Public Adjuster Contracts & How They Get Paid On Insurance Claims

We get asked about public adjuster contracts all the time including how do they get paid, what to look out for, should I sign with a public claims adjuster or the insurance company’s adjuster, who actually pays them and when, and how to terminate the contract to fire my adjuster?

But let’s start from the beginning. When there’s a home or business disaster, most policyholders do not have the capability to investigate and negotiate property insurance losses. They need someone with expertise to help resolve any losses and understand the scope of coverage that policyholders have the right to. This involves properly investigating the affected home or business and making sure that the policyholder’s insurance has fully covered them for their losses.

There is a process to follow when hiring a public adjuster to look at your damages and repairs. Here’s everything you need to know about public adjusters in Illinois.

Signing a Public Adjuster Contract

Illinois law requires the public adjuster to provide you with a written contract that has been approved by the Director of Insurance. The contract should specify the following:

• Services the public adjuster will provide for you.
• Any salary, fee, commission, compensation, or other consideration he or she will receive for those services.
• The contract must be approved by the Illinois Department of Insurance.
• The public adjuster and its company must maintain a minimum of $20,000 bond.
• No settlement can be made without the approval of the property owner.

Here is a sample template of the contract under the state of Illinois. The contract you sign is binding and can only be terminated by certified mail within ten business days after the date the contract was signed with the public adjuster. To learn more about property owner’s rights to cancel their contract, read this.

How Do Public Insurance Adjusters Get Paid?

The Illinois Public Adjusters Act controls your public adjuster’s rate and contract. Usually, the public insurance claims adjuster will get paid a percentage of the settlement figure; the larger the recovery, the greater the fee paid. Therefore, the property owner and the public adjuster have a mutual goal: to maximize the claim legally and seek out all portions of the policy of insurance allowing for recovery.

Typically, 10%-15% is the going rate. However, with larger claims the rates do go down. With smaller or more complicated claims, the rates may go up. You can learn more about these costs and situations by reading another article we wrote that weighs the Cost Vs Value of Public Insurance Adjuster Fees.

One thing to be on the lookout for is the company adjusting firm that has a hidden owner. These are the firms where the company’s owner is not licensed. This is illegal in Illinois and is occurring as of the writing of this blog. Do your homework.

The Department of Insurance keeps a record of the alleged owners and operators. At Harris Claims Services, we will match any legitimate fee structure. Harris Claims Services is operated and controlled by Jason Harris who is a bonded and licensed public adjuster. Jason Harris is also a practicing attorney who used to work for insurance companies. Now he works for YOU! This gives him and you a distinct advantage over other public adjusters or insurance claims adjusters.

At Harris Claims Services, we guarantee that you will not only receive “peace of mind” but also that you will receive more than what the insurance company wants to give you. In fact, we can get you up to 35% more out of your fire, vandalism, or natural disaster claim.

We also have extensive knowledge in property damage restoration, emergency services such as boarding up the place, and temporary housing while things are getting returned back to normal. Remember, knowledge is power, power is leverage and leverage will get you what you are entitled to.

Contact us today to get help filing your claim and get more information about contracting us as your public adjuster. HCS is located in Lincolnwood, IL near Chicago.