Public adjuster contract: what it must say and your rights

A public adjuster contract is the written agreement that sets the adjuster’s fee, the work they will do and how you can cancel. State law decides what the document has to say, and in some states a contract that breaks the rules cannot be enforced against you.

This guide is about the document. For picking the person, see how to choose a public adjuster. The rules below come from the statutes of eight states. Rules differ by state, so check your own before you rely on any of them. The contract check tool lists what to look for where you live.

What does a public adjuster contract have to contain?

Georgia, Iowa, Louisiana, Nebraska and North Carolina each list what a written contract must show. The lists overlap on these items:

• The adjuster’s name, contact details and state license number.
• Your name and address.
• A description of the loss and of the services the adjuster will provide.
• The fee.
• Both signatures and the date each person signed.

Some states add their own requirements:

• Texas. The contract must be on a form approved by the insurance commissioner. It must carry a notice in 12-point bold type that reads “WE REPRESENT THE INSURED ONLY” (Tex. Ins. Code § 4102.103). A state rule also calls for the license number on every page, the date and time of signing, and a statement on the signature page that you do not have to sign the contract to make a claim.
• Florida. The contract must be titled “Public Adjuster Contract” and printed in at least 12-point type. You initial each page you do not sign, and you get an unaltered copy when you sign (Fla. Stat. § 626.8796). Before you sign the contract, the adjuster must give you a separate state disclosure form to sign.
• Georgia. The form must be approved by the Commissioner, and it must state that the adjuster’s license is valid on the day you sign (O.C.G.A. § 33-23-43.2).
• California. The form must be approved by the Insurance Commissioner. A Notice of Cancellation form is attached at the end, and your initials go next to the fee percentage (Cal. Ins. Code § 15027).
• Iowa. The form must be approved by the insurance commissioner. It must say that you have the right to accept or reject a settlement even if the adjuster objects (Iowa Code § 522C.10).

How does the fee have to be written?

The fee section should tell you the rate and what the rate is charged on.

• Texas. The contract must state the hourly rate, the flat amount or the exact percentage, under the same state rule.
• Iowa, Nebraska and North Carolina. If the fee is a share of the settlement, the contract must state the exact percentage. Expenses the adjuster wants repaid out of your claim money must be listed by type with dollar estimates, and you approve any added expenses first (Iowa, Nebraska, North Carolina).
• Florida. The percentage must appear in at least 18-point bold type before your signature line. A fee on additional living expense payments is allowed only if you agree to it in a separate agreement (Fla. Stat. § 626.854).
• Louisiana. A fee that is a percentage of the claim payment, or that depends on it, is not allowed. A contract with that kind of fee is void (La. R.S. 22:1703).

Fee caps are a separate question. See how public adjuster fees work and test your number in the fee calculator.

How long do I have to cancel after signing?

A short time, and the clock differs by state.

A few states add other ways out:

• Florida. You can cancel with no penalty or fee if the adjuster does not give you a written estimate within 60 days after signing, unless the delay was outside the adjuster’s control. That right ends on the day the estimate arrives.
• California. If the adjuster misstated or hid an important fact before you signed, you can cancel with no time limit.
• Texas. If the person you signed with was not licensed, you can void the contract and owe nothing for past or future services (§ 4102.207).

Once the window closes, there may be no way out. The Texas Department of Insurance says you cannot get out of the contract after the 72 hours.

How do I cancel so that it counts?

In writing, sent to the adjuster at the address in the contract, inside the window. That is the rule in Georgia, Louisiana, Nebraska and North Carolina. Florida and California call for certified mail with a return receipt, or another kind of mailing that gives proof. Georgia also accepts a notice sent to the email address or fax number named in the contract.

One way to do it:

1. Find the cancellation section and the address in your contract.
2. Write a short letter that says you are cancelling. Date it and sign it.
3. Send it by a method that proves the date, and keep a copy.
4. Ask for the return of anything you paid.

Georgia, Iowa, Louisiana and North Carolina give the adjuster 15 business days after getting your notice to return anything of value. Nebraska allows 15 days and California allows five business days.

What can the contract not take away from me?

These limits come from the same statutes. Each applies only in the states named.

• Talking to your insurer. Georgia and Iowa bar any contract term that restricts your direct contact with your insurer, its adjuster or your own attorney.
• Your name on the checks. In Georgia, Iowa, Nebraska, North Carolina and California, the contract cannot require checks issued only in the adjuster’s name. In Texas, a public adjuster may not sign or endorse a claim check for you (§ 4102.104).
• Paying the fee as money arrives. Georgia, Iowa, Louisiana, Nebraska, North Carolina and California do not allow a term that takes the whole fee out of the first check.
• The decision to settle. In North Carolina an adjuster may not agree to a settlement without your knowledge and consent. Louisiana requires your consent in writing.
• Your choice of repair company. Iowa bars a term that makes you use a particular company. Florida, Louisiana and North Carolina bar a contract or power of attorney that lets the adjuster choose who does the repairs. See contractor or public adjuster for why the two roles are kept apart.
• Going to court. Georgia, Iowa and Louisiana bar terms that stop you from pursuing civil remedies.

What if my contract does not follow the rules?

The result depends on the state. In Florida, a contract that does not meet the contract statute is invalid and cannot be enforced. In Iowa, the same is true of a contract that is not on an approved form.

If something in your contract looks wrong, you have options. You can check the adjuster’s license in our directory and license check. You can ask your state insurance department, which licenses public adjusters, to look at the contract, or file a complaint. An attorney can tell you how your state’s law applies to your contract.

What should I look for before I sign?

• The adjuster’s name and license number, matching the state’s license lookup.
• The fee as an exact percentage, hourly rate or dollar amount, and what it is charged on.
• Any expenses you will be billed for, with dollar estimates.
• The cancellation deadline, and the address where a cancellation notice goes.
• No term that sends checks to the adjuster alone, limits your contact with the insurer, or picks your contractor.
• Your own signed copy.