TL;DR — What a Public Adjuster Costs, and the Caps Your State Puts on It
- The fee is a percentage of what the claim pays, charged after the money arrives rather than up front. Rates vary by state, claim type and how the file came in.
- Florida caps it. Fla. Stat. 626.854(11)(b) sets 10 percent for claims from an event under a Governor's state of emergency, in the year after the declaration, and 20 percent otherwise.
- Wisconsin caps catastrophe claims at 10 percent. Wis. Stat. 629.05(6), where a catastrophic disaster is an event the President or the Governor declared an emergency for.
- North Dakota bars 10 percent or more on a claim resulting from a catastrophic disaster, and bars collecting the whole fee out of the first check.
- Minnesota sets no percentage cap, but gives you 72 hours to cancel the contract after signing, under Minn. Stat. 72B.135 subd. 1.
The Honest Answer: a Share of What the Claim Pays
A public adjuster works on contingency. The fee is a percentage of the claim payments you receive, and it comes out of the money when the money arrives.
Rates are not uniform. They move with the state, the type of claim, how complex the file is, and whether the claim came in directly or through a referral. Ours run in the 10 to 20 percent range, subject to the caps below, and the exact number is written in the contract before anyone starts.
What matters more than the headline rate is the answer to three questions: what the percentage is charged on, what the statute in your state allows, and what happens if the carrier pays quickly without much work.
What the Fee Is Charged On
Read this part of any contract twice. A fee on "the total settlement" and a fee on "new money after you signed" are very different numbers on a claim that was already partly paid.
Florida writes the rule for supplements. Under Fla. Stat. 626.854(11)(a), when a public adjuster contracts to reopen a claim or file a supplemental claim on a loss the insurer already paid in part or in full, the fee may not be based on those previous payments. It has to be based only on the payments obtained after the contract was signed, and it may not exceed 20 percent of the reopened or supplemental payment.
That principle is worth applying anywhere, not just in Florida. If your claim already has money on it, the fee should attach to what the adjuster adds.
Florida: 10 Percent, 20 Percent, and a 1 Percent Case
Fla. Stat. 626.854(11)(b) sets the ceilings:
- 10 percent of claim payments for claims based on events that are the subject of a Governor's declaration of a state of emergency. That applies to claims made during the year after the declaration; after that year the 20 percent limit applies.
- 20 percent of claim payments for claims not based on a declared emergency.
- 1 percent where the insurer pays, or commits in writing to pay, the policy limit for a coverage part within 14 days after the date of loss, or within 10 days after the public adjusting contract is executed.
That third one is the honest-broker rule. If the carrier was always going to pay the limit immediately, the adjuster's percentage drops to almost nothing.
One scope note that gets misquoted: under Fla. Stat. 626.854(19), subsections (5) through (18), which include the fee caps, apply only to residential property insurance policies and condominium unit owner policies. Commercial claims are negotiated, not capped.
Wisconsin: 10 Percent When It Is a Catastrophe
Wis. Stat. 629.05(6) says a public adjuster may not receive compensation in excess of 10 percent of the insured's actual recovery if the claim is due to a catastrophic disaster. Section 629.05(1) defines a catastrophic disaster as an event for which the President or the Governor has declared a state of emergency.
So in Wisconsin the question is not how bad your loss was. It is whether your loss came from a declared event. A kitchen fire is not a catastrophe under that definition; a storm inside a governor's declaration is.
Two more Wisconsin rules protect you. If the insurer pays or commits in writing to pay the policy limit within 5 business days of the loss being reported, the adjuster may only charge reasonable hourly compensation, under 629.05(3). And under 629.06 an adjuster may not take compensation from both you and the contractor doing the work.
North Dakota: Under 10 Percent on a Catastrophe, and No Front-Loading
North Dakota's public adjuster chapter bars a public adjuster from charging or accepting compensation equal to or more than 10 percent of a settlement resulting from a catastrophic disaster. Note the wording: the Florida and Wisconsin rules cap at 10 percent, and North Dakota's bars 10 percent itself.
The same chapter blocks two contract terms worth knowing. An adjuster may not balance bill you, and may not collect the entire fee out of the first check the insurer issues rather than a percentage of each check. If the insurer pays or commits to the policy limit shortly after the loss is reported, the adjuster is limited to reasonable compensation for the work actually done.
North Dakota also requires the contract to state the specific compensation, and requires the adjuster to carry a surety bond of at least twenty thousand dollars.
Minnesota and South Dakota: No Percentage Cap
Minnesota does not cap public adjuster compensation by percentage. What Minn. Stat. 72B.135 gives you instead is an exit and a set of prohibitions.
Subdivision 1 gives you 72 hours after signing to cancel the contract in writing. Subdivision 4 bars an adjuster from paying for referrals, rebating part of the fee, splitting the fee with anyone who is not a licensed public adjuster, contacting you between 8 p.m. and 8 a.m., or holding an interest in a construction, salvage or appraisal firm.
That last one is the conflict rule people miss. An adjuster with a stake in the company doing your repairs has a reason to write the scope a certain way.
South Dakota has no public adjuster licensing chapter, so there is no state fee cap there either. The contract and the other states' licensing standards are what govern the work.
From Our Files: The Second Payment Was Bigger Than the First
On a Minnesota hail claim we handled this year, the insurer issued a payment, and then a second payment landed about two months later. The second one was slightly larger than the entire first payment.
