Property claims glossary
What is a public adjuster?
A public adjuster is a licensed adjuster hired by the insured, not the carrier, to prepare and negotiate their claim, usually for a percentage of the settlement. Public adjuster involvement often signals that the family did not understand or did not trust the first answer, and it changes who the carrier works with on the claim.
Worked example · fictitious claim
A family hires a public adjuster at a 10% fee on a claim the carrier first valued at $40,000. The claim settles at $55,000, so the fee is 10% × $55,000 = $5,500 and the family nets $55,000 − $5,500 = $49,500.
How it affects a settlement
Once a public adjuster is involved, the carrier generally works through them, and payments are often issued with the public adjuster as a co-payee. The fee comes out of the family's settlement, not on top of what the carrier owes.
In practice
An adjuster engaged by the policyholder to negotiate their claim. Rising public-adjuster involvement on a carrier's book usually signals that policyholders don't trust the first answer. It's a lagging indicator of cycle time and communication quality.
Related
Adjuster · Cycle time · Reduce claims cycle time · property claims glossary