How does a Public Adjuster compare to an Independent Adjuster?

These terms are definitely confusing, and we want to shed a little bit more light on what the differences between these types of insurance adjusters are, each type of insurance adjusters’ duties, and who they work for. Knowing the difference can make a huge impact on the final result of your insurance claim.

Public Adjuster vs. Independent Adjuster

Public adjusters are licensed insurance adjusters that represent the general public, homeowners, business owners, and insureds when they’ve had property damage or other direct physical loss to their home or business. Independent adjusters are also licensed insurance adjusters, and have similar qualifications to public adjusters, but they work for and on behalf of the insurance company. 

VIP Adjusting is a public adjusting company operating in the Treasure Coast, representing the homeowners and business owners of St Lucie County, Martin County, Indian River County and the surrounding areas. We fight for you and act as advocates for your claim against the insurance company.

Public Adjuster defined

Public adjusters are sometimes also referred to as private adjusters, public insurance adjusters, or private insurance adjusters. They might also be called a “PA.” Public adjusters are licensed and regulated by the state of Florida through the Department of Financial Services and overseen by Florida’s Chief Financial Officer.

The term public adjuster is defined by Florida Statute 626.854 as any person, except a duly licensed attorney at law who, for money, commission, or any other thing of value, prepares, completes, or files an insurance claim form for an insured, or acts on behalf of or aids an insured in negotiating or effecting the settlement of a claim for loss or damage.

A public adjuster is also any person who, for money, commission, or any other thing of value solicits, investigates, or adjusts such claims on behalf of a public adjuster. Other individuals may assist a public adjuster in their duties, and other professions, such as general contractors may perform duties that are typically associated with their license (like preparing estimates). General contractors cannot, however, negotiate with the insurance company on an insured’s behalf.

Attorneys may act as public adjusters but are exempt from licensure

Attorneys are exempt from the licensing requirement because they are already qualified to evaluate Insurance contracts and negotiate settlements by nature of their bar license. An attorney who would like to obtain a public adjuster license must also go through the requirements and testing from the state of Florida. VIP Adjusting’s founder is both an attorney who is a member of the Florida bar, as well as a licensed public adjuster.

Public Adjusting engages the Public Trust

Because public adjusters work for homeowners and other citizens of the general public, public adjusting engages the public trust. That means a duty must be exercised where the interest of the claimant is fairly and honestly put above the public adjusters own interests. 

Public adjusters in Florida are held to very high standards, including multiple different required codes of ethics. One code of ethics is for all adjusters in Florida under Florida Administrative Code 69B-220.201. Public adjusters are also governed by Florida Administrative Code 69B-220.201(4)(5).

The public adjusters at VIP Adjusting are also members of the Windstorm Insurance Network and have been certified as appraisers and umpires, adding additional codes of ethics to which they have agreed to be bound above and beyond the ordinary codes of ethics. 

Public Adjusters work on behalf of the homeowner. Always!

Public adjusters fight for you! Their duty is to advocate for you and your claim. The purpose of insurance is to put you whole after a loss, subject to a deductible. Your insurance company is supposed to be restoring you to pre-loss condition, and your public adjuster’s job is to make sure that an insured gets paid fairly for their claim and that the insurance company is not causing unreasonable delays or taking advantage of the insured. 

Most public adjusters charge a percentage of recovery as a fee. Studies conducted by the state of Florida have shown that the average difference in payment between a homeowner making a claim on their own and a homeowner who has retained a public adjuster, more than makes up for the cost of paying a public adjuster. That figure is based only on the average dollar value of the claim without accounting for delays, denials, or other missteps related to a homeowners inexperience. 

Independent Adjusters work for insurance companies

What a misnomer, right? You read that right, though. Independent adjusters are licensed and governed by the state of Florida, similar to public adjusters, but their license does not allow them to represent homeowners or insureds. They work FOR the insurance company.

Independent adjusters either represent insurance companies directly, or work for third party adjusting companies that are retained by insurance companies on a job-by-job basis. 

Despite the fact that an independent adjuster’s salary is paid by the insurance company, many homeowners are lulled into a false sense of security because this adjuster interacts with them and may even seem very friendly. Independent adjusters may also make certain promises while walking through the insured’s home even though he doesn’t have the final say as to what gets paid. Homeowners may be confused thinking that because the adjuster is called “independent,” then his evaluation should be independent. This is not correct. 

When VIP Adjusting handles a supplemental claim for a homeowner, we often hear that homeowner refer to the prior evaluation by an independent adjuster as the report prepared by “my adjuster.” Remember, an independent adjuster works for the insurance company, NOT for the homeowner. 

Even when an independent adjuster is following all ethical guidelines, the continuation of his employment still hinges on the insurance company paying as little as possible for your claim, and even when an independent adjuster is well meaning, there’s a representative inside the insurance company that often reviews and modifies that estimate before it’s approved for payment.

What to do if you have damage

If you’ve suffered loss or damage at your home, it’s best to get in touch with a public adjuster like VIP Adjusting as early on in the process as possible. In addition to having experienced professionals working for you to make sure you’re paid fairly for your claim, a public adjuster also works to prevent delays in the claim, and protect you from the potential landmines of doing it yourself.  

VIP Adjusting always fights for you!

You might also be interested in:

Learning more about VIP Adjusting’s background

Why you should hire a public adjuster

Learn more about different types of damages that can result in insurance claims