Public Adjusting Practices
Public Adjusting Practices
This domain tests the public adjuster's role: representing the insured, preparing and presenting a claim, and negotiating settlement within legal and ethical limits. The adjuster does not adjust for the insurer and cannot bind coverage.
Licensing and contract
New York requires a public adjuster license from the Department of Financial Services. A written contract is required, and the insured generally has three business days to rescind. The contract must state compensation and scope. A public adjuster may not act as a contractor or receive undisclosed compensation from repair vendors.
Claim process and documentation
Notice, proof of loss, inventories, photographs, receipts, and expert reports build the record. The adjuster should separate covered damage from maintenance and ordinance issues, document causation, and track deadlines. Negotiation should rest on policy language and evidence, not on the insurer's first offer.
Worked example
An insured signs a contract with a 10% fee on the net settlement. The insurer pays $130,000 after applying a $20,000 deductible to a $150,000 covered loss. Fee = 10% × $130,000 = $13,000; the insured receives $117,000 before other costs. Reasoning: the fee is calculated on the amount actually received for the claim, not on the gross damage estimate. If the contract were rescinded within the rescission period, no fee would be owed.
Traps
Do not promise a specific settlement. Do not sign a contract without rescission notice. Do not negotiate for the insurer. Do not accept a proof-of-loss figure you cannot document. Do not take compensation contingent on using a particular contractor.