How Much Does It Cost to Hire a Public Adjuster?

How Much Does It Cost to Hire a Public Adjuster in New York?

In most cases, the cost of hiring a public adjuster is based on a contingency fee, not an hourly rate or upfront payment.

This means:

• You do not pay out of pocket to hire a public adjuster

   

• The public adjuster only gets paid if and when you get paid

   

• The fee is a percentage of the insurance recovery

   

In New York State, public adjuster fees are regulated by law. The maximum public adjuster fee allowed is 12.5% of the amount recovered.

Public Adjuster Fees vs. Opportunity Cost

When considering public adjuster fees, it’s important to look beyond the percentage and consider opportunity cost.

Policyholders who handle claims alone often:

• Accept low initial settlement offers

   

• Miss damages or coverages

   

• Make mistakes early in the process that cannot be undone

   

• Experience long delays and underpayment

   

In many cases, the loss of potential recovery far exceeds the public adjuster fee. Hiring a public adjuster early can help avoid costly mistakes and maximize your claim outcome.

How Are Public Adjusters Paid During the Claims Process?

A common question is how public adjusters are paid when claims involve multiple payments.

Property insurance claims are rarely settled all at once. They may include:

• Undisputed initial payments

   

• Supplemental payments

   

• Recoverable depreciation

   

The public adjuster is typically paid proportionally as the insurer releases funds, based on the agreed-upon percentage, until the claim is fully settled.

Additional Costs: Do You Need to Hire Experts?

While public adjusters work on contingency, some claims require outside experts, such as:

• Engineers

   

• Specialty consultants

   

• Other claim support professionals

   

If experts are needed, those costs are usually paid by the insured as reimbursable claim expenses. A public adjuster can help determine whether experts are necessary and assist in selecting qualified professionals.

Is Hiring a Public Adjuster Worth the Cost?

For major fire, water, or storm damage claims, many policyholders find that the increased settlement achieved with professional representation more than offsets the cost of hiring a public adjuster.

Ultimately, understanding how much does it cost to hire a public adjuster helps you make an informed decision—one that can significantly impact your financial recovery.