How is a public adjuster different from an insurance company adjuster?

Insurance companies employ their own adjusters — either staff (employee) adjusters or independent (contracted) adjusters — who work for the carrier. The carrier pays them, and their job is to investigate and resolve claims under the carrier’s guidelines and policies. A public adjuster is the opposite: a public adjuster is hired by the policyholder, paid by the policyholder (typically on contingency), and works only for the policyholder. Public adjusters do not work both sides; in most states, including Texas and Florida, the same person cannot represent both the insurer and the policyholder on the same claim.

How is a public adjuster different from an insurance attorney?

A public adjuster handles the documentation, valuation, and negotiation side of a property insurance claim. A public adjuster is NOT an attorney and does not practice law. An insurance attorney provides legal advice, files lawsuits, and represents policyholders in court. Public adjusters and attorneys often work together — the PA documents and values the loss, and the attorney handles legal questions about coverage, statute interpretation, and the policyholder’s legal rights. If your claim involves legal questions about your rights, you should talk to a licensed attorney.

What does a public adjuster actually do during a claim?

A public adjuster typically: (1) reviews the insurance policy to identify all applicable coverages, limits, exclusions, and endorsements; (2) inspects the damaged property thoroughly, often using moisture meters, thermal imaging, and drone photography; (3) documents every item of damage with photographs, measurements, and written notes; (4) prepares a detailed line-item estimate using Xactimate or similar industry-standard estimating software; (5) presents the claim to the insurance carrier with supporting documentation; (6) negotiates with the carrier’s adjuster to resolve disputes over scope and value; (7) coordinates supplemental claims if additional damage is discovered during repairs.

When should a homeowner hire a public adjuster?

The best time to hire a public adjuster is BEFORE filing a claim, so the PA can ensure the claim is documented properly from the start. However, a public adjuster can be hired at any stage: before the carrier’s adjuster inspects, after receiving a low offer, after a denial, or to file a supplemental claim months or years later (within applicable deadlines). Common situations where homeowners hire a PA: the carrier’s offer seems too low, the carrier missed damage during inspection, the carrier denied the claim, or the homeowner doesn’t know how to document the loss properly.

Are public adjusters licensed and regulated?

Yes. Public adjusters in Texas are licensed and regulated by the Texas Department of Insurance (TDI) under Texas Insurance Code Chapter 4102. Public adjusters in Florida are licensed and regulated by the Florida Department of Financial Services (DFS) under Florida Statute §626.854. Both states require examinations, continuing education, bonding, written contracts, and adherence to specific conduct standards. Policyholders can verify a public adjuster’s license through the state insurance department’s online lookup tool.

Do I have the right to hire a public adjuster?

Yes. Both Texas and Florida law expressly recognize the policyholder’s right to hire a licensed public adjuster to represent them in a property insurance claim. Insurance companies cannot refuse to work with a public adjuster, cannot retaliate against a policyholder for hiring one, and cannot make the claim contingent on the policyholder waiving the right to representation.

Can a contractor act as my public adjuster?

No. In Texas, contractors are prohibited from acting as public adjusters or negotiating insurance claims on a homeowner’s behalf unless they hold an active public adjuster license. The Texas Insurance Code expressly separates the role of contractor (who repairs the property) from the role of public adjuster (who represents the policyholder in the claim). Florida has similar prohibitions. If a contractor offers to negotiate your claim with the insurance company, ask to see their public adjuster license. If they don’t have one, they cannot legally do that work.

Does hiring a public adjuster delay the claim?

No. In most cases, hiring a public adjuster speeds up the claim because the PA submits complete, professional documentation from the start, which reduces back-and-forth with the carrier. The carrier still has to follow the same statutory timelines (Texas Insurance Code Chapter 542 for Texas claims; Florida Statute §627.70131 for Florida claims) regardless of whether a public adjuster is involved.

What types of insurance claims can a public adjuster handle?

Public adjusters can handle any first-party property insurance claim: residential homeowners claims, commercial property claims, business interruption, condo and apartment claims, fire damage, water damage, hurricane and storm damage, hail damage, mold, plumbing leaks, and denied claims. Public adjusters cannot handle third-party liability claims, auto claims, or workers’ compensation claims — those involve different licenses and different state regulatory schemes.

Policyholder Guide

What Is a Public Insurance Adjuster?

A public insurance adjuster is a state-licensed insurance professional who represents policyholders \u2014 not insurance companies \u2014 in property insurance claims.

By Joshua Osteen, Licensed Public Adjuster (TX #2237777, FL #W045717) · ~10 min read

Quick Answer

A public insurance adjuster is a state-licensed insurance professional who works exclusively for policyholders \u2014 never for insurance companies \u2014 in first-party property insurance claims. Public adjusters inspect damage, prepare detailed estimates, review policies, and negotiate with the carrier on the policyholder\u2019s behalf. They are paid on a contingency basis (typically 10% in Texas, up to 20% in Florida) so the policyholder pays nothing unless money is recovered. Public adjusters are licensed by state insurance departments and are NOT attorneys \u2014 they handle documentation and valuation, not legal advice.

