One of the most common questions before hiring a public adjuster is simple: how do they actually get paid? Here is the model, in plain terms.
It is contingency-based
Public adjusters are typically paid a percentage of the settlement they help recover — agreed with the policyholder up front, in writing, before any work begins. If there's no recovery, there's no fee. The exact percentage varies by adjuster, by state, and sometimes by the size or type of loss, so it should always be spelled out in the contract, not assumed.
It's a percentage of the CLAIM, not a flat fee
Because the fee is a share of what gets recovered, a public adjuster is financially aligned with maximizing a fair, fully-documented settlement — not with closing the file quickly for a fixed price.
It is never a fee on money you were already going to get
A public adjuster's fee applies to what their work adds to the claim, not to coverage the insurer would have paid regardless. Read any contract carefully for how it defines the base the percentage is calculated against.
Some states cap or regulate the fee
A number of states set rules around public adjuster fees — caps, disclosure requirements, or restrictions during a declared emergency. Check your state's specific regulations, since they differ and change.
Get it in writing, and read the cancellation terms
A licensed public adjuster should provide a written contract before starting work, stating the fee percentage, what it applies to, and the cancellation terms. Ask questions about anything unclear before signing — a reputable adjuster will welcome them.
Want the exact fee terms for your specific claim, in writing?