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Public adjuster, contractor estimate, or insurance adjuster: who does what on a claim

On a property claim, up to three people produce an estimate, and they are paid by three different parties. Confusing their roles is the most common reason homeowners end up with the wrong help or pay for help they didn't need. Here's who each one is, what they can and can't do, and when each makes sense.

The three roles

Insurance adjusterContractor (and estimating services)Public adjuster
Works forThe carrier (staff adjuster) or is hired by the carrier (independent adjuster)You, for the repair workYou, for the claim
WritesThe carrier's estimate: the scope the carrier has approvedAn estimate of the work the job needs; supplements for missed itemsA claim-wide valuation, often including contents and living expenses; negotiates it with the carrier
Paid byThe carrierYou or the carrier, for the repairYou, a percentage of the settlement (state-capped, commonly 5 to 15 percent)
Can negotiate your claim?Represents the carrier's sideNo, in most states. Can explain and document their own scopeYes; licensed to represent the policyholder
Licensed asAdjuster (state-specific)ContractorPublic adjuster, with a bond and continuing education

The insurance adjuster

The adjuster inspects, applies the policy, and writes the estimate that becomes the carrier's offer. Staff adjusters are employees; independent adjusters are contractors the carrier hires, often during storm surges; desk adjusters work from photos and reports. The estimate is usually written in Xactimate and is the document everything else is compared against. The adjuster is not your adversary and not your representative; they work for the carrier.

The contractor's estimate

The contractor's estimate says what the repair needs. Compared line by line with the adjuster's estimate, it shows what's missing or under-counted, and those gaps go back to the carrier as a documented supplement. A contractor may document and submit the scope of their own work. In most states a contractor may not negotiate the claim on your behalf, advise you on coverage, or charge you a fee for handling the claim; doing so is unlicensed public adjusting, and courts have held contractors to that line.

Estimating services (like this one) write the contractor's estimate in Xactimate for a flat fee. They are a documentation service for the contractor's scope, not a representative for either side. How it works.

The public adjuster

A public adjuster (PA) is licensed by the state to represent policyholders in a claim. The PA inspects, values the whole loss (structure, contents, additional living expenses), prepares the claim, and negotiates with the carrier. The fee is a percentage of what the carrier pays, capped by state law in many states, and is the PA's only compensation. PAs cannot give legal advice and cannot be paid by contractors for referrals in most states.

Which one your situation calls for

SituationUsual path
The adjuster's estimate is close; a few items missingContractor documents a supplement. How
Large or complex loss (fire, major water, whole-house)A public adjuster from the start; the valuation work is substantial
Carrier and contractor are far apart and the supplement didn't move itPublic adjuster, or the policy's appraisal clause
Claim denied or coverage disputedPublic adjuster for a valuation dispute; an attorney for a coverage or bad-faith dispute. Denied claim steps
You don't have time to run the claimPublic adjuster
Contents and living-expense losses are largePublic adjuster; contractors don't estimate those

How the three documents fit together on one claim

In a typical disputed claim the sequence is: the insurance adjuster's estimate sets the carrier's position; the contractor's estimate shows the gap in the repair scope and the contractor documents it as a supplement; if the gap persists or the loss is larger than the structure alone, a public adjuster takes over and presents the whole claim, using the contractor's estimate as one exhibit among several. The documents don't compete; they stack. What goes wrong is role confusion: a contractor arguing valuation with the carrier (unlicensed), a public adjuster writing construction scope they haven't measured (weak exhibit), or a homeowner with no independent estimate at all, which leaves the adjuster's number unchallenged.

What this site does

restoration.claims writes contractor estimates and supplements. It is not a public adjuster and doesn't represent anyone in a claim. Homeowners whose situation calls for a PA are told so, and the homeowner claim companion keeps the documents and dates organized either way.

Homeowner claim companion

Contractors: order an estimate

Questions people ask

How much does a public adjuster cost?

A percentage of the claim payment, typically 5 to 15 percent, with caps in many states (and lower caps after declared disasters in some). No recovery, no fee, under most contracts.

Does hiring a public adjuster make the carrier hostile?

Carriers deal with PAs daily. The claim moves to a more formal footing, which is often the point. It doesn't change what the policy owes.

Can a contractor recommend a public adjuster?

They can point you to licensed PAs. In most states a PA may not pay a contractor for the referral, and a contractor may not be paid for it.

Is an estimating service a public adjuster?

No. An estimating service writes the contractor's scope in the carrier's software for a flat fee. It doesn't represent the policyholder or negotiate with the carrier.

How do I check a public adjuster's license?

Every state insurance department has a license lookup. Search the PA's name or license number; the record shows status and any disciplinary action.