What is the difference between a public adjuster and an independent adjuster?
Short answer. An independent adjuster is hired by the insurance company, often through an adjusting firm during busy storm seasons, and represents the insurer just as a staff adjuster does. A public adjuster is hired by the homeowner under a written contract, works only for the policyholder, and is paid a fee out of the settlement.
Three kinds of adjusters
- Staff adjuster: a salaried employee of the insurance company.
- Independent adjuster: works for an adjusting firm that insurers hire, especially after big hailstorms when claim volume spikes. Despite the name, an independent adjuster represents the insurer, not you.
- Public adjuster: hired by the policyholder and paid a fee, usually a percentage of the claim.
Key differences
- Who they answer to: independent adjusters follow the insurer's guidelines, and their reports go to the insurer's claim staff for approval. Public adjusters answer to you.
- Who pays them: the insurer pays independent adjusters. You pay a public adjuster out of your settlement.
- Authority: an independent adjuster often cannot approve payment alone; a desk or staff adjuster signs off. A public adjuster has no authority over payment but negotiates for it.
- Licensing: in Georgia, independent and public adjusters both need a license from the Office of Insurance and Safety Fire Commissioner.
Why independent confuses people
Homeowners sometimes assume an independent adjuster is a neutral party. The word means independent of one insurance company's payroll, not independent of the insurer's interests. Treat the estimate as the insurer's position and check it line by line.
How to tell who you are talking to
Ask for a business card and simply ask who hired them and who pays them, then note the firm name in your claim log. If you think you need someone on your side, read public adjuster vs roofer in Georgia, and see what roof adjusters look for to prepare for whoever shows up.