Public Adjuster Licensing Requirements

Public Adjuster Licensing Requirements

Ted Patestos
October 21, 2024
Claims Handling
Public Adjusting

When disaster strikes and your property is damaged, navigating an insurance claim can be overwhelming. One of the few allies that property owners can turn to during this time is a Public Adjuster. 

Unlike insurance adjusters who work for the insurer, Public Adjusters represent the interests of the policyholder (homeowners and commercial property owners). They assess property damage, estimate repair costs and negotiate with insurance companies to ensure fair settlements. But before you enlist their services, it's important to understand the licensing requirements that govern this profession.

The Importance of Licensing for Public Adjusters

The licensing of Public Adjusters ensures that individuals working in this field have a minimum level of knowledge and competence. It protects consumers from potentially unscrupulous or inexperienced practitioners who might take advantage of vulnerable policyholders in the aftermath of a disaster. Public Adjusters must be licensed in order to legally adjust claims. 

In most states, it is illegal for contractors to try to negotiate claims or represent themselves as Public Adjusters. This stance was recently confirmed in a case before the Texas Supreme Court (Araullo, 2024).

Proper licensing also establishes ethical standards and professional conduct guidelines that Public Adjusters must adhere to. This can also include rules about advertising, handling client funds and maintaining confidentiality. States can hold Public Adjusters accountable for their actions and revoke licenses when necessary.

Tiger Adjusters Public Adjuster reviewing a client's insurance policy

In addition, licensing creates a formal process for addressing complaints and resolving disputes. When a policyholder has issues with a licensed Public Adjuster, they can file a complaint with the state licensing board, which has the authority to investigate and take disciplinary action if warranted.

States Requiring Licensing for Public Adjusters

The licensing requirements for Public Adjusters can vary significantly from state to state. Currently, most U.S. states require Public Adjusters to be licensed, but the specific requirements and processes can differ widely. 

For example, some states, like California, Florida, and Texas, have some of the most robust licensing programs with strict education and examination requirements. These states often require applicants to complete pre-licensing courses, pass a state-specific exam and fulfill continuing education requirements to maintain their license. 

Other states may have less stringent requirements, but regulations can change. It's always best to check with your state's insurance department for the most up-to-date information. Use the Tiger Adjusters 50 state Public Adjuster database which includes links to government entities, licensing requirements, fees, and fee caps.

Tiger Adjusters license requirements for public adjusters
Infographic: Public Adjuster Licensing Steps

Many states also participate in reciprocity agreements, which allow licensed Public Adjusters from one state to obtain a license in another state more easily. This can be particularly useful for Public Adjusters who work in multiple states or in areas prone to natural disasters where out-of-state adjusters may be needed.

Additional Certifications

Public Adjusters can also opt to obtain other professional certifications. Organizations like the National Association of Public Insurance Adjusters (NAPIA) offer certification programs that demonstrate a commitment to professionalism and ongoing education. Consider looking for an adjuster who holds certifications such as the Certified Professional Public Adjuster (CPPA) or Senior Professional Public Adjuster (SPPA).

Despite state licensing, it’s also critical to thoroughly check an adjuster's references and experience. Ask for client testimonials, inquire about their experience with claims similar to yours, and don't hesitate to ask for references you can contact directly. A reputable Public Adjuster should be happy to provide this information.

The Future of Public Adjuster Licensing

As the insurance industry continues to evolve, so do the regulations governing Public Adjusters. States, including Georgia, Indiana and Florida, recently strengthened standards to better protect consumers and ensure high standards of professionalism in the field (Sams, 2023). 

While each state currently sets its own licensing requirements, efforts are being made to create more uniform standards nationwide (Hilton, 2023). This could potentially make it easier for Public Adjusters to work across state lines and for consumers to understand what qualifications to look for.

Regardless, if you encounter issues with a Public Adjuster, don't hesitate to reach out to your state's insurance department or a professional organization like NAPIA for guidance. The Tiger Adjusters 50 state Public Adjuster database includes a link to each state’s insurance oversight agency. The resources found there can provide valuable information and assistance if you need to look up a license, file a complaint or seek a resolution to a dispute.  

With the right knowledge, approach and an ally from Tiger Adjusters guiding the way, you can navigate the claims process with confidence. Let our team discuss your claim and options with you today. 

Bibliography

Araullo, K. (2024, June 12). TDI secures legal victory against roofing contractor. Insurance Business. Retrieved from: https://www.insurancebusinessmag.com/us/news/legal-insights/tdi-secures-legal-victory-against-roofing-contractor-493010.aspx

Sams, J. (2023, May 13). More States Adopted Professional Standards for Public Adjusters This Year. Insurance Journal. Retrieved from: https://www.insurancejournal.com/news/southeast/2023/05/16/720905.htm

Hilton, J. (2023, September 26). NCOIL debates fee caps for public adjusters in proposed model law. Insurance Newsnet. Retrieved from: https://insurancenewsnet.com/innarticle/ncoil-debates-fee-caps-for-public-adjusters-in-proposed-model-law

Ted Patestos
Based on research and first-hand experience within the claims industry, Ted Patestos developed system methodologies and invested in various software platforms to reduce claim friction to enhance the public adjusting industry and increase value to consumers and fellow adjusters.
CONTACT AUTHOR

FAQ

When should I hire a Public Adjuster?
When should I hire a Public Adjuster?
Minor damage does not normally require a Public Adjuster. But for significant insurance claims, such as roof damage, flooding, or fire, or when you feel the insurance company isn't playing fair, it's wise to bring on a Public Adjuster. You can hire a Public Adjuster before a claim is filed, during an open claim and after a claim is settled (state law varies on the timeline to reopen a settled claim).
Do Public Adjusters work for insurance companies?
Do Public Adjusters work for insurance companies?
No, Public Adjusters do not work for an insurance company. They legally work and advocate for you, the homeowner or commercial property owner (policyholder).
How much can I expect to pay a Public Adjuster?
How much can I expect to pay a Public Adjuster?
Most Public Adjusters work on a contingency fee basis. Typically, they charge a percentage of the settlement, often ranging from 5% to 40%. That means they only get paid if you do. Rates can vary, so always clarify upfront. Tiger Adjusters has created a 50 State Public Adjuster Database that provides fees, fee caps and legal information.
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