A policyholder is required, under their policy, to prove a loss to their carrier. Few people have the necessary expertise or experience to meet that burden. A public adjuster has studied insurance policies and been licensed by the State of Texas to represent policyholders as their claim advocate. They understand concepts related to current replacement cost, property repair, business income loss, and other elements of property loss that are critical to getting a fair and proper settlement.

• Carefully review your insurance policy. Insurance policies can be long, detailed, and sometimes difficult to understand. Policies can change from year-to-year and often require that insurance claims meet specific conditions. Not meeting the conditions can result in your claim being denied or reduced payments for the property loss. A public adjuster makes sure that a claim meets all the requirements of your policy.

• Thoroughly document your loss. The public adjuster should prepare your claim, including all estimates, inventories, photographs, and other factual information that is required to prove the extent of your loss. They can inspect your property loss and submit a Notice of Loss to your insurance company.

• Work with the insurance company adjuster to agree on the proper amount owed to you. Usually, the public adjuster and company adjuster settle the claim without controversy.

Responsible public adjusters often base their fees on a percentage of the final settlement- based on the time, energy, and expertise required to effectively represent their client.

Important: In Texas, a PA’s fee is capped at 10% of the settlement of the claim.

Fees are negotiable and are usually based on the size, location, and complexity of the property loss. Some public adjusters charge flat or hourly rates, but the total fee may not exceed 10% of the settlement of the claim. Much like accountants, realtors, and other professional consultants, public adjusters offset their fees in the time they save their clients and in the amount of the claim recovery. The public adjuster does not receive a fee until the insurance company pays your claim.

By law, contractors — including roofing and restoration contractors — may not negotiate your claim with your insurance company. And, contractors may not hire adjusters to handle your claim. Insurance adjusting, especially public adjusting, requires special training and a license issued by the Texas Department of Insurance.

The Texas Department of Insurance (TDI) is the state agency that regulates public adjusters. As in most states, Texas public adjusters are required to be tested, licensed, and current on continuing education requirements.

To qualify for a license, a PA must demonstrate significant knowledge and competence in a broad range of areas related to property insurance, claims settlement, and pertinent laws and regulations.

The Texas Association of Public Insurance Adjusters (TAPIA) also plays an important role in assuring that Texas public adjusters meet high standards for professional knowledge, competence, and achievement.

Through continuing education and other training programs, TAPIA assures its members are best qualified to handle your claim. TAPIA enforces a strict code of ethics to promote the highest standard of integrity and professionalism.