When disaster strikes—whether it’s water damage, fire, or mold—the insurance claim process can be overwhelming. That’s where public adjusters often step in, offering to handle the paperwork and negotiate on your behalf. While some homeowners feel relief having someone on their side, others find the involvement of a public adjuster adds more confusion, delays, and in some cases, serious conflict of interest.
If you’re considering hiring a public adjuster, here’s what you need to know before signing any agreement.
✅ The Pros of Hiring a Public Adjuster
- They work for you—not the insurance company.
A public adjuster is licensed to represent the policyholder, not the insurer, which can help balance the scales during a claim. - They can help with complex claims.
For large losses or confusing policies, a knowledgeable adjuster may help interpret coverage and present the claim in a way that maximizes payout. - They may help prevent denied or underpaid claims.
In theory, having a professional submit documentation and estimates can strengthen your case.
⚠️ The Cons (and Hidden Risks) of Hiring a Public Adjuster
While those benefits sound good, there are downsides—some of which homeowners don’t find out until it’s too late.
1. Conflict of Interest: Restoration or Construction Ownership
Some public adjusters don’t just advocate for you—they also own restoration or construction companies that they recommend for the work. That creates a massive conflict of interest. The person “helping” you get a bigger payout may be doing so only because they plan to profit from the repairs themselves.
When an adjuster stands to benefit financially from the claim and the work, objectivity often goes out the window.
2. Kickbacks and Pushy Referrals
Have you ever been told you “must” use a certain contractor because they “know how the process works”? Be cautious. In many cases, that recommendation isn’t about quality or speed—it’s about kickbacks.
Some public adjusters have backdoor agreements with contractors who give them a cut for every job they land. That’s not in your best interest. It’s your home, your claim, and your choice.
3. They Take a Percentage—Even When It’s Simple
Public adjusters typically take 10–20% of your total settlement—even if your claim didn’t need their help to begin with. For straightforward water damage or fire claims, that fee can eat into your restoration budget and force you to cut corners during repairs.
🛠️ What Restoration Contractors See Behind the Scenes
As a company that works directly with both insurance companies and homeowners, we’ve seen it all:
- Claims held up for weeks while a public adjuster argues over trivial line items
- Homeowners pressured to use specific contractors they didn’t feel comfortable with
- Adjusters inflating scopes or changing documentation to maximize their own profit
While some adjusters are professional and ethical, we’ve unfortunately encountered many who make the process harder—not easier—for the people they’re supposed to help.
🤝 The Bottom Line: It’s Your Claim. Don’t Give Away Control
If you’re dealing with a complex claim or feel your insurance company isn’t being fair, a public adjuster might be helpful. But always do your research:
- Ask if they own or are affiliated with any restoration or construction companies
- Get a clear breakdown of their fees and how they’re paid
- Never feel pressured to use a specific contractor—you have the right to choose
At MSI, we’ve been helping homeowners recover from damage since 1998. We work directly with your insurance, with full transparency, and we never offer or accept kickbacks. We let our work speak for itself.