Public Adjuster vs Insurance Adjuster

The Three Types of Insurance Adjusters

When you file an insurance claim after property damage, the word "adjuster" gets used a lot — but not all adjusters are the same. There are three distinct types of adjusters involved in property insurance claims, and the most important thing you can understand is who each one works for.

Two of these adjuster types work for the insurance company. Only one works for you. Knowing which is which can mean the difference between a fair settlement and thousands of dollars left on the table.

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Staff Adjuster

Works for the insurance company

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Independent Adjuster

Contracted by the insurance company

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Public Adjuster

Works for you (the policyholder)

Insurance Company Adjusters (Staff Adjusters)

A staff adjuster — also called a company adjuster or insurance adjuster — is an employee of your insurance company. When you file a claim, the insurance company assigns a staff adjuster to evaluate your loss, inspect the damage, and determine how much the company will pay.

Staff adjusters are salaried employees. They receive their paycheck from the insurance company regardless of how your claim settles. Their job performance is evaluated by their employer — the insurance company — based on factors like claims handled per month, average settlement amounts, and adherence to company guidelines.

What a Staff Adjuster Does

• Inspects your property damage on behalf of the insurance company
• Prepares a damage estimate using the insurer's preferred estimating software and guidelines
• Determines what damage is covered under your policy from the insurer's perspective
• Makes an initial settlement offer based on the company's assessment
• Manages the claim through to resolution for the insurance company

Key point: A staff adjuster's obligation is to their employer — the insurance company. While many staff adjusters are professional and honest, their role is inherently to protect the insurance company's financial interests. They are not your advocate.

Independent Adjusters

Independent adjusters are claims professionals who work as contractors, not as direct employees of any single insurance company. They are hired by insurance companies on a per-claim or per-project basis, particularly during catastrophe events when the insurer's staff adjusters cannot handle the volume of claims.

The name "independent" is misleading. While independent adjusters are not permanently employed by one insurer, they are paid by and contracted to the insurance company for each assignment. They follow the insurance company's guidelines, use the insurer's estimating software, and report their findings to the insurance company — not to you.

How Independent Adjusters Are Typically Used

• Catastrophe response: After hurricanes, wildfires, or other widespread events, insurers bring in independent adjusters (sometimes called "cat adjusters") to handle the surge in claims
• Geographic coverage: For claims in areas where the insurer does not have staff adjusters nearby
• Specialty claims: For complex claims that require specialized knowledge (such as marine, aviation, or large commercial losses)
• Overflow work: When the insurer's in-house staff is overloaded with claims

Key point: Do not assume that an "independent" adjuster is neutral or working in your interest. The word "independent" refers only to their employment structure — they are independent contractors, not independent advocates. Their client is the insurance company.

Public Adjusters

A public adjuster is a licensed claims professional who works exclusively for policyholders. Unlike staff adjusters and independent adjusters, public adjusters have no relationship with the insurance company. They are hired by you, represent your interests, and are paid by you — typically on a contingency fee basis, meaning they only earn money when you receive a settlement.

Public adjusters are licensed and regulated by state departments of insurance. In Florida, they are licensed by the Department of Financial Services (DFS). In Texas, they are licensed by the Texas Department of Insurance (TDI). Licensing requires passing state examinations, maintaining continuing education credits, and carrying a surety bond to protect consumers.

What a Public Adjuster Does for You

• Conducts a thorough, independent inspection of your property damage
• Reviews your insurance policy to identify every coverage that applies to your loss
• Prepares a comprehensive claim package with professional documentation and detailed estimates
• Negotiates directly with the insurance company to maximize your settlement
• Handles all communication, paperwork, and follow-ups on your behalf
• Can reopen denied claims or challenge underpaid settlements

Key point: A public adjuster is the only type of adjuster who has a legal duty to represent your interests. Their fee is a percentage of your settlement, so they are financially incentivized to get you the highest payout possible. You and your public adjuster are on the same side.

