What Is A Public Adjuster License?
Public Adjusters are consumer advocates who serve on the policyholder side of property insurance claims, negotiating with insurance adjusters to ensure fair settlement according to the policy terms. Public Adjuster licenses are state certifications for these insurance professionals, meant to produce high standards of service and encourage adherence to laws and regulations in the property insurance space.
A licensed Public Adjuster can help policyholders navigate state and federal insurance regulations, understand insurance policy language, assess property damage, estimate repair costs, and negotiate with insurance companies to ensure claimants receive a fair settlement.
Public Adjuster Licenses Vary By State
The requirements to get licensed and become a Public Adjuster varies from state to state. While most states require that a Public Adjuster be licensed, some states do not require a Public Adjuster license, like in Alaska, Maryland, and Wisconsin, and others simply do not allow the practice of public adjusting at all, for example Alabama and Arkansas.
Some states like California, Florida, and Texas require applicants to complete pre-licensing courses, pass state exams, and require license holders to fulfill continuing education requirements to maintain their license. States also require individuals to obtain a Public Adjuster surety bond in order to practice legally, to safeguard consumers from underperformers or bad actors.
Each state is different, so make sure to check the National Insurance Producer Registry (NIPR) to search for license requirements by state and to apply for your public adjuster license online. You can also seek out information on your state Department of Insurance website (or department with equivalent oversight), or from your state’s professional public adjuster association.
Public Adjuster License Reciprocity
Certain states offer license reciprocity agreements, making it easier for a Public Adjuster already licensed in one state to become licensed in another by allowing them to apply for a license in the new state without having to take another exam or pre-licensing course. This can be particularly useful for Public Adjusters who work in multiple states or in areas prone to natural disasters where out-of-state adjusters may be needed.
Why Are Public Adjuster Licenses Important?
“Licensing protects consumers from potentially unscrupulous or inexperienced practitioners who might take advantage of vulnerable policyholders in the aftermath of a disaster.” - Ted Patestos, Tiger Adjusters®
Requiring licenses for Public Adjusters ensures a baseline level of knowledge and expertise for licensed Public Adjusters within a given state. A licensed Public Adjuster has a fiduciary duty to their client, and is obligated by their state's licensing standards to advocate for their client as best they can.
Depending on the state, the unlicensed practice of public adjusting can be a crime that can result in a prison sentence of up to two years. Contractors often purport to be able to negotiate with the insurance company, but they are not trained to negotiate a claim, nor are they licensed public adjusters.
Earning Clients’ Trust
Policyholders want to know that the person they’re hiring is qualified to represent their claim. Having a state-issued public adjuster license helps policyholders feel at ease working with you because they are confident that you know your stuff.