When you file an insurance claim, you’ll come across a claims adjuster who will determine the scope and value of your loss. But how do you know if they will give you a fair settlement?
Knowing the type of adjuster you’re working with is a highly practical step in your recovery. Since you have the right to choose your own representation, finding an adjuster who will advocate for your interests helps you pursue a fair settlement.
Key Takeaways
- There are three types of claims adjusters: staff adjusters, independent adjusters, and public adjusters.
- An insurance adjuster is the umbrella term for a staff or independent adjuster who works for the insurance company. A public adjuster works for you.
- Insurance adjusters and public adjusters differ in who they represent in a claim, their duties and objectives, and how they are paid.
- You may hire a public adjuster at any stage of your claim, and especially during complex cases, low settlements, or claim denials.
- Allied Public Adjusters uses a multi-disciplinary team model and specializes in complex cases and California insurance.
3 Types of Claims Adjusters and Their Roles
The three types of claims adjusters are staff adjusters, independent adjusters, and public adjusters.[3] All evaluate damage and determine an appropriate settlement amount in an insurance claim process. Their main difference lies in who they represent.
Staff Adjuster: Represent the insurance company
A staff adjuster is a direct employee of the insurance company.[1][3] Their primary responsibility is to investigate, evaluate, and settle claims on behalf of their employer.
Because they are part of the internal team, their performance metrics are tied to how efficiently and cost-effectively they resolve claims for the insurance carrier.
Independent Adjuster: Represent the insurance company
An independent adjuster is contracted by an insurance carrier to handle claims, often during times of high claim volume or when the carrier lacks sufficient internal staff. While they’re not permanent employees, their client remains the insurance company, and they’re tasked with the same goal of investigating the claim based on the insurer’s standards. The term “independent” only means that they are contractors, not employees.[1][3]
Public Adjuster: Represent the policyholder
A public adjuster is an independent professional licensed by the state to represent the policyholder.[2] They are the only type of adjuster who works exclusively for you rather than the insurance company. Their role is to interpret your insurance policy, document your damages, and help you negotiate a settlement that reflects the coverage you are entitled to.
Public Adjuster vs Insurance Adjuster: Key Differences That Affect How They Manage Your Claim
Here’s a full comparison of a public adjuster vs insurance adjuster (either staff or independent) to help you understand how each handles your claim.
| Feature | Public Adjuster | Staff Adjuster | Independent Adjuster |
|---|---|---|---|
| Who they work for | Policyholder | Insurance company | Insurance company |
| Employment status | Licensed contractor | Permanent employee | Licensed contractor |
| Main goal | Works for you | Works for the insurance company | Works for the insurance company |
| Policy interpretation | Focus on full applicable coverage under the policy | Focus on insurance company guidelines | Focus on insurance company guidelines |
| Damage assessment method | Independent tools, contractor inputs | Insurer’s proprietary software (Xactimate) | Same as a staff adjuster |
| Payment structure | Contingency fee | Salary | Contract fee |
| Incentive structure | Higher settlement, higher fee (% of settlement) | Insurance company performance metrics | Contract-based incentives |
| Licensing (California) | Licensed by the California Department of Insurance (CDI) | Not required | Licensed by CDI |
1. They represent different parties
An insurance adjuster is hired by the insurance company and can either be a permanent employee (a staff adjuster) or a contracted employee (an independent adjuster). Meanwhile, a public adjuster is hired by the policyholder. Who they represent affects how an adjuster handles a claim, from what they prioritize during damage inspections to their objectives.
2. They have different duties and objectives
An insurance adjuster is responsible for evaluating the insurance company’s liability based on the carrier’s guidelines. Meanwhile, a public adjuster is responsible for building a comprehensive case for your losses.
What an insurance adjuster does
- Interpret policy limitations based on the insurance carrier’s guidelines
- Generate repair estimates based on company-approved software
- Calculate the payout required to settle a claim
- Protect insurance company
What a public adjuster does
- Estimate current market costs for repairs
- Interpret policy language to find all applicable coverage
- Identify overlooked damage
- Negotiate with the insurance adjuster to pursue a fair payout based on the policy
- Represent the policyholder’s interest
3. They use different payment structures
The insurance carrier compensates insurance adjusters, while public adjusters work on a contingency basis, earning a percentage of the final settlement. This difference in incentive structures affects how each handles your claim.
How insurance adjusters are paid
Staff adjusters are typically salaried or hourly employees, and independent adjusters receive a flat fee or per-claim payment from the insurer. Their professional success is often measured by their ability to close files within company-mandated timelines and budgetary constraints.
How public adjusters are paid
Public adjusters generally operate on a contingency basis, meaning they’re paid a pre-agreed percentage of the final settlement. Because their compensation is tied to the outcome, they’re incentivized to document your claim as thoroughly and accurately as possible.