To learn more about what public adjusters do and how the process works, read our complete guide: What Is a Public Adjuster?

Side-by-Side Comparison: Public Adjuster vs Insurance Adjuster vs Independent Adjuster

The following table summarizes the key differences between the three types of adjusters. The most important column is "Who They Work For" — this determines everything else about how the adjuster approaches your claim.

Factor	Public Adjuster	Staff Adjuster	Independent Adjuster
Who they work for	You (the policyholder)	The insurance company	The insurance company
Who pays them	You (contingency fee from settlement)	Insurance company (salary)	Insurance company (per-claim contract)
Employment type	Self-employed / firm owner	W-2 employee of insurer	1099 contractor
Whose interests they represent	Your interests	Insurance company's interests	Insurance company's interests
Financial incentive	Higher settlement = higher fee	Salary (no direct incentive tied to settlement amount)	Paid per claim; incentive to close quickly
Licensing	State public adjuster license required	Varies by state; company adjuster license	Varies by state; adjuster license
Surety bond required	Yes (consumer protection)	No	Varies
When they get involved	When you hire them (before or after filing a claim)	Automatically assigned by insurer when you file a claim	Assigned by insurer, often during catastrophe events
Cost to you	Contingency fee (10–20% of settlement)	Free (paid by your premiums)	Free (paid by insurer)

The Conflict of Interest Problem

The fundamental issue in the insurance claims process is a built-in conflict of interest. Your insurance company is a business. Every dollar paid out on claims is a dollar that reduces the company's profits. The adjusters they employ — whether staff or independent — work within that reality.

This does not mean insurance company adjusters are dishonest. Most are trained professionals doing their job within the guidelines given to them. But those guidelines are set by the insurance company, and the company's interests do not always align with yours. Common ways this conflict manifests include:

Underscoping Damage

The insurance company's adjuster may not inspect every room, every wall, or every system in your home. Damage that is not documented does not get paid for. Public adjusters conduct far more thorough inspections, often finding 2-3 times more damage than the initial insurance assessment.

Applying Excessive Depreciation

Insurance adjusters may depreciate damaged items more aggressively than warranted, reducing the payout. For example, a 10-year-old roof might be depreciated 50% when the actual useful life remaining was significantly more. A public adjuster challenges unreasonable depreciation calculations.

Missing Applicable Coverages

Many homeowners do not know about coverages like additional living expenses, code upgrade requirements, debris removal, or overhead and profit allowances for contractors. The insurance adjuster is under no obligation to point out coverages that would increase your payout.

Using Lower-Than-Market Repair Costs

Insurance company estimates may use material and labor rates that are lower than what local contractors actually charge. This leaves you with a settlement that does not cover the real cost of repairs. Public adjusters use current local market pricing in their estimates.

A public adjuster eliminates this conflict of interest by putting a professional on your side of the table. Because their fee is a percentage of your settlement, they are financially motivated to find every dollar you are owed.

When Each Type of Adjuster Gets Involved

Understanding the timeline of adjuster involvement helps you know what to expect and when to consider hiring a public adjuster.

1

You File a Claim

When you report property damage to your insurance company, they open a claim and assign one of their adjusters — either a staff adjuster or an independent adjuster. You have no say in which adjuster is assigned. This happens automatically.

2

The Insurance Company's Adjuster Inspects

The assigned adjuster visits your property, takes photos, measurements, and notes. They prepare an estimate of damage based on the insurance company's guidelines and software. This estimate becomes the basis for the insurer's initial settlement offer.

3

You Receive an Offer (or Denial)

The insurance company presents a settlement offer based on their adjuster's report. This is often where homeowners realize the offer does not fully cover their damages — or worse, the claim is denied entirely. Many homeowners accept the first offer without realizing they have options.

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You Decide to Hire a Public Adjuster (Optional)

At any point during the process — before filing, after the insurance adjuster's inspection, or even after receiving an offer — you can hire a public adjuster. They will conduct their own inspection, prepare an independent estimate, and negotiate with the insurance company on your behalf. Earlier is generally better, but it is never too late.

