What are the disadvantages of hiring a public adjuster?


Editorial team Published on

Hiring a public adjuster comes with several major financial and procedural pitfalls that can delay your payout or reduce your final recovery.

High Fees and Reduced Payouts

  • Large commission cuts: Public adjusters typically charge 5% to 20% of your total insurance settlement, which can amount to thousands of dollars taken straight out of your repair funds.
  • Fees on money you would get anyway: You may owe a percentage of the entire payout, even if the insurance company already offered that money before you hired the adjuster.

Process Delays and Complications

  • Slower settlements: Claims involving public adjusters often take significantly longer to resolve compared to standard claims because they frequently involve formal disputes, re-inspections, or alternative dispute resolution.
  • Overworked adjusters: After major disasters, some adjusters take on more clients than they can handle, leading to poor communication and neglected paperwork.

Risk of Fraud and Scams

  • Inflated estimates: Some adjusters push for exaggerated repair costs or questionable contractor work to maximize their commission, which can trigger fraud suspicions or stall your claim with the insurer.
  • Post-disaster scammers: Unlicensed or disreputable operators often swarm disaster zones offering "free inspections" or schemes to waive deductibles, leaving homeowners legally vulnerable. Read more about evaluating credentials through United Policyholders.