Public adjusters in Alabama: what the law allows
On this page
Alabama does not license or recognize public adjusters, and state law reserves settling a disputed claim for someone else to licensed attorneys, so a homeowner here handles the claim personally or hires an Alabama lawyer.
15 calendar days
for the insurer to acknowledge your claim
30 calendar days
for the insurer to accept or deny
30 calendar days
for the insurer to pay
Each number is explained, with its source, in the sections below.
Can I hire a public adjuster in Alabama?
Alabama does not license or recognize public adjusters, and state law reserves settling a disputed claim for someone else to licensed attorneys, so a homeowner here handles the claim personally or hires an Alabama lawyer.
The Alabama Department of Insurance says it does not license or recognize public adjusters. The only adjuster license in the Alabama Code is for independent adjusters, who work for insurance companies, and that law says it does not let non-lawyers practice law. Alabama's attorney statute counts settling or adjusting disputed claims for others as a vocation, or acting for pay to enforce someone else's rights, as practicing law, and doing that without a law license is a misdemeanor. No Alabama State Bar opinion that names insurance public adjusters was found; the closest is a Bar ethics opinion on BP oil spill claims and a 1943 Alabama Supreme Court decision.
Alabama Department of Insurance, Licensing FAQs (show the source wording)
The source says
“Alabama does NOT license or recognize public adjusters.”Read it at the source (opens in a new tab)
Alabama Department of Insurance news release, "Navigating your insurance after Hurricane Nate" (Oct. 10, 2017) (show the source wording)
The source says
“Public insurance adjusters are not licensed or regulated in Alabama.”Read it at the source (opens in a new tab)
Ala. Code § 27-9A-3(a) (show the source wording)
The source says
“an “independent adjuster” is a person who, for compensation as an independent contractor or as an employee of an independent contractor, undertakes on behalf of an insurer to ascertain and determine the amount of any claim”Read it at the source (opens in a new tab)
Ala. Code § 27-9A-3(a) (show the source wording)
The source says
“This chapter shall not be construed to permit persons not licensed as attorneys to engage in activities constituting the practice of law.”Read it at the source (opens in a new tab)
Ala. Code § 34-3-6(a) (show the source wording)
The source says
“Only such persons as are regularly licensed have authority to practice law.”Read it at the source (opens in a new tab)
Ala. Code § 34-3-6(b)(3) (show the source wording)
The source says
“does any act in a representative capacity in behalf of another tending to obtain or secure for such other the prevention or the redress of a wrong or the enforcement or establishment of a right”Read it at the source (opens in a new tab)
Ala. Code § 34-3-6(b)(4) (show the source wording)
The source says
“As a vocation, enforces, secures, settles, adjusts, or compromises defaulted, controverted, or disputed accounts, claims, or demands between persons with neither of whom he or she is in privity”Read it at the source (opens in a new tab)
Ala. Code § 34-3-7 (show the source wording)
The source says
“Any person, firm or corporation who is not a regularly licensed attorney who does an act defined in this article to be an act of practicing law is guilty of a misdemeanor”Read it at the source (opens in a new tab)
Alabama State Bar, Ethics Opinion 2013-01, "Prosecuting a BP Claim: Ethical Considerations" (show the source wording)
The source says
“In the opinion of the Disciplinary Commission, the filing or prosecution of BP claims on behalf of another is the practice of law.”Read it at the source (opens in a new tab)
Wilkey v. State ex rel. Smith, 244 Ala. 568, 14 So. 2d 536 (Ala. 1943) (show the source wording)
The source says
“The authorities are practically unanimous in holding that the method of operation of this type of insurance adjuster constitutes the practice of law.”Read it at the source (opens in a new tab) · statute mirror; the official site could not be opened
- Regulator
- Alabama Department of Insurance
- Check a licence
- Official licence lookup
- File a complaint
- Consumer complaint form
- Consumer line
- 1-800-433-3966
How long does my insurer have in Alabama?
-
You report the claim
The first clock starts here.
-
Insurer's first response
15 calendar days
counted from the day you report the claim
-
Insurer accepts or denies
30 calendar days
counted from proof of loss, or the last documents the insurer asked for
-
Insurer pays
30 calendar days
counted from the insurer accepting the claim or an agreed amount
Property and casualty claims under policies issued to Alabama residents. The regulation says it does not cover workers' compensation, fidelity, suretyship or boiler and machinery insurance.