When Should You Hire A Public Adjuster
You can hire a public adjuster to support you at any point in most property claims. Their expertise is most useful in complex cases or when you want to dispute your claim.
Any point of an insurance property claim
You can hire a public adjuster at any point in your claim. Even if you’ve already received an offer or a denial, an experienced team can reopen your claim, document the missing evidence, and advocate for a correction.
During complex cases
Total-loss fires, catastrophic damage from natural disasters, and cases with extended displacement create a technically complex claim. Professional oversight can help secure a fair settlement.
During claim disputes
The insurance adjuster’s first settlement offer may not align with your repair estimates or understanding of the damage. They may even deny your claim if they attribute the damage to a non-covered event. A public adjuster can step in to help you negotiate your claim.
How is Allied Different From Other Public Adjusters
Allied Public Adjusters offers you a full team of experts to navigate the nuances of California insurance regulations and complex cases. This multi-disciplinary approach helps us handle your claim with the depth and accuracy a complex case demands.
Works in teams
Some public adjuster firms rely on a single individual to handle every aspect of your claim. Allied deploys a specialist team, with experts in law and accounting to construction and engineering, to help make sure every detail of your loss is addressed. This team structure allows us to handle claims with a high level of rigor.
Expertise in California insurance
Allied is licensed by the California Department of Insurance. Our 29 years of experience as California public adjusters means we know exactly how to navigate the process under state regulations and typical insurer practices.
Specializes in complex cases
Allied has been working with complex insurance claim cases since 1997. Our clients often receive settlements averaging 1,283%* higher than the insurance company’s initial offer.
Success Story
Memory Lane Coffee received an initial settlement of $11,322. After hiring Allied Public Adjusters, Memory Lane’s final settlement reached $184,349, over 16 times the original amount. The increase happened because Allied’s team identified overlooked damage and coverage that the policyholders didn’t know existed.
The decision to hire a professional depends on the complexity of your loss. When an insurance company denies your claim or offers a settlement that falls short of your repair costs, working with a team of professionals can make a difference.
Schedule a Free Consultation if you’d like our team to review your claim and help you work towards a fair settlement.
FAQs
What is the key difference between a public adjuster vs insurance adjuster?
The key difference is representation. A public adjuster is hired by and works for the policyholder, while an insurance adjuster is hired by and works for the insurance company.
What is a public adjuster?
A public adjuster is a licensed professional who helps policyholders manage, document, and negotiate their property insurance claims. They advocate for the policyholder, helping them receive fair compensation based on their policy coverage.
What is an independent adjuster? Are they truly independent?
An independent adjuster is a contractor hired by an insurance company to handle claims. They’re independent in the sense that they aren’t insurance company employees, but they’re not independent in terms of whose interests they represent. In a claim, they represent the interests of the insurance carrier.
How much does a public adjuster cost in California?
Public adjusters in California typically charge a percentage of the total claim settlement. Fee terms must be set out in a written contract, and public adjuster contracts must be approved by the California Department of Insurance before a license is issued.
Should I hire a public adjuster?
You should consider hiring a public adjuster if you have a complex case, the settlement offer doesn’t cover the full damage, your claim is denied, or if you want to be certain that your claim is being documented as thoroughly as possible.
Can I hire a public adjuster after receiving a settlement offer?
Yes. If you have received an offer that you believe is inadequate, you can hire a public adjuster to review your claim, document the discrepancies, and negotiate for a higher settlement.
What is an insurance claims adjuster?
A claims adjuster is a general term for someone who investigates and manages insurance claims. This role includes staff adjusters, independent adjusters, and public adjusters.
Do public adjusters work on commercial property claims?
Yes. A commercial public adjuster helps businesses navigate complex issues such as business interruption and extensive structural damage.
References
- California Department of Insurance. (n.d.). Insurance adjuster. https://www.insurance.ca.gov/0200-industry/0050-renew-license/0200-requirements/insurance-adjuster.cfm
- California Department of Insurance. (2014). Public insurance adjuster examination objectives. https://www.insurance.ca.gov/0200-industry/0030-seek-pre-lic/upload/ExamObjPJ.pdf
- National Association of Insurance Commissioners. (n.d.). Adjuster licensing (Chapter 18). https://content.naic.org/sites/default/files/inline-files/Chapter%2018%20-%20Adjuster%20Licensing.pdf
*In a review of approximately 534 closed claims from 1997 to 2026, settlements averaged 1,283% above the insurance company’s initial claim payments and/or undisputed value. Based on closed files where the carrier made an initial determination of claim value, individual results varied widely. Files without a documented initial claim value were not included. Results vary by claim and depend on policy terms, damage severity, and the facts of each claim. Past results do not guarantee future outcomes.