What is a 'public adjuster'?

Adjusters in property insurance come in three categories: (1) Staff adjusters employed by the insurer; (2) Independent adjusters hired by the insurer on contract; (3) Public adjusters licensed by the state to represent policyholders, working for the insured against the insurer. Public adjusters typically work on contingency (10-20% of the claim settlement) and are commonly used for large or complex losses where the homeowner feels outmatched negotiating with the insurer's adjuster. State licensing standards for public adjusters vary; some states heavily regulate fees, contracts, and practices. Public adjusters are not for every claim — small claims often settle fairly without representation, and the contingency fee comes out of the policyholder's recovery. They are most valuable for large fires, complex losses, business interruption claims, and disputed claims.