An insurance adjuster works for the insurance company. A public adjuster works for you. That is the whole difference, and it explains almost everything else about how each one behaves on your claim.
There are actually three kinds of adjuster, and homeowners often meet the first two without knowing which is which.
The staff adjuster
A staff adjuster is a direct employee of the carrier. If the person who inspects your roof is on the insurance company's payroll, this is who it is. They follow the carrier's guidelines, software, and settlement authority.
Staff adjusters are not villains. Many are decent people with a heavy caseload. Half of our team came from inside insurance companies, so we say that from experience. But the person writing the estimate answers to the company that pays the claim.
The independent adjuster
An independent adjuster is a contractor the carrier hires, usually after a big storm when the staff cannot keep up. Homeowners often assume that means they are neutral. They are not. The carrier pays them, and the carrier is the client.
This is where the first meeting can mislead you. The independent adjuster is friendly, walks the roof, and says the company will be in touch. They do not argue for your claim. Their report goes to the carrier, and the carrier decides.
The public adjuster
A public adjuster is licensed to work for the policyholder. Minnesota defines the role in Minn. Stat. § 72B.02, subd. 6: "'Public adjuster' means any person who, for compensation or any other thing of value on behalf of the insured: (1) acts or aids, solely in relation to first-party claims arising under insurance contracts that insure the real or personal property of the insured, on behalf of an insured in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an insurance contract;"
The key words are "on behalf of the insured." We are not neutral. We are on the homeowner's side of the table, and we say so.
We're public adjusters, not attorneys. This is how the statute reads and how we use it; for legal advice talk to a Minnesota attorney.
Who pays each one
| Type | Who pays them | Who they work for |
|---|---|---|
| Staff adjuster | The insurance company | The insurance company |
| Independent adjuster | The insurance company | The insurance company |
| Public adjuster | You, under a written agreement | You |
The public adjuster is the only one on the list you pay. Our fee is a percentage of the approved value of each trade we take on for you (roof, siding, and so on), and we only charge it on a trade if we get the insurance company to approve more than it already had. No increase on a trade, no fee on that trade. The exact percentage is in the written agreement.
The insurance money pays for your repairs. Our fee is a separate, out-of-pocket cost you agree to in writing. Our post on who pays a public adjuster walks through the fee in more detail.
What each one can do on your claim
The staff and independent adjusters inspect, write an estimate, and recommend a decision to the carrier. They have no duty to find damage the carrier might owe on. Under every policy, the duty to prove the loss is yours.
That is the catch-22 we explain on almost every consultation call. The carrier has no obligation to look for damage or justify damage. You have to document when it happened, what caused it, why it is new, and how big it is. We cover this in our post on the burden of proof.
A licensed public adjuster does that work for you, and holds the same rights on the claim that you do. We can discuss the policy, negotiate, write our own estimate, ask for a manager, and file a Department of Commerce complaint when we have to. The carrier has to deal with us. Our short way of saying it is that we are you, with the rights you have on the claim.
A roofer can describe the damage but cannot do those things. That is a separate question, and we covered it in why your roofer cannot just handle your claim.
An honest caveat on all three
We only see denied and underpaid claims, so we are jaded. We are sure plenty of staff adjusters pay plenty of claims fairly, and we do not see those. It is not you, and it is not that your insurance company hates you. The way the process is built leaves the proving to you and the paying to them.
Nor is a public adjuster better just because the title says so. A license is the floor. Check it with the Minnesota Department of Commerce and ask who will actually handle your file. The same warning applies to us.
The short version
If someone from the insurance company is standing on your roof, they are working for the insurance company, whether they are staff or hired by the carrier. A public adjuster is the only kind who works for you and is paid by you. We can explain the difference over the phone on a free consultation, and more about the steps is on our process page. No one can honestly promise a result on a claim, and you should be suspicious of anyone who does.