Choosing a public adjuster comes down to three checks before you sign anything: the license, the person and the contract. A friendly knock on the door or a confident pitch answers none of them. This guide walks through each, with North Carolina's rules first and a checklist at the end.
What a public adjuster does
When you file a claim, the insurer assigns an adjuster who works for the insurer. A public adjuster, in the North Carolina Department of Insurance's words, "is hired by and works for the person filing the claim to help with the filing, negotiation, and settlement of the claim."
Once you sign, the public adjuster becomes your representative. The insurer should then deal with them instead of you, and it has the right to ask for a copy of your contract. The work can cover the whole claim: inspecting the damage, listing everything lost, pricing the loss, reading the policy and handling the paperwork.
A public adjuster is not a lawyer. For legal advice or a lawsuit, you need an attorney, and a good public adjuster will tell you when you've reached that point.
Do you need one?
Not for every claim. NC DOI suggests considering a public adjuster, or "a private attorney versed in handling insurance claims," if the claim is large or complicated, or if you can't reach a settlement with the insurer yourself. In practice, that tends to mean:
- Several kinds of loss at once: the house, your belongings and living expenses.
- More requests and paperwork than you can keep up with alongside work and family.
- An estimate that misses damage you can point to.
- A disagreement that hasn't moved after you've asked the insurer to explain it.
You can talk to one before you file. Early on, a review can tell you what the policy covers and whether the damage clears your deductible, before anything is on the record.
How to check a public adjuster
Before anything else
Check the license
Public adjusters must be licensed to work in North Carolina. Ask to see the license, write down the full name and license number, and check it with NC DOI on 855-408-1212 or through the state's online lookup. You're looking for an active license for public adjusting, in the name of the person in front of you. Here is what one looks like, for our reviewer.
After a big storm, adjusters arrive from other states. They need a North Carolina license too, so ask for a permanent business address and check it.
Before you talk terms
Ask the right questions
- What is the fee, and what is it charged on? The whole settlement, or only what's paid after you sign? Does it apply to living expenses and to recoverable depreciation paid later?
- Who will work my claim? The person selling the contract isn't always the person who'll inspect the house and answer your calls.
- Have you handled this kind of loss, and this insurer?
- Can I talk to local references? NC DOI also suggests asking the department about the adjuster's complaint history and checking with the Better Business Bureau.
- How will the checks be paid? NC DOI says to make sure they are payable to you and the public adjuster.
- How long will it take, and how will you keep me updated?
NC DOI suggests meeting two or more public adjusters before you choose.
Before you sign
Read the whole contract
NC DOI's advice is to read it and "DO NOT SIGN until you understand and agree to the contract terms." Be sure you understand the total fee or percentage, when your payments will be due, and whether you can cancel and what that would cost. No blanks, and take a copy with you.
Within three business days
Know how to cancel
In North Carolina, you can rescind the contract after signing. The rescission must be in writing and mailed or delivered to the public adjuster, at the address in the contract, within three business days of signing. Use a method that gives you proof, such as certified mail, and keep a copy.
What it costs
Public adjusters are usually paid a percentage of the settlement. NC DOI's example: on a 10% contract, a $50,000 settlement means you owe $5,000. If the claim comes from a catastrophic incident, North Carolina law caps the fee at 10% of the settlement. The department's guide names no cap for other claims, so on those the percentage is whatever the contract says, and it's worth comparing.
The percentage is only half the question. The other half is what it's charged on:
| On a 10% contract | Amount |
|---|---|
| The insurer's offer before you sign | $45,000 |
| The final settlement | $60,000 |
| Fee charged on the whole settlement | $6,000 |
| Fee charged only on the increase | $1,500 |
Those are two very different contracts. Ask for the fee base in writing, with an example in dollars.
Ask what the percentage is charged on, not just what the percentage is.
One more North Carolina rule: if your insurer offers to pay the full policy limits within 72 hours after you reported the loss, a public adjuster can't take a percentage of the settlement. They may charge a reasonable fee for their time and expenses instead, and must tell you the insurer's payment might not go up.
Red flags
NC DOI warns that after a large disaster, "some dishonest and unqualified individuals might pose as public adjusters, pressure you to sign an unfavorable contract, or try to take advantage of you in other ways." If someone shows up on your doorstep the day after a storm, the license check matters more, not less. What to do in the first 48 hours after property damage covers what not to sign on the doorstep.
If you're in another state
The rules differ, sometimes a lot. A few examples to show how much:
| State | Time to cancel | Fee cap |
|---|---|---|
| North Carolina | 3 business days, in writing | 10% on claims from a catastrophic incident |
| Texas | 72 hours, in writing | 10% of the settlement |
| Florida | 10 days; longer after a declared emergency | 20%, or 10% on some claims after a declared emergency |
Check the current law with your state's insurance department before you sign; the statutes are linked under Sources.
If something goes wrong after you sign
Put your concerns to the public adjuster in writing first. If that doesn't settle it, NC DOI's Consumer Services Division takes questions and complaints on 855-408-1212. If a settlement check is being held or you think you need to end the contract, talk to a lawyer.
If you'd like a licensed public adjuster to look at your damage before you file, that is what Avow does.
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Before you hire a public adjuster
- License checked with NC DOI, with the name and number written down
- Permanent business address noted
- Met with two or more public adjusters
- References and complaint history checked
- The fee and what it's charged on, in writing, with an example in dollars
- Checks payable to you and the public adjuster
- Nothing paid up front
- Whole contract read, no blanks, copy kept
- The three-business-day cancellation date on the calendar
Sources
- North Carolina Department of Insurance: a consumer's guide to public adjusters
- Texas Insurance Code, chapter 4102: public insurance adjusters
- Florida Statutes § 626.854
This is general information, not legal advice. Your policy's wording decides what is covered, and rules differ from state to state.