- To acknowledge your claim. Your insurer has 15 calendar days after you report a claim to acknowledge it, unless it pays within that time.
Ala. Admin. Code r. 482-1-125-.06(1) (show the source wording)
The source says“Every insurer, upon receiving notification of a first party claim from a first party claimant shall, within fifteen (15) days, acknowledge the receipt of such notice unless payment is made within that period of time.”
Read it at the source (opens in a new tab) - To accept or deny. After it receives your completed proof of loss, the insurer has 30 calendar days (or the number of days written in your policy) to tell you whether the claim is accepted or denied. If it needs longer it must say why within that time and update you every 45 days.
Ala. Admin. Code r. 482-1-125-.07(1) (show the source wording)
The source says“Within thirty (30) days, or the number of days specified in the policy, after receipt by the insurer of properly executed proofs of loss, the first party claimant shall be advised of the status of acceptance or denial of the claim”
Read it at the source (opens in a new tab) - To pay. Once the insurer accepts the claim, you agree on the amount and it has the paperwork it needs, it has 30 calendar days (or the time written in your policy) to send payment.
Ala. Admin. Code r. 482-1-125-.07(6) (show the source wording)
The source says“The insurer shall tender payment within thirty (30) days or the time specified in the policy, after accepting liability, reaching an agreement on the amount of the claim and receipt of any documents necessary to consummate the settlement.”
Read it at the source (opens in a new tab)
The regulation defines days as calendar days (rule 482-1-125-.03(c): "DAYS. Calendar days calculated as set forth in the Alabama Rules of Civil Procedure."). The decide and pay deadlines can be replaced by a different number of days written in the policy. The regulation says violations can be used only in Department of Insurance proceedings and are not admissible in court. Text taken from the Department's own copy of Chapter 482-1-125, marked 5/2020, which is the version linked from its regulations list on 2026-11-10.
What can I do if I disagree with the insurer?
- Complaint to the Alabama Department of Insurance. Contact your insurer first, then file a free complaint online. The Department sends it to the insurer, which has to answer, and can require a fix if the insurer did not follow the policy. It will not decide how much your claim is worth and will not help if you already have an attorney.
Alabama Department of Insurance, File a Complaint (show the source wording)
The source says“If we determine that the insurance company or insurance professional did not meet the legal obligations of the policy, we will require corrective action.”
Read it at the source (opens in a new tab) - Hire an Alabama-licensed attorney. Because only licensed attorneys can represent someone else in a disputed claim in Alabama, a lawyer is the option for paid help. The State Bar runs a Lawyer Referral Service whose member lawyers agree to charge no more than $50 for a first 30-minute consultation.
Alabama State Bar, Lawyer Referral Service (show the source wording)
The source says“Lawyers who participate in LRS agree to charge no more than $50 for an initial 30-minute consultation.”
Read it at the source (opens in a new tab) - Handle the claim yourself. The practice-of-law statute does not stop you from handling your own claim with your insurer.
Ala. Code § 34-3-6(c) (show the source wording)
The source says“Nothing in this section shall be construed to prohibit any person, firm, or corporation from attending to and caring for his, her, or its own business, claims, or demands”
Read it at the source (opens in a new tab) - Report someone acting as an unlicensed claim representative. The Alabama State Bar's Disciplinary Division takes complaints about non-lawyers practicing law and has an Unauthorized Practice of Law complaint form.
Alabama State Bar, Disciplinary Division (show the source wording)
The source says“Investigates charges where non-lawyers are alleged to have engaged in the unauthorized practice of law.”
Read it at the source (opens in a new tab)
Also worth knowing
- Alabama's Supreme Court said in 1943 that an adjuster who works for individuals against insurance companies is practicing law, and that once a claim is disputed a non-lawyer adjuster has to step aside for a licensed lawyer.
Wilkey v. State ex rel. Smith, 244 Ala. 568, 14 So. 2d 536 (Ala. 1943) (show the source wording)
The source says“But after a default, dispute or controversy has arisen, the independent lay adjuster must step aside, for then the law declares that the further adjustment or litigation must be handled by a regularly licensed lawyer.”
