When your home or business suffers damage—whether it's from a fire, water leak, storm, or other covered event—filing an insurance claim can be overwhelming. It’s not just about dealing with the insurance company; it’s also about ensuring you get a fair payout for your losses. This is where a public adjuster can help.
But one of the common questions people have is: How much does it cost to hire a public adjuster?
In this post, we’ll break down the typical fees for hiring a public adjuster, what you get for that cost, and whether it’s worth the investment.
What is a Public Adjuster?
A public adjuster is a licensed professional who advocates for policyholders when filing insurance claims. Unlike insurance company adjusters, who work on behalf of the insurer, public adjusters represent you—the policyholder. They help assess the damage, document your losses, negotiate with your insurance company, and ensure you receive the maximum possible settlement.
Hiring a public adjuster is especially helpful in complex or high-value claims, where understanding the full scope of damage and the policy’s terms can be difficult.
How Much Does a Public Adjuster Charge?
Public adjusters typically work on a contingency fee basis. This means they only get paid if you receive a settlement from your insurance claim. The average fee for hiring a public adjuster is around 10% of the total insurance settlement amount.
However, this can vary depending on several factors:
State Regulations: Many states regulate the fees public adjusters can charge. For example, in Michigan, the fee can be capped at 10%, while in others, it can go higher (typically not exceeding 20%). Be sure to check your state's specific laws before agreeing to any contract.
Complexity of the Claim: If your claim is particularly complex, such as a large commercial property claim or one involving extensive damage, the public adjuster may charge a higher fee due to the increased time and effort required.
Negotiation and Settlement: A good public adjuster will work to maximize your claim settlement. This means that even with their fee, you may end up with a higher payout than you would have received on your own.
What Do You Get for the Fee?
The main value a public adjuster provides is their expertise in navigating the insurance claims process. Here's what they typically do for their fee:
Assess and Document Damage: The public adjuster conducts a thorough inspection of the damage, documents it, and helps you understand the full scope of the loss. This includes creating an inventory of damaged or lost property and estimating repair or replacement costs.
File and Manage the Claim: The adjuster will handle all the paperwork involved in your insurance claim, ensuring that everything is filed correctly and on time. They’ll also communicate directly with the insurance company, alleviating you of the stress of constant back-and-forth.
Negotiate the Settlement: One of the most valuable services a public adjuster provides is negotiating the payout with your insurance company. Insurance companies often offer lowball initial settlements, and public adjusters use their experience to ensure you receive a fair and adequate payout based on the full extent of your loss.
Provide Peace of Mind: A public adjuster takes the burden of managing the claim off your shoulders, allowing you to focus on recovering and rebuilding, instead of dealing with a complex and time-consuming claims process.
Is Hiring a Public Adjuster Worth It?
The cost of hiring a public adjuster is an investment in getting the most out of your insurance policy. While you’ll need to factor in the fee, many people find that the extra payout they receive from their insurance company more than justifies the expense. In fact, studies show that policyholders who use a public adjuster often receive settlements that are significantly higher than those who handle claims on their own.
Consider the following when deciding if you should hire a public adjuster:
Do you feel confident in understanding your policy? If you don’t fully understand your coverage, exclusions, or the claims process, a public adjuster can help you make sense of it all and ensure you don’t miss out on important coverage.
Is your claim large or complex? Larger claims—whether from a commercial building fire, water damage to a multi-unit home, or any other high-value loss—often involve intricate details. A public adjuster can be particularly valuable in these situations.
Is your insurer offering a low settlement? If the insurance company’s initial offer seems too low, hiring a public adjuster could increase your chances of getting a fair settlement.
Final Thoughts
While the cost of hiring a public adjuster is typically around 10% of your settlement, the value they provide in terms of expertise, time savings, and a potentially higher payout is often well worth the fee. Especially if your claim is complex or large, having a professional on your side can make a significant difference in your overall recovery process.
With the right public adjuster, you’ll have a dedicated advocate helping you get the compensation you deserve. The team at Advocate Claims Services is ready to help you and fight for every dollar you're entitled to.
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