyalties and incentives. Understanding these differences is one of the most important things you can do to protect your claim and ensure you receive a fair settlement.
There are three main types of insurance adjusters: staff adjusters, independent adjusters, and public adjusters. While they all assess property damage and estimate repair costs, they serve very different masters, and that distinction makes all the difference in the outcome of your claim.
Staff Adjusters and Independent Adjusters: Working for the Insurance Company
A staff adjuster is a full-time employee of the insurance company. They receive a salary and benefits from the insurer, and their job is to investigate claims and determine what the company should pay. Their performance is often evaluated based on metrics that include claim closure rates and average payout amounts. While many staff adjusters are honest professionals, the reality is that they work within a system designed to control costs.
An independent adjuster, sometimes called an IA, is a contractor hired by the insurance company, usually during high-volume periods like hurricane season or after a major hailstorm. Independent adjusters are typically paid per claim, which creates an incentive to close claims quickly rather than thoroughly. They are deployed by firms that contract with insurance carriers, and their continued employment depends on satisfying the carriers who hire them.
Neither staff adjusters nor independent adjusters have any obligation to you, the policyholder. They are not required to point out damage they were not specifically asked to evaluate. They are not required to tell you that your claim is worth more than their estimate. They are not required to inform you of your rights under your policy or under state law.
Public Adjusters: Your Advocate in the Claims Process
A public adjuster is a licensed insurance professional who works exclusively for the policyholder, never for the insurance company. Public adjusters are licensed by the state and must meet continuing education requirements. We are bound by a fiduciary duty to act in your best interest.
When you hire a public adjuster, you are hiring someone whose sole job is to maximize your insurance recovery within the legitimate scope of your policy. We inspect your property independently, identify all damage, prepare a comprehensive Xactimate estimate, review your policy to ensure all coverages are applied, negotiate with the insurance company on your behalf, and manage the entire claims process from start to finish.
Public adjusters typically work on a contingency basis, meaning we only get paid when you get paid. Our fee is a percentage of your settlement, which aligns our interests directly with yours. If we do not recover money for you, you owe us nothing.
**Pro Tip for Industry Professionals:** Ensure your representation agreement clearly defines the scope of your authority and fees, as mandated by the state department of insurance. Adhering strictly to state-promulgated contract clauses prevents the carrier from attempting to invalidate your Letter of Representation (LOR) on technicalities.
The Numbers Speak for Themselves
Multiple independent studies have demonstrated that policyholders who hire public adjusters receive significantly higher settlements than those who handle claims on their own. The Office of Program Policy Analysis and Government Accountability (OPPAGA) in Florida found that claims handled by public adjusters resulted in settlements that were, on average, over 700 percent higher than claims handled without representation.
While the exact difference varies by claim type and severity, in our experience at Dependable Claims Specialists (DCS PIA), we consistently recover two to five times the initial offer from the insurance company. This is not because we are inflating claims. It is because insurance company adjusters routinely miss damage, use incomplete pricing, and apply policy provisions in ways that legally but unfairly reduce the payout.
When Should You Hire a Public Adjuster?
The best time to hire a public adjuster is as soon as you have a claim, ideally before the insurance company sends their adjuster. This allows us to document the damage independently and be present during the carrier's inspection. However, it is never too late. We regularly help policyholders who have already received an estimate they believe is too low, have had their claim denied, or are in a dispute with their insurance company.
You should seriously consider hiring a public adjuster if your claim involves significant damage, typically over $10,000, if you have a commercial property claim, if your claim has been denied or underpaid, if you do not have the time or expertise to manage the claim yourself, or if you simply want peace of mind knowing that a licensed professional is fighting for your best interests.
Choosing the Right Public Adjuster
Not all public adjusters are created equal. When choosing a public adjuster, verify their state license, ask about their experience with your specific type of claim, request references from recent clients, understand their fee structure, and ensure they will personally handle your claim rather than passing it to a less experienced associate.
At DCS PIA, we are licensed in both Texas and Florida, and we specialize in residential and commercial property damage claims. Every claim is personally managed by a licensed adjuster, and we use the same Xactimate software that insurance companies use to ensure our estimates are accurate, defensible, and comprehensive.
