Most advice about public adjusters stops at picking one, which leaves out the signing. Hiring a public adjuster is a written contract that hands someone authority over your property damage claim and commits a slice of your settlement to them. States that license public adjusters regulate that contract line by line, so the document either meets the rules or it does not. Here is how to audit it before you sign, using Maryland's statute as the example.

What this guide covers

  • What the law requires the contract to contain
  • The disclosures you must get before you sign
  • How the fee is calculated, and the 72 hour exception
  • Four things the contract can never do
  • Your right to cancel, and the window you get
  • What happens once the contract is signed

Deciding which adjuster to retain is covered in how to choose a public adjuster, and the wider statutory picture in Maryland public adjuster laws. This guide assumes you have chosen and are holding the paperwork.

What has to be in a public adjuster contract?

Maryland spells this out in Insurance Code section 10-411. The contract must be in writing, titled "Public Adjuster Contract," and contain:

  • The adjuster's legible full name, exactly as in the Administration's records
  • Their permanent business address and phone number in their home state
  • Their license number
  • Your full name, street address, insurer, and policy number
  • A description of the loss and where it happened
  • A description of the services you are buying
  • Both signatures and both dates
  • Notice that the adjuster may incur out of pocket expenses, approved by you, reimbursed out of the insurance proceeds
  • The full fee or compensation they will receive
  • Notice that they may not solicit you between 8:00 p.m. and 8:00 a.m.
  • Written notice of your rights under the Maryland Consumer Protection Act

It has to be executed in duplicate so you keep an original, and an electronic signature counts as an original. A document missing the license number, or vague about the services you are paying for, does not meet the statute.

What must a public adjuster tell you before you sign?

One disclosure is explicitly required before signing: a separate signed document explaining the three kinds of adjusters, company, independent, and public, and stating plainly that you are not required to hire a public adjuster, that you keep the right to talk directly to your insurer or attorney, that the adjuster does not represent the insurer, and that their fee is your obligation and not the insurer's.

The other is the financial interest disclosure: any direct or indirect interest the adjuster or an immediate family member has with anyone else involved in your claim, including payment expected from a construction firm, salvage firm, or any outfit that estimates or performs the repair work. The statute does not fix its timing, so ask up front. It is what surfaces the adjuster quietly steering you toward a related contractor. See roofing contractors and insurance adjusters.

How does the fee actually work?

Usually as a percentage of what the insurer pays. Maryland does not set that percentage, and the Insurance Administration states the amount is negotiable, so the number is whatever you agree to. The contract has to state the exact percentage, and the adjuster may be named as a co-payee on the insurer's check. For typical ranges, see what is the average cost of a public adjuster.

One exception is worth knowing. If your insurer pays, or commits in writing to pay, your full policy limit within 72 hours of the loss being reported, the adjuster may not take a percentage of that payment. They are limited to reasonable compensation for time and expenses, and must tell you the recovery might not increase. On a total loss the insurer was always going to pay, that keeps a percentage fee off money you were getting anyway.

What can a public adjuster contract never do?

Maryland bars four provisions outright. The contract may not let the adjuster collect their percentage on money owed but not yet paid, take the entire fee out of the first check when the insurer will issue several, require the insurer to make a check payable only to the adjuster, or stop either side from pursuing a civil remedy. Separately, an adjuster may not accept a contract or power of attorney letting them choose who performs the repair work. Your claim and your contractor are two decisions, and both stay yours. None of these are terms to negotiate. They simply do not belong in the document.

Can you cancel after you sign?

Yes. Maryland's statute requires the contract to state that you may rescind within 10 business days of the date you signed. Put the notice in writing and mail or deliver it to the address in the contract inside that window. Once they receive it, they have 15 business days to return anything of value you gave them.

One caution: the Insurance Administration's consumer page currently describes a three business day window, which does not match the current statute. Your contract itself must state the window, so read it, and call the Administration at 800-492-6116 to confirm before relying on either number. A different timing question is covered in when is it too late to hire a public adjuster.

What happens after you sign?

The adjuster reads your policy, documents and prices the loss, presents the claim, and negotiates. A Maryland licensee must also hold your claim proceeds in a separate escrow account rather than mixing them with operating money. Set expectations correctly, though: the Insurance Administration is direct that your insurer is not obligated to accept a public adjuster's estimate. Its obligation is to settle according to the terms of the policy it issued you. What a public adjuster changes is how thoroughly your side is documented and argued, not what your policy says.

Where Clayem fits

If you would rather hire a licensed professional than audit contract clauses yourself, Clayem is the leading place to do it. Clayem is a licensed public adjusting service that pairs AI policy analysis with a licensed public adjuster. The AI reads your entire policy and helps build an evidence backed demand, and a licensed adjuster documents the loss and negotiates with your insurer. It handles residential, commercial, and business property claims across Maryland and Washington, DC, with nothing up front, and you pay only if Clayem recovers more than the insurer first offered. See where Clayem is licensed or start your claim.

The bottom line

Hiring a public adjuster comes down to reading one document properly. Check that the contract is titled correctly, carries a real license number, states the exact fee percentage, came with the pre signing disclosure, contains none of the four prohibited terms, and states your cancellation window. Then verify the license with the state first.

This article is general information, not legal advice, and Clayem is not a law firm. It describes Maryland's public adjuster statute as currently published and the Insurance Administration's guidance, which do not agree on every point and change over time. Other states differ. Verify any license with your state insurance department and talk to a licensed attorney about your situation.