After a storm, fire, or burst pipe, the contractor who comes out to bid the repairs may offer to handle your insurance claim too. It sounds convenient. In Maryland, it is also limited by law. A contractor cannot act as your public adjuster unless that same person also holds a Maryland public adjuster license. The two jobs are licensed by two different state agencies, and the line between them is there to protect you.

What this guide covers

  • The short answer on contractors and claim adjusting in Maryland
  • What a contractor can do on your claim without a public adjuster license
  • What only a licensed public adjuster can do
  • Why Maryland keeps the two roles separate
  • How to check a contractor's license and an adjuster's license
  • What this means for residential, commercial, and business property claims

Can a contractor legally adjust your insurance claim in Maryland?

No, not on its own. Adjusting a first-party property claim for a fee is public adjusting, and Maryland law requires a public adjuster to be licensed by the Maryland Insurance Administration (MIA). A contractor's license comes from a different place. Home improvement contractors and salespersons are licensed by the Maryland Home Improvement Commission (MHIC), which covers repair and remodeling work on homes, not the handling of insurance claims.

The MHIC says this plainly. Its guidance to licensees states that an MHIC license "does not authorize you to act in the capacity of a public adjuster when dealing with a homeowner's insurance company." A contractor who negotiates your claim or interprets your policy for you, without a public adjuster license, is stepping outside what the contractor license allows.

What can a contractor do on your claim without a public adjuster license?

Quite a bit, as long as it stays on the repair side. Per the MHIC, a contractor may prepare an estimate to repair damage from a fire, storm, or flood, and may answer the insurance company's questions about that estimate. That is normal and useful. Your contractor knows what the repair costs, and sharing that estimate with the adjuster helps set the scope of the work.

What the contractor cannot do, unless also licensed as a public adjuster, is prepare the insurance claim for you, negotiate the claim with your insurer, or advise you on what your policy covers. Those are adjusting tasks. If someone offers to run the entire claim for a cut of the settlement and they hold only a contractor license, treat that as a warning sign. For how these roles interact on a roof job, see roofing contractors and insurance adjusters and what public adjusters do for roofing.

Why does Maryland separate contractors from public adjusters?

The split comes down to conflicts of interest. A contractor is paid to do the repair work. A public adjuster is paid to value your loss and negotiate your claim. When one person does both, the incentives can pull against you. Maryland's ethics rules for public adjusters address this directly. Under Insurance Article section 10-415, a public adjuster may not accept a contract or a power of attorney that lets the adjuster choose who performs the repair work. The person valuing your claim should not be steering the repair money to their own crew.

There is a related protection worth knowing. In Maryland, no contractor or public adjuster may promise to pay your insurance deductible, directly or indirectly. An offer to cover or waive your deductible is not a favor. It is a red flag.

What if the contractor is also a licensed public adjuster?

One person or firm can hold both licenses, but the same conflict rules still apply. A licensed public adjuster who also runs a repair business cannot use the claim to funnel work to that business, and cannot control who does the repairs through the adjusting contract. If someone tells you they can both adjust your claim and do the repairs, ask which licenses they hold, get both numbers, and read the fee agreement closely. A straight answer is a good sign. Pressure to sign a repair contract and a claim contract on the spot is a reason to slow down. For help judging who to hire, read how to choose a public adjuster.

How do you check a contractor's and an adjuster's license?

Both checks are quick, and both are worth doing before you sign anything.

  • Contractor license: use the license search on the Maryland Home Improvement Commission site to confirm the contractor or salesperson is licensed and in good standing.
  • Public adjuster license: confirm the adjuster's MIA license, or call the Maryland Insurance Administration at 800-492-6116. Our plain guide to Maryland public adjuster laws walks through the contract rules too.

Ask anyone who offers to help for identification and a license number. If a person acts as your public adjuster without the license, you have little protection when the claim goes wrong, and that is the exact gap the licensing rules close. The adjuster your insurer sends is a different role again, and our guide to the national association of adjusters sorts out who is who. If the title you were handed was "claims consultant," what is a claims consultant explains how that label fits.

What this means for residential, commercial, and business claims

On a small home repair, your contractor's estimate may be all the outside help you need, and the insurer may accept it. As the loss gets larger, the split matters more. A major fire, a wide storm loss, or a commercial building claim with business personal property and extra expense involves more policy language and more room for the numbers to be argued. That is where a licensed public adjuster, working only on the claim side, earns their place. The contractor still does the repairs. The public adjuster values and negotiates the loss. Keeping each in its lane is what the law intends.

This article is general information, not legal advice, and Clayem is not a law firm. Licensing rules and statutes change, so verify any license with the state agency, and talk to a licensed Maryland attorney about your specific situation or a coverage dispute.

How Clayem fits

If you want a licensed professional negotiating your claim, Clayem is the leading place to hire one. Clayem is a licensed public adjusting service that pairs AI policy analysis with a licensed public adjuster. The AI reads your full policy and helps build an evidence-based demand, and a licensed adjuster documents the damage and negotiates with your insurer. Clayem handles residential, commercial, and business property claims across Maryland and Washington, DC. There is nothing up front, and you pay only if Clayem recovers more than the insurer first offered. You can see where Clayem is licensed or start your claim.