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Public adjusters: What to know before you hire one to help with your claim

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Hiring a public adjuster is one of your options if your homeowners claim is denied or you think your insurance company should pay more for repairs.

Man taking photos of a damaged roof

  1. What does a public insurance adjuster do?

    You can hire a public insurance adjuster to negotiate with your insurance company to settle your claim. Public insurance adjusters understand the claims process and are licensed by TDI.

  2. How much do they cost?

    Public adjusters can charge up to 10% of the total amount the company will pay for your claim. The fee can be based on the total amount of the claim settlement, not just the amount you’re disputing.

    For example: If the company wants to pay $100,000 for your claim and you’re disputing $20,000, the public adjuster could charge $10,000.

    You can ask the public adjuster to put their fee in a dollar amount, instead of a percentage, in the contract.

    If your insurance company doesn’t increase its offer after you hire the public adjuster, you might still have to pay the public adjuster. And you still have to pay your deductible.

  3. How do I choose a public insurance adjuster?

    • Ask friends and family if they’ve ever used a public insurance adjuster and which one.
    • Check online for consumer reviews to find out if the public insurance adjuster provides good service.
    • Call our Help Line at 800-252-3439 to find out:
      • If the public insurance adjuster is licensed by TDI.
      • How many complaints have been filed against the public insurance adjuster.
      • If TDI has taken any disciplinary actions against them.

  4. What can’t a public adjuster do?

    Under Texas law, public insurance adjusters who work on your claim can’t act as your contractor. Likewise, contractors can’t advertise that they’ll handle your insurance claim. 

    Public adjusters also can’t:

    • Knock on your door asking for business during a natural disaster or after 9 p.m.
    • Wear a badge while they’re working as a public insurance adjuster.
    • Practice law or provide legal advice.
    • Work on health care claims.
    • Get referral fees from attorneys, contractors, or anyone else involved in your claim.
    • Keep you from talking with your insurance company.

    To report a public adjuster, call the Texas Department of Insurance at 800-252-3439 or file a complaint.

  5. What should I look for before I sign a contract?

    • Ask the public insurance adjuster how much they charge. You can try to negotiate a lower fee.
    • Make sure the contract answers these questions:
      • Will you inspect my damaged property?
      • Will you talk to my insurance company and ask for a larger amount?
      • How long will it take you to settle my claim?

    If you change your mind, you have 72 hours after you’ve signed a contract to cancel it. You can’t get out of the contract after 72 hours.

    See a sample contract (PDF).

  6. Still not happy with your claim?

    Learn more about your options if you’re not happy with the outcome of your claim.

    If you’re having issues with your public insurance adjuster, you have the right to sue. You can use these resources to find legal help.

Resources

 

Questions? Call us at 800-252-3439.

Last updated: 6/4/2024