What is an Independent Adjuster?

Independent adjusters serve as representatives and work on behalf of insurance companies, NOT home or business owners. They are usually not employees of the insurance company. They are hired as a third party, supervised by an Independent Adjusting Firm, and paid for by the insurance company. These firms keep a list of independent adjusters on hand; when an insurance carrier finds their staff can’t handle the volume of claims filed, they will contract those claims out to an Independent Adjusting Firm which then has their adjusters work the claims.

While people often associate this with significant events like hurricanes, tornadoes, or earthquakes, that is no longer the case. Insurance carriers rely more on these third-party companies and adjusters for daily claims and small events. It saves insurance companies money by reducing employees and overhead.

Independent adjusters are independent because they are generally independent contractors rather than salaried employees. Independent adjusters receive compensation at a daily rate or through a fee schedule, meaning they receive a percentage of the claim settlement amount.

What is a Public Adjuster?

Public Adjusters represent and work solely on behalf of the policyholder. Public adjusters negotiate directly with the insurance company and are often hired when the policyholder is concerned they won’t get a fair settlement or when a claim has been closed without being paid or paid less than necessary to repair the damage.

Public adjusters may work independently or as part of a more prominent Public Adjusting Firm. Public adjusters’ commission rate is typically 10% of the final claim settlement amount but can vary depending on case and state. Becoming a public adjuster requires a license, bond, and passage of a strict background check, and in some states may have to fulfill an apprenticeship of up to a year.

To simplify, independent adjusters work in the insurance company’s best interest and have no obligation to represent you, the policyholder. An independent adjuster’s job is to represent the rights of an insurance carrier as they handle your claim.

A public adjuster works for you – the person who holds the insurance policy. They work exclusively for you to get the best settlement possible for your claim.

About Coastal Claims:

Coastal Claims Inc. works for the client and offers residential and commercial services in multiple states. We serve as licensed property loss experts; we can help you get the best results.