Read it at the source (opens in a new tab) · statute mirror; the official site could not be opened - The State Bar's 2013 ethics opinion on BP oil spill claims was prompted by requests involving people calling themselves public adjusters, and it concluded that filing or pursuing those claims for someone else is practicing law. It is about BP claims, not home insurance claims.
Alabama State Bar, Ethics Opinion 2013-01 (show the source wording)
The source says“persons holding themselves out as adjustors, public adjustors, and consultants”
Read it at the source (opens in a new tab) - A 2017 Department of Insurance storm advisory did not tell homeowners that hiring a public adjuster is illegal. It told them to understand the charges and services before signing, and said public adjusters are not licensed or regulated in Alabama.
Alabama Department of Insurance news release, "Navigating your insurance after Hurricane Nate" (Oct. 10, 2017) (show the source wording)
The source says“If you’re considering the services of a public insurance adjuster, make sure you understand how much one charges as well as what services are included before signing any contract.”
Read it at the source (opens in a new tab) - You have the right to turn down any settlement amount your insurer offers.
Alabama Policyholder Bill of Rights, Ala. Act No. 2012-510, § 3(9) (Department of Insurance summary) (show the source wording)
The source says“Policyholders shall have the right, in the event of a claim, to reject any settlement amount offered by the insurance company.”
Read it at the source (opens in a new tab) - You have the right to choose your own licensed contractor for covered repairs.
Alabama Policyholder Bill of Rights, Ala. Act No. 2012-510, § 3(10) (Department of Insurance summary) (show the source wording)
The source says“Policyholders shall have the right to select their licensed contractor or vendor to repair, replace, or rebuild damaged property covered by the insurance policy.”
Read it at the source (opens in a new tab) - If the insurer needs more than 30 days to decide, it has to tell you why and then update you every 45 days until the investigation is finished.
Ala. Admin. Code r. 482-1-125-.07(2) (show the source wording)
The source says“forty-five (45) days from the initial notification and every forty-five (45) days thereafter, notify the first party claimant in writing, verbally or electronically (e-mail) of the reasons additional time is needed for investigation.”
Read it at the source (opens in a new tab) - If your claim is still unresolved and a lawsuit deadline is approaching, the insurer has to warn you in writing about 45 days before it runs out, unless you have a lawyer.
Ala. Admin. Code r. 482-1-125-.07(4) (show the source wording)
The source says“Said notice must be sent to any first-party claimant approximately forty-five (45) calendar days before the date on which said limitations period may expire.”
Read it at the source (opens in a new tab) - On a home claim paid at actual cash value, you can ask the insurer for the worksheets showing every depreciation deduction.
Ala. Admin. Code r. 482-1-125-.09(2) (show the source wording)
The source says“Upon the insured's request, the insurer shall provide a copy of the claim file worksheets detailing any and all deductions for depreciation.”
Read it at the source (opens in a new tab) - An insurer cannot label a partial payment as final or as a release unless it paid the policy limit or you agreed to a compromise settlement.
Ala. Admin. Code r. 482-1-125-.05(3) (show the source wording)
The source says“unless the policy limit has been paid or there has been a compromise settlement agreed to by the first party claimant and the insurer as to coverage and amount payable under the policy.”
Read it at the source (opens in a new tab) - The claim-handling deadlines are enforced by the Department of Insurance. The regulation says a violation cannot be used as evidence in a court case.
Ala. Admin. Code r. 482-1-125-.02 (show the source wording)
The source says“shall not be utilized for any other purpose or admissible as evidence for any purpose in any civil or criminal court proceeding.”
Read it at the source (opens in a new tab) - The Department's complaint process will not put a dollar value on your claim, and it will not assist with a complaint if you already have an attorney.
Alabama Department of Insurance, File a Complaint ("We Cannot..." list) (show the source wording)
The source says“Determine the value of a claim or the amount of money owed to you”
Read it at the source (opens in a new tab)
Recent federal disaster declarations in Alabama
- Hurricane Isaias · Emergency declared October 9, 2026 · 4 areas: Baldwin, Escambia, Mobile, Poarch Band of Creek Indians
Federal declarations from FEMA as of November 12, 2026. A state fee limit or deadline may depend on a state declaration instead; check the cited rule. All recent declarations.
