# How Public Adjusters Charge Understand public adjuster fee structures including percentage, flat-fee, and hourly rates, plus the state-regulated caps that limit what they can charge. Updated 2026-10-10. Also on the [web page](https://publicadjusters.fyi/guides/how-public-adjusters-charge). # How Public Adjusters Charge Public adjuster fees are regulated at the state level and vary by jurisdiction, claim type, and the stage at which the adjuster is hired. Understanding how these fees work helps you decide whether hiring one makes financial sense. ## Contingency fee (percentage of settlement) The most common arrangement is a contingency fee: the public adjuster receives a percentage of the total claim settlement, including any additional amounts they secure beyond the insurer's initial offer. This aligns their incentive with yours, since they only get paid when you do. Typical percentages range from 5% to 20%, with most residential claims falling in the 10% to 15% range. The percentage often slides based on the claim size — larger claims may command a lower rate because the absolute dollar value is higher, while small or complex claims may be charged at a higher rate because the adjuster's effort is similar regardless of payout. State insurance departments set maximum allowable percentages, and those caps differ significantly. Some states cap residential claims at 10%, while others allow up to 20% for certain loss types. Check your state's maximum before signing any contract. ## Flat fees A minority of public adjusters offer flat-fee arrangements for clearly scoped work. This is most common when the adjuster's role is limited — for example, reviewing a single policy section, preparing an inventory, or negotiating a specific line item. Flat fees give you cost certainty but may not cover additional work if the claim becomes more complex. Flat fees are less common because they shift risk onto the adjuster. If a claim takes far more hours than expected, the adjuster absorbs the overrun. For this reason flat fees tend to be offered only on straightforward, low-risk claims. ## Hourly rates Hourly billing is rare in residential public adjusting and more common for commercial claims or consulting-only engagements where the adjuster is not managing the full claim lifecycle. If an adjuster quotes an hourly rate, ask for a written estimate of the expected hours and a cap above which they will not exceed without your approval. ## Fee caps by state Many states set a statutory cap on public adjuster fees. These caps vary widely: - Some states cap fees at 10% for residential claims and 15% for commercial claims - Others set a flat 20% ceiling regardless of claim type - A few states use a sliding scale that decreases as the settlement amount rises Because fee caps are set by state law and change periodically, always verify with your state department of insurance. The department can confirm the current maximum allowable fee and whether the adjuster's proposed rate is within legal bounds. ## What the fee covers A standard contingency fee should cover the adjuster's time for inspecting the property, reviewing the policy, preparing the claim, itemising the inventory, negotiating with the insurer, and attending any appraisals or meetings. It may not cover litigation costs, engineering reports, or expert witness fees if the claim ends up in court. Get a written agreement that spells out what is included and what is extra. ## What to watch for - Avoid adjusters who demand a large upfront payment before any work begins. Some states prohibit advance fees entirely. - Confirm that the fee applies only to amounts actually received, not to amounts claimed or offered. - Read the cancellation terms. If you fire the adjuster, some contracts still entitle them to a percentage of the final settlement. - Compare quotes. Public adjuster fees are negotiable within the legal cap, and shopping around can save a meaningful amount. ## Resources Your state insurance department publishes the current fee regulations and maintains a public database of licensed adjusters. That is the most reliable place to verify both the cap and the adjuster's credentials before signing a contract. ## Questions ### What percentage do public adjusters charge? Public adjusters typically charge between 5% and 20% of the total claim settlement. The exact percentage depends on state law, claim size, and complexity, with most states capping the maximum allowed fee. ### Can a public adjuster charge an upfront fee? Some public adjusters charge a flat fee or retainer for initial services, but most work on a contingency basis, meaning they only get paid when you settle. Check your state's regulations, as some restrict or prohibit advance fees. ### Are public adjuster fees negotiable? Yes. Fees are negotiable within the limits set by your state. Larger claims often command lower percentages because the total dollar figure is higher, and you can shop around for better terms.