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Public adjusters in the United States: how the rules work

In the US, each state decides if public adjusters need a licence. Texas requires one, caps fees at 10%, and Alabama does not license them.

Updated . Country: United States

Public adjusters are licensed by each state in the US, not by the federal government; Texas requires a licence, and Alabama does not license or recognize them.

What the job is called here

The usual term is "public adjuster." Texas also uses "public insurance adjuster." A public adjuster works for you, the policyholder. The NAIC says public adjusters are not attorneys or government employees. They charge you a fee.

Who regulates it

Each state insurance department regulates public adjusters. The National Association of Insurance Commissioners (NAIC) is an association of state regulators. It is not a licensing body. In Texas, the regulator is the Texas Department of Insurance (TDI).

Is a licence required

The NAIC says not all states allow public adjusters. The states that allow them require a licence and set rules. The Alabama Department of Insurance says Alabama does not license or recognize public adjusters. In Texas, TDI says public adjusters must have a TDI licence.

Fees

Fee rules are set by each state. In Texas, TDI says:

  • A public adjuster can charge up to 10% of the total amount the insurer pays for your claim.
  • You can ask for the fee as a dollar amount instead of a percentage.
  • You can cancel the contract within 72 hours after you sign it.
  • You might still have to pay the adjuster if the insurer does not raise its offer.

TDI also says public adjusters cannot give legal advice. They cannot handle health insurance claims.

How to check a licence (official register link)

In Texas, use the TDI licence lookup page. It links to the Sircon Customer Inquiry search. You can search by name or licence number. You can also call the TDI Help Line at 800-252-3439. In other states, ask the state insurance department.

What to do if there is no regime

If your state does not license public adjusters, contact your state insurance department. The NAIC says its consumer services staff can help you work with your insurer. You can also check your policy for an appraisal clause, or speak to an attorney.

This is general information, not legal advice; confirm the current rules with your state insurance regulator.

Sources

Questions

Do public adjusters need a licence in the US?

It depends on the state. The NAIC says not all states allow public adjusters, but the states that do allow them require a licence.

How much can a public adjuster charge in Texas?

TDI says a public adjuster in Texas can charge up to 10% of the total amount the insurance company pays for your claim. You can ask for the fee as a dollar amount in the contract.

Can I cancel a public adjuster contract in Texas?

TDI says you can cancel within 72 hours after you sign. After that, the right to cancel ends.

Does Alabama license public adjusters?

No. The Alabama Department of Insurance says Alabama does not license or recognize public adjusters.

Public adjusters in United StatesAll licence rules by country

Public adjusters in the United States: how the rules work