How Do Public Adjusters Get Paid? What You Should Expect
When dealing with the aftermath of property damage whether from a storm, fire, or water leak many homeowners consider hiring a public adjuster to help navigate their insurance claim. One of the first questions that often comes up is:
How Are Public Adjusters Paid, and What Does That Mean for Me as a Homeowner?
The good news is that most public adjusters work on a contingency basis meaning they only get paid if you do. Here’s what that means in plain language, and what you should expect if you hire one.
How Are Public Adjusters Paid, and What You Need to Know?
Public adjusters are usually paid through a contingency fee a percentage of the final settlement amount they secure for you. This means:
- No upfront costs
- No hourly fees
- No payment unless they recover money for you
It’s a performance-based model designed to align your adjuster’s interests with yours. The more they recover for you, the more they earn which motivates them to fight hard on your behalf.
What’s a Typical Contingency Fee?
In states like Georgia and Ohio, public adjusters typically charge up to 20% of the total claim payout. However, Tennessee enforces a stricter limit, capping public adjuster fees at 10% of the claim amount. The actual fee percentage in states without caps often depends on several factors:
- Claim size and complexity
Larger, more complicated claims may warrant a higher percentage. - Stage of involvement
If the adjuster is hired early in the process, the fee may be lower. If they are brought in after a claim has been denied or underpaid, the fee may be higher due to the added difficulty and time required. - State-specific laws
Some states, like Florida, cap public adjuster fees during declared disasters, often at 10% for the first year after the event.
When Does a Public Adjuster Get Paid?
Your public adjuster only gets paid after your insurance claim is successfully settled and the payment is issued by your insurance company. Here’s how the process usually works:
- You sign a contract outlining the adjuster’s fee structure.
- The adjuster works on your behalf inspecting damage, preparing estimates, and negotiating with the insurance company.
- The insurer issues a settlement check, often made out to both you and the public adjuster.
- Both parties endorse the check, and the agreed-upon fee is paid from the settlement.
- The remaining balance goes to you or to your contractor, if repairs are already underway.
There are no surprise charges, and no bills sent after the fact. If the adjuster doesn’t recover money for you, they don’t get paid. Period.
Example: How Contingency Payment Works
Let’s say your insurance company initially offers you $18,000 for hail damage to your roof. You feel it’s low and hire a public adjuster, who then documents additional structural and interior damage and negotiates a new payout of $35,000.
- If your adjuster charges 10%, their fee would be $3,500
- You walk away with $31,500, significantly more than the original offer even after the fee
This is the power of having a skilled advocate in your corner.
Why Is Contingency-Based Pay Good for Homeowners?
Homeowners often wonder, “Isn’t it risky to hire someone during an already stressful situation?” The contingency model is designed to eliminate that risk. You don’t have to pay anything out-of-pocket and you are never on the hook if your adjuster doesn’t deliver.
This model provides:
- Affordability: No need to come up with money during a crisis.
- Accountability: Your adjuster only wins if you win.
- Transparency: Fees are agreed up front and tied directly to results.
How Spartan Public Adjusters Handles Payment
At Spartan Public Adjusters, we are completely transparent about how we get paid. Before we take on your case, we will walk you through:
- Our fee percentage
- When and how payment is made
- What happens in specific scenarios (like partial denials or supplemental claims)
We also don’t get paid until you do which means you can trust that our only goal is to maximize your claim and help you recover fully.
Need Help With Your Claim? Contact Spartan Public Adjusters Today.
Spartan Public Adjusters, LLC
(470) 870-7044
info@spartanpublicadjusters.com
