When Should You Hire a Public Adjuster for Your Insurance Claim?

What does a public adjuster do?

A public adjuster inspects your property damage, prepares a detailed estimate of repair costs, files and negotiates your claim with the insurance company on your behalf, and works to maximize your settlement. They understand XactimateHow Insurance Estimates Work: Xactimate Explained for HomeownersNearly every insurance repair estimate in the United States is created using Xactimate, a specialized software program. Understanding how Xactimate...
Read more →, building codes, construction costs, and insurance policy language. Think of them as your advocate in the claims process, the same way a tax accountant advocates for you with the IRS.

When does hiring one make sense?

Consider a public adjuster when your claim is over $10,000-$15,000, when you feel the insurance estimate is too low, when the damage is complex (water damage with mold, structural damage, multiple trades), when you are too busy to manage the claim yourself, or when your insurer is being difficult or slow. For small, straightforward claims, you may not need one.

What do they charge?

Public adjusters typically charge 5-15% of the settlement amount. Some charge a flat fee for smaller claims. On a $50,000 claim, a 10% fee would be $5,000.

However, studies consistently show that claims handled by public adjusters result in higher settlements, often 30-50% more than what homeowners receive on their own. The increased settlement usually more than covers the fee.

How to find a good public adjuster

Look for a licensed public adjuster in your state. Check their reviews and references. Ask how many claims they handle at once (too many means less attention to yours).

Ask about their Xactimate experience and whether they write their own estimates. Avoid anyone who asks for payment upfront before doing any work. The fee should be based on the final settlement amount.

What to do

If you believe your insurance estimate is too low or your claim is complex, get a free consultation from a public adjuster. Most offer free initial assessments. Compare their preliminary scope of work to your insurance estimate.

If there is a significant difference, hiring them may be worthwhile. Remember, you can hire a public adjuster at any point during the claim process, even after an initial settlement has been offered.