Pro tip: You do not have to wait for a problem to hire a public adjuster. Many homeowners hire a public adjuster immediately after a loss — before the insurance company's adjuster even visits — to ensure thorough documentation from the start and to have professional representation from day one.

Why the Difference Matters for Your Claim

The type of adjuster handling your claim directly impacts how much money you receive. The insurance company's adjuster is trained to evaluate claims from the insurer's perspective. A public adjuster is trained to evaluate claims from your perspective. These two perspectives can produce dramatically different results.

Real-World Impact: How Adjuster Type Affects Settlements

Without a Public Adjuster

✗ Insurance adjuster documents visible, obvious damage
✗ Estimate uses insurer's preferred (often lower) pricing
✗ Hidden damage behind walls, under flooring may be missed
✗ Additional coverages (ALE, code upgrade) often not mentioned
✗ Homeowner negotiates alone against claims professionals

With a Public Adjuster

✓ Thorough inspection uncovers hidden and secondary damage
✓ Estimate uses current local contractor market rates
✓ Specialists (roofers, plumbers, mold experts) brought in as needed
✓ All applicable coverages identified and claimed
✓ Professional-to-professional negotiation with insurer

Research from the Office of Program Policy Analysis and Government Accountability (OPPAGA) in Florida found that claims handled by public adjusters resulted in significantly higher settlements compared to claims handled without one. While the exact figures vary by claim type, the pattern is consistent: professional representation leads to better outcomes for policyholders.

For a detailed breakdown of public adjuster costs and return on investment, see our guide: How Much Does a Public Adjuster Cost?

Frequently Asked Questions

What is the difference between a public adjuster and an insurance adjuster?

A public adjuster works exclusively for the policyholder and is paid by the policyholder on a contingency fee basis. An insurance adjuster (staff adjuster) works for the insurance company and is paid a salary by the insurer. Their loyalties and incentives are fundamentally different — a public adjuster's goal is to maximize your settlement, while an insurance adjuster's goal is to settle the claim efficiently for their employer.

Can I hire a public adjuster if my insurance company already sent an adjuster?

Yes. You have the legal right to hire a public adjuster at any point during the claims process — even after the insurance company's adjuster has already inspected your property and made an initial offer. Many homeowners hire a public adjuster specifically because they disagree with the insurance company's assessment.

Do independent adjusters work for me or the insurance company?

Independent adjusters work for the insurance company, not for you. Despite the word 'independent,' they are contracted by insurers to handle claims on the insurer's behalf. They are paid by the insurance company and represent the insurance company's interests, just like a staff adjuster.

Is it worth hiring a public adjuster instead of handling the claim myself?

For significant claims, the answer is usually yes. Studies show that public adjuster-managed claims settle for substantially more than self-managed claims — often enough to more than offset the public adjuster's contingency fee. For small, straightforward claims under a few thousand dollars, you may be able to handle the process yourself.

How do I know if the insurance company's adjuster gave me a fair estimate?

Warning signs of an unfair estimate include: the estimate is significantly lower than contractor repair quotes, the adjuster spent very little time inspecting the property, certain damage was excluded without clear explanation, or depreciation was applied excessively. A public adjuster can provide an independent assessment of whether the insurance company's estimate is fair.

Can a public adjuster help after I already accepted a settlement?

In many cases, yes. If you discover additional damage that was not included in the original claim, a public adjuster can file a supplemental claim on your behalf. However, once you sign a final release or settlement agreement, your options may be limited. Consult with a public adjuster as soon as possible if you believe your settlement was inadequate.

Are public adjusters and insurance adjusters required to have the same licenses?

No. Public adjusters and insurance company adjusters have different licensing requirements. Public adjusters must obtain a specific public adjuster license from the state department of insurance, which requires exams, continuing education, and surety bonds. Insurance company staff adjusters may have different or less stringent licensing requirements depending on the state.

Public Adjuster vs Insurance Adjuster: What You Need to Know