Public adjusters aren’t like lawyers. You don’t pay a public adjuster an hourly fee.
In fact, many policyholders are surprised to learn that most public adjusters don’t charge any fees until the final settlement is reached with your insurance company.
It’s true: just like personal injury lawyers, many public adjusters work on a contingency fee basis. You pay nothing upfront. Then, the adjuster takes a pre-arranged percentage of the final payout from your insurance company. In many states, laws prohibit public adjusters from charging a fee or accepting any kind of compensation prior to the settlement of the claim.
This unique payment structure ensures the adjuster has an incentive to push for a higher settlement. The higher the payout from your insurance company, the more money the public adjuster will make.
When hiring a public adjuster, it’s crucial that you discuss payment terms upfront. All honest public adjusters will carefully explain their fee structure before they begin working on your behalf.
Typically, public adjusters charge fees between 5% and 15%. If you’re hiring an expert-rated public adjuster, then you can expect to pay a higher fee. Some public adjuster companies even charge fees as high as 25% or 35%. This is why it’s important to clarify the fee structure upfront before you hire an adjuster. Many states have a cap on the percentage that public adjusters are allowed to charge.
Remember that a good public adjuster can help you earn a settlement that is significantly higher than the payout initially offered by your insurance company. By pushing for a higher settlement, the public adjuster gets a higher fee, you get more money for your claim, and the insurance company pays what is needed to help recover after a loss. You and the public adjuster both “win”.
With larger property claims cases – say, cases involving a payout over $100,000 – you may be able to negotiate a smaller fee with a public adjuster.
In any case, make sure you clarify fee structure upfront before hiring a public adjuster. A good public adjuster is worth his or her weight in gold. It’s a service well-worth paying for.
