What's a Public Adjuster (And When Do You Need One)?

After every major disaster, people start talking about public adjusters. Should you hire one? Are they worth it? Are they scammers?

The answer is: it depends. (I know, not helpful. But stick with me.)

Let's break this down — the good, the bad, and the genuinely ugly — so you can make an informed decision BEFORE you're standing in six inches of water and someone knocks on your door offering to "help."

First: Who's Actually Looking at Your Damage?

When you file an insurance claim, someone has to assess what happened and figure out what it's worth. That person is called an adjuster. But here's what most people don't realize: there are different types, and they don't all have the same loyalties.

Insurance Company Adjuster: This is an employee of your insurance company. They're nice. They're professional. They work for the company that's about to write you a check. Think about that dynamic for a second.

Independent Adjuster: Don't let the name fool you. "Independent" doesn't mean they work for you. They're contractors hired BY insurance companies to handle the overflow during disasters. They also work for the side that's paying out the claim.

Here's a nuance though: Independent adjusters often get paid a percentage of the claims they process. So they MIGHT lean into helping you get a fair settlement because it benefits them too. But it's variable. During Milton, we saw friends have vastly different experiences — some got independent adjusters who were incredibly helpful and thorough. Others got adjusters who were so overwhelmed by volume that they basically closed cases without doing much of anything. It was a mixed bag.

Public Adjuster: This is the only type of adjuster who works exclusively for YOU, the policyholder. They review your policy, document your damage, and negotiate with your insurance company on your behalf.

The Good

Studies show claims handled by public adjusters often result in higher payouts than when homeowners handle claims alone.

Why? Because they know the game. They understand policy language (which, let's be honest, reads like it was designed to confuse you). They know what documentation insurance companies need. They know how to value damage properly. And they have experience negotiating with companies who aren't exactly motivated to pay you more.

The biggest value might be this: They do all the WORK for you. They take the photos. They create the inventory. They fill out the paperwork. They talk to the insurance company. When you're exhausted and overwhelmed and just trying to figure out where your family is going to sleep tonight, having someone handle all of that can be worth a lot.

The Bad (Let's Talk Money)

Public adjusters typically charge 10-20% of your settlement.

Let's do the math on a maximum NFIP claim ($250,000 building + $100,000 contents = $350,000 total):

• 10% fee: $35,000
• 15% fee: $52,500
• 20% fee: $70,000

That's coming out of YOUR settlement. Money you need to rebuild your home.

Important: Many states cap fees at 10% during declared emergencies. In Florida, the cap is 10% for the first year after an emergency declaration, then goes back to 20%. Know your state's rules.

Also important: the insurance company isn't required to accept the public adjuster's estimates. Having one doesn't guarantee a bigger settlement — it just means you have someone experienced in your corner.

The LazyPrep™ vs SmartPrep™ Decision

Here's how we think about it:

The honest question to ask yourself: How much is your time and sanity worth? What's the dollar amount where you'd rather just write a check and have someone else deal with this?

There's no wrong answer. But go in with your eyes open.

The Ugly (Scammers Are Real)

After every disaster, scammers descend like vultures.

They'll knock on your door while you're still in shock. They'll call themselves "loss consultants" or "insurance specialists" or "disaster recovery experts." They'll offer to handle everything — just sign here.

Some are unlicensed. Some will take your money and disappear. Some will refer you to contractors who kick back money to them. One public adjuster in California was sentenced to seven years in prison for embezzling $400,000 from fire victims.

This is why you need to understand this stuff NOW — before you're exhausted, stressed, and vulnerable to someone who seems like they just want to help.

Red Flags to Watch For

• They approach you unsolicited right after a disaster (legitimate adjusters don't need to chase ambulances)
• They want payment upfront (real public adjusters work on contingency — they get paid when you get paid)
• They pressure you to sign quickly ("This offer is only good today!")
• They can't or won't show you a license (every state licenses public adjusters)
• Something feels off (trust your gut — you're not in a position to make rushed decisions)

What to Do Instead (Or First)

1. Try working directly with your insurance company first. Their adjuster is free. Most claims can be handled without outside help.

2. If you do hire a public adjuster:

• Verify their license through your state's Department of Insurance
• Check the Better Business Bureau
• Get referrals from people you actually trust
• Read the contract carefully before signing

3. Know your rights:

• Most states give you 3 business days to cancel
• You can fire them if they're not performing
• You're entitled to copies of all documentation

4. Never sign anything "just as proof" they visited. That's a contract. Read it first.

The Bottom Line

Public adjusters exist because insurance claims can be genuinely complicated, and insurance companies aren't incentivized to make it easy for you. A good public adjuster can absolutely be worth the fee. A bad one — or a scammer — can make a terrible situation even worse.

The time to research this is when you're calm and dry. File this information away. Hopefully you'll never need it. 💙