An insurance adjuster investigates and documents an insurance claim, reviews the relevant policy terms, and provides information the insurer uses to evaluate coverage and settlement. Company and independent adjusters work for the insurer; a public adjuster is hired by the policyholder and paid by them. You do not have to hire a public adjuster to file or receive payment on a claim.
What does an insurance adjuster do?
An adjuster evaluates a reported claim. For property damage, that can include inspecting the property, reviewing documents and policy terms, recording damage, and estimating the loss. The insurer uses the adjuster’s findings to help decide what the policy covers and what it may pay. The precise work varies with the claim and applicable state law. The NAIC’s State Licensing Handbook and consumer guidance from Maryland describe these roles and claim functions.
Who does the adjuster represent?
The key distinction is who hires and pays the adjuster, and whose interests the adjuster represents. “Independent” does not mean neutral between the policyholder and insurer: an independent adjuster is hired by an insurer.
| Adjuster type | Who hires and pays | Whose interests are represented | Relationship to insurer | Does the policyholder pay directly? |
|---|---|---|---|---|
| Company or staff adjuster | The insurer | The insurer’s | Insurer employee | No |
| Independent adjuster | The insurer | The insurer’s | Contractor hired by the insurer | No |
| Public adjuster | The policyholder | The policyholder’s | Professional retained by the policyholder | Yes, under the agreed compensation arrangement |
These distinctions are described by the NAIC, the Maryland Insurance Administration, the Illinois Department of Insurance, and the Pennsylvania Insurance Department.
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Company or staff adjuster
A company adjuster is an insurer’s employee who assesses claims for that insurer. Maryland describes this adjuster as working only for the insurer that hires and pays them.
Independent adjuster
An independent adjuster works on a contract basis for an insurer. Insurers may use these adjusters to handle claims or add capacity. The policyholder does not pay the independent adjuster directly.
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Public adjuster
A public adjuster is hired by the policyholder to help prepare, present, or negotiate a claim. The policyholder pays according to the arrangement in their contract. The NAIC handbook defines the role this way: “The role of a public adjuster is to represent an insured or claimant in the settlement of a claim.”
What happens after you report a property claim?
Once you report a loss, the insurer may send its adjuster to assess the damage. Before cleanup or disposal makes it harder to document what happened, the NAIC advises policyholders to:
- Photograph or record video of damage.
- Make a list of damaged or lost belongings.
- Preserve damaged items when possible.
- Contact the insurer promptly and follow the policy’s reporting requirements.
These steps are especially useful after a disaster, when damaged property may need to be moved. The NAIC’s natural-disaster claim guidance explains the documentation steps and notes that policies commonly set time requirements for reporting a loss.
Do you need to hire a public adjuster?
No. Hiring a public adjuster is optional; the insurer can send its own adjuster to assess a reported claim. Pennsylvania’s Insurance Department states, “You are NOT required to hire a public adjuster for the insurance company to pay your claim.” That statement is Pennsylvania consumer guidance, not a rule specific to every state. A public adjuster may be useful if you want paid help reviewing coverage, documenting or estimating damage, or negotiating with the insurer.
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What to check before signing
- License: Verify the adjuster with your state insurance department or regulator.
- Services: Read the written contract to see exactly what work is included.
- Compensation: Understand how the fee is calculated and how it could affect the amount available for repairs. Fees and contract rules vary; the available state guidance does not establish one verified nationwide average or universal fee cap.
- Experience: Pennsylvania advises asking about experience and references.
- Your contractor choice: Pennsylvania says you may choose your own contractor.
- Local contract rules: Check your state’s requirements before signing. Illinois, for example, provides state-specific contract and cancellation rules; those should not be assumed to apply elsewhere.
How do adjuster licensing rules vary by state?
Adjuster licensing requirements depend on the state and the type of adjuster. The NAIC’s 2020 State Licensing Handbook says more than 30 states require licenses for one or more types of adjusters. That is the handbook’s dated figure, not a current state-by-state count. The handbook also describes exemptions and model guidance, but it is not a substitute for checking current state law.
Illinois, Pennsylvania, and North Carolina have their own public-adjuster licensing or contract requirements. For rules that apply to your claim, consult your state insurance department or regulator rather than assuming another state’s consumer guidance applies.
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