The Three Types of Adjusters in a Property Insurance Claim

Most homeowners do not know there are three different types of insurance adjusters \u2014 and they work for very different parties. Knowing the difference is the foundation of understanding what a public adjuster does and why it matters.

Staff Adjuster

An employee of the insurance carrier. Paid a salary by the carrier. Investigates and values claims under the carrier\u2019s internal guidelines.

Works for: Insurance company

Independent Adjuster

A contractor hired by the insurance carrier (often during catastrophe deployments). Paid per file by the carrier. Works under the carrier\u2019s claims guidelines.

Works for: Insurance company

Public Adjuster

A state-licensed adjuster hired by the policyholder. Paid on contingency (percentage of recovery) by the policyholder. Works only for policyholders \u2014 never insurance companies.

Works for: You (the policyholder)

How Are Public Adjusters Paid?

Public adjusters in Texas and Florida are paid on a contingency fee basis: a percentage of the insurance settlement the public adjuster recovers for the policyholder. There are no hourly fees, no upfront retainers, and no charges if the public adjuster does not recover money. State law caps the contingency fee:

Texas: 10% maximum, set by Texas Insurance Code Chapter 4102.
Florida: 20% maximum under normal circumstances, reduced to 10% during the first year following a declared state of emergency. Set by Florida Statute \u00a7626.854.

The contingency fee structure aligns the public adjuster\u2019s financial interest with the policyholder\u2019s outcome \u2014 the PA only gets paid when the policyholder gets paid.

How a Public Adjuster Handles Your Claim

A walkthrough of the typical 6-step process a licensed public adjuster follows from first contact through settlement.

Free Policy & Claim Review

The public adjuster reviews your insurance policy, the damage, and any prior communications with the insurance company. This consultation is typically free and helps determine whether the PA can help.

Written Public Adjuster Contract

If you hire the PA, both parties sign a written contract that complies with state law. The contract specifies the scope of services, the contingency fee percentage, and your right to cancel within the statutory window.

Property Inspection & Documentation

The PA inspects the damage thoroughly. Modern inspections often include photo documentation, video, drone imagery (where applicable), moisture meters, and thermal imaging. Every item of damage is logged.

Xactimate Estimate Preparation

The PA prepares a line-item estimate using Xactimate — the industry-standard property damage estimating software used by most insurance carriers and contractors. The estimate becomes the basis for negotiation with the carrier.

Claim Submission & Negotiation

The PA submits the claim package to the insurance carrier, attends the carrier’s inspection, responds to carrier requests, and negotiates with the carrier’s adjuster to resolve disputes over scope and value.

Settlement

Once the carrier and policyholder agree on the loss amount, the carrier issues payment. The PA’s contingency fee is paid from the settlement — the policyholder pays nothing if the PA does not recover money.

When Should You Hire a Public Adjuster?

Before Filing the Claim

A PA can ensure the claim is documented properly from the very first inspection — often the highest-leverage time to be involved.

After a Low Offer

If the carrier’s offer seems too low compared to actual repair costs, a PA can document missed damage and renegotiate.

After a Denial

A PA can review a denied claim, gather additional evidence, and submit a supplemental request to the carrier.

For a Supplemental Claim

If new damage is discovered during repairs (months after the initial settlement), a PA can file a supplemental claim within applicable deadlines.

For Complex Commercial Losses

Commercial claims involving business interruption, code upgrades, and multiple coverage types typically benefit most from professional representation.

When You Don’t Know How to Document

If you don’t know how to take inspection photos, prepare estimates, or invoke policy provisions, a PA fills the knowledge gap.

Related Resources

Insurance Appraisal Guide

Complete guide to the insurance appraisal clause: what it is, how to invoke it, the 8-step process, who pays, and TWIA/Texas FAIR Plan exceptions.

Insurance Umpire Guide

What umpires do, how they\u2019re selected, qualifications, cost, and the decision process.

Hire DCS as Your PA

DCS Public Insurance Adjusters represents policyholders in TX & FL. Free claim review, contingency fee only.

Frequently Asked Questions

Educational Information \u2014 Not Legal Advice

The information on this page is for general educational purposes only. Dependable Claims Specialists is a licensed public adjusting firm \u2014 not a law firm. Public adjusters help policyholders document, value, and negotiate property insurance claims; we do not practice law and we do not provide legal advice. For legal questions about your specific situation, including questions about coverage disputes, statute interpretation, or your legal rights, consult a licensed attorney in your state. Texas public adjusters operate under TX Ins. Code Chapter 4102; Florida public adjusters operate under FL Statute \u00a7626.854.

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