Alabama by the numbers
From 2016 to 2025 the National Weather Service logged 13,691 storm event reports in Alabama, with property damage estimates totalling $481 million, the 27th highest of the 50 states and D.C. Hurricane and tropical storm accounted for the most reported damage.
$481M
reported storm damage, 2016 to 2025
41
major disaster declarations since 2000
$811M
home damage verified by FEMA since 2002
Common questions about Alabama
Can I hire a public adjuster in Alabama?
Alabama does not license or recognize public adjusters, and state law reserves settling a disputed claim for someone else to licensed attorneys, so a homeowner here handles the claim personally or hires an Alabama lawyer. The Alabama Department of Insurance says it does not license or recognize public adjusters. The only adjuster license in the Alabama Code is for independent adjusters, who work for insurance companies, and that law says it does not let non-lawyers practice law. Alabama's attorney statute counts settling or adjusting disputed claims for others as a vocation, or acting for pay to enforce someone else's rights, as practicing law, and doing that without a law license is a misdemeanor. No Alabama State Bar opinion that names insurance public adjusters was found; the closest is a Bar ethics opinion on BP oil spill claims and a 1943 Alabama Supreme Court decision.
How long does an insurance company have to handle a claim in Alabama?
Your insurer has 15 calendar days after you report a claim to acknowledge it, unless it pays within that time. After it receives your completed proof of loss, the insurer has 30 calendar days (or the number of days written in your policy) to tell you whether the claim is accepted or denied. If it needs longer it must say why within that time and update you every 45 days. Once the insurer accepts the claim, you agree on the amount and it has the paperwork it needs, it has 30 calendar days (or the time written in your policy) to send payment.
Where do I complain about an insurer or a public adjuster in Alabama?
Complaints go to the Alabama Department of Insurance. Consumer line: 1-800-433-3966.
Sources
Every rule above was matched to the exact words below on November 10, 2026.
- Alabama Department of Insurance, Licensing FAQs
Alabama does NOT license or recognize public adjusters.
- Alabama Department of Insurance news release, "Navigating your insurance after Hurricane Nate" (Oct. 10, 2017)
Public insurance adjusters are not licensed or regulated in Alabama.
- Ala. Code § 27-9A-3(a)
an “independent adjuster” is a person who, for compensation as an independent contractor or as an employee of an independent contractor, undertakes on behalf of an insurer to ascertain and determine the amount of any claim
- Ala. Code § 34-3-6(a)
Only such persons as are regularly licensed have authority to practice law.
- Ala. Code § 34-3-6(b)(3)
does any act in a representative capacity in behalf of another tending to obtain or secure for such other the prevention or the redress of a wrong or the enforcement or establishment of a right
- Ala. Code § 34-3-6(b)(4)
As a vocation, enforces, secures, settles, adjusts, or compromises defaulted, controverted, or disputed accounts, claims, or demands between persons with neither of whom he or she is in privity
- Ala. Code § 34-3-7
Any person, firm or corporation who is not a regularly licensed attorney who does an act defined in this article to be an act of practicing law is guilty of a misdemeanor
- Alabama State Bar, Ethics Opinion 2013-01, "Prosecuting a BP Claim: Ethical Considerations"
In the opinion of the Disciplinary Commission, the filing or prosecution of BP claims on behalf of another is the practice of law.
- Wilkey v. State ex rel. Smith, 244 Ala. 568, 14 So. 2d 536 (Ala. 1943) (statute mirror; the official site could not be opened)
The authorities are practically unanimous in holding that the method of operation of this type of insurance adjuster constitutes the practice of law.
- Ala. Admin. Code r. 482-1-125-.06(1)
Every insurer, upon receiving notification of a first party claim from a first party claimant shall, within fifteen (15) days, acknowledge the receipt of such notice unless payment is made within that period of time.
- Ala. Admin. Code r. 482-1-125-.07(1)
Within thirty (30) days, or the number of days specified in the policy, after receipt by the insurer of properly executed proofs of loss, the first party claimant shall be advised of the status of acceptance or denial of the claim
- Ala. Admin. Code r. 482-1-125-.07(6)
The insurer shall tender payment within thirty (30) days or the time specified in the policy, after accepting liability, reaching an agreement on the amount of the claim and receipt of any documents necessary to consummate the settlement.
