Texas Insurance Education

Public Adjusters

A public adjuster is a licensed professional who represents policyholders — not insurance companies — in the claims process. Unlike staff or independent adjusters employed by your insurer, a public adjuster works exclusively for you. Understanding when to hire one and what the rules are in Texas can significantly affect your claims outcome.

01

What Public Adjusters Do

Public adjusters document and assess the full extent of your damage, prepare a detailed claim with supporting estimates and documentation, negotiate with your insurer on your behalf, and advocate for the maximum settlement allowed under your policy. They are most valuable on large or complex claims where the scope of damage is difficult to quantify.

02

How Public Adjusters Are Paid

Public adjusters work on contingency — typically 10-15% of the total settlement, though percentages vary and Texas law caps fees. The fee comes out of your settlement. On a $100,000 settlement with a 10% fee, your net would be $90,000 — which may still be significantly more than what your insurer initially offered.

03

Licensing and Regulation

Public adjusters must be licensed in Texas. Verify the license through the Texas insurance department. Check for disciplinary history, ask for references on similar claims, and read the contract carefully — especially the fee structure, scope of representation, and cancellation terms. Be cautious of adjusters who solicit immediately after a disaster.

04

When a Public Adjuster Makes Sense

Consider a public adjuster when: your claim is large (typically $50,000+); the insurer's estimate seems significantly lower than contractor quotes; your claim has been denied and you believe coverage exists; you don't have time to manage a complex claim; or the claim involves technical issues like moisture mapping, smoke penetration, or structural damage.

Texas-Specific Facts

What Texas Policyholders Need to Know

  • Texas public adjusters licensed by TDI under Tex. Ins. Code §4102
  • No statutory fee cap in Texas for public adjusters on non-catastrophe claims
  • Catastrophe claims: fee limited to 10% of settlement during state of disaster declaration
  • Public adjusters cannot solicit within 72 hours of a loss
  • Contract must be in writing and specify the fee arrangement
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Regulatory resource: Texas Department of Insurancehttps://www.tdi.texas.gov. The Insurance Professor provides education only — not legal or insurance advice.

Public Adjusters — Other States