What Is the Average Cost of a Public Adjuster?

If you're weighing whether to bring in help on a claim, the first question is usually about the average cost of a public adjuster. The short answer: most public adjusters don't charge anything upfront. They work on contingency, taking a percentage of the money they recover for you, and that percentage is commonly in the 10 to 20 percent range, varying by state, claim size, and complexity, and capped by law in many states. As the NAIC notes, a public adjuster's fee is paid by you, the policyholder, not by your insurer.

How public adjusters charge

There are three common fee structures:

• Contingency (most common). A percentage of the recovery, taken from what they get you, so there's no upfront cost, and the adjuster only earns if you do.
• Flat fee. A fixed amount agreed in advance, sometimes used for straightforward or very large claims.
• Hourly. Less common, occasionally used on complex commercial claims.

What the percentage depends on

"Average" is slippery, because the number moves with several factors:

• State law. Many states regulate and cap public-adjuster fees. Some cap the percentage outright, and several set a lower cap for claims tied to a declared disaster or catastrophe, so the fee on a hurricane claim may be limited by statute.
• Claim size. Smaller claims sometimes carry a higher percentage (the work is similar regardless of payout); larger claims often negotiate a lower one.
• Complexity and stage. A denied or disputed claim, or one the insurer has already partly paid, can change both the rate and the fee basis.
• Fee basis. Read this carefully: some adjusters charge on the total settlement; others charge only on the additional amount recovered above the insurer's original offer. That's a major difference in what you actually pay.

A simple example

Say your insurer offers $20,000 and a public adjuster gets the claim raised to $50,000. What you pay depends entirely on the fee basis:

• At 10% of the total $50,000, the fee is $5,000.
• At 10% of only the additional $30,000 recovered, the fee is $3,000.

Either way you net far more than the original offer, but always confirm in writing which basis applies. A reputable adjuster will walk you through this math before you sign; if one won't explain exactly what you'll pay and on what basis, treat that as a red flag. (This is an illustration, not a quote or a predicted result.)

What to check in the agreement

Before you sign a public adjuster's contract, confirm:

• The percentage, and whether it applies to the total settlement or only the additional recovery.
• Any state cap that applies, especially for catastrophe claims.
• Minimum fees, cancellation terms, and a clear written scope of work.
• That the adjuster is licensed in your state. You can verify this through your state insurance department.

Is a public adjuster worth the cost?

On a disputed or underpaid claim, a higher settlement minus the fee often still nets you more than the insurer's first offer, and you hand off the paperwork and negotiation. On a small claim that's already been paid fairly, the fee may not be worth it. As with any claim, past results don't guarantee a specific outcome. For a fuller breakdown, read Is using a public adjuster a good idea?

Are public adjuster fees negotiable?

Often, yes, within the limits your state allows. On a larger claim, many public adjusters will agree to a lower percentage, and the fee basis (the total settlement vs. only the additional recovery) is usually open to discussion. Get whatever you agree to in writing before any work starts, and be cautious of contracts with steep minimum fees, long cancellation windows, or a percentage that ignores your state's cap.

What you're actually paying for

A public adjuster's fee buys more than negotiation. It typically covers a full policy review, a professional scope and valuation of the loss, the documentation package, and all correspondence and deadlines with the insurer, work that is time-consuming and unfamiliar to most policyholders. On a denied or underpaid claim, that expertise is often the difference between the insurer's first number and a settlement that reflects the real cost of the loss.

A public adjuster is not "assignment of benefits"

Hiring a public adjuster is not the same as signing an assignment of benefits (AOB) over to a contractor, which hands your claim rights to a third party. A public adjuster represents you, is paid a regulated fee, and you keep control of the claim. If anyone asks you to sign over your benefits, read it carefully and understand what you'd be giving up before you do.

How Clayem charges

Clayem works on contingency with no upfront cost, and our fee applies only to the additional amount we recover above your insurer's original offer, within each state's legal cap. If we don't recover more, you pay nothing. See the fees where we're licensed or start your claim.