- Alabama Department of Insurance, File a Complaint
If we determine that the insurance company or insurance professional did not meet the legal obligations of the policy, we will require corrective action.
- Alabama State Bar, Lawyer Referral Service
Lawyers who participate in LRS agree to charge no more than $50 for an initial 30-minute consultation.
- Ala. Code § 34-3-6(c)
Nothing in this section shall be construed to prohibit any person, firm, or corporation from attending to and caring for his, her, or its own business, claims, or demands
- Alabama State Bar, Disciplinary Division
Investigates charges where non-lawyers are alleged to have engaged in the unauthorized practice of law.
- Alabama State Bar, Ethics Opinion 2013-01
persons holding themselves out as adjustors, public adjustors, and consultants
- Alabama Policyholder Bill of Rights, Ala. Act No. 2012-510, § 3(9) (Department of Insurance summary)
Policyholders shall have the right, in the event of a claim, to reject any settlement amount offered by the insurance company.
- Alabama Policyholder Bill of Rights, Ala. Act No. 2012-510, § 3(10) (Department of Insurance summary)
Policyholders shall have the right to select their licensed contractor or vendor to repair, replace, or rebuild damaged property covered by the insurance policy.
- Ala. Admin. Code r. 482-1-125-.07(2)
forty-five (45) days from the initial notification and every forty-five (45) days thereafter, notify the first party claimant in writing, verbally or electronically (e-mail) of the reasons additional time is needed for investigation.
- Ala. Admin. Code r. 482-1-125-.07(4)
Said notice must be sent to any first-party claimant approximately forty-five (45) calendar days before the date on which said limitations period may expire.
- Ala. Admin. Code r. 482-1-125-.09(2)
Upon the insured's request, the insurer shall provide a copy of the claim file worksheets detailing any and all deductions for depreciation.
- Ala. Admin. Code r. 482-1-125-.05(3)
unless the policy limit has been paid or there has been a compromise settlement agreed to by the first party claimant and the insurer as to coverage and amount payable under the policy.
- Ala. Admin. Code r. 482-1-125-.02
shall not be utilized for any other purpose or admissible as evidence for any purpose in any civil or criminal court proceeding.
- Alabama Department of Insurance, File a Complaint ("We Cannot..." list)
Determine the value of a claim or the amount of money owed to you
What we looked for and could not confirm
We leave a rule off the page when we cannot match it to a primary source. These are still open:
- No Alabama State Bar opinion or statement that names insurance public adjusters was found. The Bar's position that public adjusting is the unauthorized practice of law is reported by secondary sources (trade press and law-firm blogs) only. What was confirmed from primary sources: the statute text (Ala. Code § 34-3-6 and § 34-3-7), Bar Ethics Opinion 2013-01 on BP claims, and Wilkey v. State ex rel. Smith (1943).
- No Alabama statute or court decision was found that mentions public adjusters by name. The conclusion that paid claim negotiation for a policyholder is the practice of law rests on the general wording of § 34-3-6(b)(3)-(4) and the 1943 Wilkey decision, which predates the current Code and whose text here comes from a CourtListener scan that may contain typos.
- NIPR's Alabama state-requirements page was not checked; the NIPR URL tried returned a generic state selector with no Alabama text.
- Whether a public adjuster bill was filed in the 2025 or 2026 Alabama sessions was checked by web search only (nothing found; latest bill found was HB 181 in 2016, which did not pass). The Alabama Legislature bill database was not searched directly.
- Policyholder deadlines (time to give notice of a claim, time to sue the insurer) were not researched to a statute that states them plainly for insurance claims, so the list is empty.
- Appraisal: no Alabama statute, regulation or Department page on appraisal of property claims was found, and no state-run mediation program for property claims was found. Appraisal rights would come from the policy itself; not verified.
- Chapter 482-1-125 was read from the Department of Insurance copy marked 5/2020. The Alabama Administrative Code site (admincode.legislature.state.al.us) was not checked for a later amendment.
- The Department license lookup URL was taken from the link labelled 'Licensee Search' on the Department's licensing page; the lookup page itself was not opened. It covers producers and independent adjusters, not public adjusters.
- The Policyholder Bill of Rights quotes come from the Department's summary PDF of Act 2012-510, not from the codified statute, which was not located.