The file does not record what caused the second payment, so we are not going to claim credit the record does not support. What it does show is the pattern that makes a contingency fee make sense: the first number is rarely the last number.
A percentage of a claim that stopped at the first check is a bad deal for you. A percentage of a claim that kept moving is a different calculation entirely, and it is the one worth running before you sign anything.
When the Fee Is Worth It, and When It Is Not
Usually worth it: a denied or underpaid claim, a large or complex loss, hidden damage the carrier's scope missed, a claim where you cannot get answers, or a commercial loss with business interruption attached. Those are the files our residential claim support and commercial claim support teams handle.
Usually not: a small claim near or under your deductible, a claim the insurer has already paid in full and correctly, or a total loss on a policy where the limit is not in dispute. In Florida and North Dakota, a quick policy-limit payment is exactly the situation the statutes carve out.
Ask for the honest read. If our answer is that you do not need us, that is the answer you should get.
Questions to Ask Before You Sign Anyone's Contract
1. What is the percentage, and what is it charged on? New payments after signing, or everything including what has already been paid.
2. Does a statutory cap apply to my claim? In Florida and Wisconsin that turns on a declared state of emergency, and in North Dakota on a catastrophic disaster.
3. What happens if the insurer pays the policy limit right away? Florida, Wisconsin and North Dakota all limit the fee in that situation.
4. How is the fee collected? A percentage of each check, not the whole fee out of the first one.
5. Is the adjuster licensed in my state, and bonded where the state requires it? Ask for the license number and check it with the state regulator.
6. What is the cancellation window? Minnesota gives you 72 hours in writing by statute; other states depend on the contract.
Frequently Asked Questions About Public Adjuster Cost
How much does a public adjuster cost?
Public adjusters work on contingency, charging a percentage of the claim payments you receive rather than an upfront fee. Rates vary by state, claim type and complexity, and several states cap them. Ours run in the 10 to 20 percent range, subject to those caps, with the exact percentage written into the contract before any work starts.
What is the maximum a public adjuster can charge in Florida?
Fla. Stat. 626.854(11)(b) caps compensation at 10 percent of claim payments for claims based on an event under a Governor's declared state of emergency, for claims made in the year after the declaration, and 20 percent for claims not tied to a declared emergency. A 1 percent limit applies when the insurer pays or commits to the policy limit for a coverage part within 14 days of the loss or 10 days of the contract. Under 626.854(19) those caps apply to residential and condominium unit owner policies.
Does Wisconsin cap public adjuster fees?
Yes, on catastrophe claims. Wis. Stat. 629.05(6) bars compensation above 10 percent of the insured's actual recovery when the claim is due to a catastrophic disaster, which 629.05(1) defines as an event the President or the Governor declared a state of emergency for. If the insurer pays or commits to the policy limit within 5 business days of the loss being reported, 629.05(3) limits the adjuster to reasonable hourly compensation.
Is there a cap on public adjuster fees in Minnesota?
Minnesota does not set a percentage cap. Minn. Stat. 72B.135 subd. 1 does give you 72 hours after signing to cancel the contract in writing, and subdivision 4 prohibits referral payments, fee rebates, fee splitting with anyone who is not a licensed public adjuster, and holding an interest in a construction, salvage or appraisal firm.
What can a public adjuster charge in North Dakota?
North Dakota's public adjuster chapter bars compensation equal to or more than 10 percent of a settlement resulting from a catastrophic disaster. It also bars balance billing and bars taking the entire fee from the first check instead of a percentage of each check, requires the contract to state the specific compensation, and requires a surety bond of at least twenty thousand dollars.
Do I pay a public adjuster if the claim is denied?
On a contingency contract the fee is a percentage of claim payments, so no payment generally means no percentage. Read the contract for what happens if you cancel after work has been done or if the adjuster advances costs, because those terms vary. Ask before signing rather than after.
Can a public adjuster charge on money the insurer already paid?
Not in Florida on a reopened or supplemental claim. Fla. Stat. 626.854(11)(a) requires the fee to be based only on payments obtained after the contract is signed, not on prior payments for the same cause of loss, and caps it at 20 percent of the supplemental payment. Elsewhere it depends on the contract wording, so check what the percentage attaches to.
Is hiring a public adjuster worth the fee?
It depends on the gap between what the insurer has offered and what the loss actually costs. The fee makes sense on denied, underpaid or complex claims where the scope is in dispute, and it does not on a small claim near your deductible or one the insurer has already paid correctly. Ask for a free review and a straight answer before you sign.
Get the Number Before You Decide
The fee question is really a math question: what the claim is likely worth with help, against what it is worth without it. Our coverage gap calculator is one way to see the size of the gap before you decide.
Send us the estimate or the denial letter and we will tell you whether the claim needs an adjuster at all. Our claim review is free, there is no upfront fee, and the contract states the percentage before any work begins.
We are licensed in Minnesota, Wisconsin, Florida, North Dakota and South Dakota.
Related Reading
- An underpaid insurance claim — how to prove the gap when the check falls short.
- Recoverable depreciation on an older roof — the holdback that is released after the work.
Shoreline Public Adjusters, LLC is licensed in Florida (FL G199012), Minnesota (MN 40962416), Wisconsin (WI 21156868), North Dakota (ND 3004392416), and South Dakota.
Shoreline Public Adjusters, LLCEmail: hello@teamshoreline.com
Phone: 954-546-1899
Fax: 239-778-9889