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How Much is the Public Adjuster Fee and When Do You Have to Pay It?

Public adjusters do make it very easy and fast for you to get insurance money but what do they charge?

What is the public adjuster fee?

When do you have to pay it?

Is there any state or federal law dictating how much can a public adjuster charge?

We'll clear all these confusions today via this blog post.


How is Public Adjuster Fee Calculated?

The fee you have to pay for hiring the services of a public adjuster can be calculated using one of the three following methods. It is up to the public adjuster what way they choose.

  1. Flat Rate

    Some public adjusters work on a flat rate basis. This is not a common way of billing used by public adjusters though.

    A flat rate is charged when:

    • The case has no apparent difficulties in it.
    • The payout for the case is relatively huge.

    The rate charge in such cases mainly depends on:

    • The magnitude of the case.
    • The complexity level of the case.
    • The expertise and goodwill of the public adjuster.

    The next way of calculating public adjuster fee is the least common one.

  2. Hourly Rate

    This way of billing is used by some of the public adjusters. The fee you'll have to pay if the public adjuster uses this billing mode will depend on:

    • The state laws regarding hourly fee.
    • The operational costs of the public adjuster.
    • The level of complexity of your case.
    • The time taken to solve the case.

    Now, let's see the most commonly used billing method.

  3. Contingency Based Fee

    Most of the public adjusters use this method of billing. It is a percentage of the compensation you get from the insurer. This fee depends on:

    • The nature of the case.
    • The amount of time needed to solve the case.
    • The state where the case is being pursued.

    So, that's how the public adjuster fee is calculated, but when do you have to pay it?


When do you Have to Pay Public Adjuster Fee?

Most of the public adjusters do not charge any fee upfront. The inspection and policy review services are mostly provided for free. You will only be charged once you get the compensation from the insurance company.


Are There Any Laws About Public Adjuster Fee?

There are no federal laws dictating how much and when a public adjuster can charge. However, some states have laws in place for this. These laws, roughly, are:

  • Public adjusters are prohibited from charging any fee before the client accepts a final compensation from the insurance agency.
  • Public adjuster fee is generally limited by most of the states to no more than 20$ of the claim amount.

Note: The laws described here are not applicable in all of the states. Different states have different laws for how, when, and how much a public adjuster can charge.

ACI Adjustment Group Services

ACI Adjustment group provides assistance with insurance claim investigation in storm, fire, water damage, and all other common insurance claims. The services we provide include:
  • Insurance policy review to help you understand the terms and conditions of your insurance policy.
  • Evaluating damages that are covered under your insurance policy.
  • Proving the damages done to your property so that you get claim money according to the damage.
  • Following up with your insurance claim process to get it processed fast.

Contacting Us

If you want assistance in any property insurance related issue, you can contact us 24/7 via our toll free number 1-800-809-4302 or by filling in the contact form on our website or by sending us an email at claims@aciadjustment.com.