How to Terminate a Public Adjuster | Full Procedure Explained By Expert


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Yes, nobody likes to pay small or big amounts for the insurance bills, but it is necessary to pay for homeowners. The insurance deeds offer financial safety and protection when some catastrophic occurs to your home or any unexpected event happens. When these unlucky events happen, you have to call the insurance agent, such as storm damage to your home or water damage due to the overflowing toilet.

In 2017 6% of the homeowners made claims to their insurance companies for the issues like home fires, lightning damage, and floods. So now it’s time you need the help of public adjusters, but in this article, we will discuss how to terminate a public adjuster.

Who are Public Adjusters?

How to Terminate a Public Adjuster

Public adjuster means those insurance adjusters, who do not work for your insurance companies, but they work for you to help prepare, present, and settle their claim. You hire them by signing an agreement and committing to pay in terms of money. You agreed to pay some amount as a commission based on a percentage for the settlement or any other alternative method for compensation. 

The public adjusters should be bonded, licensed, and tested by the California state to show their interest.

Working of the Public Adjuster

Most homeowners are not aware of the working of the public adjusters, as they think that their responsibility is the same as the insurance adjuster, and they work on their behalf.

A homeowner employs the public adjuster himself, and if you hire the public adjuster at the initial stage of the issue to claim the process, it will be better for you. It will also be a great favor for you if they speak on your behalf and proceed with the insurance adjuster to the end of the claim. 

You might be surprised how you can find a reputable public adjuster. All of them do not have the good consideration of being the ambulance chasers searching for the disasters to earn money from these issues. 

Contract with the Public Adjuster

How to Terminate a Public Adjuster

The public adjuster contract with the public adjuster represents you, and it should identify the amount of fee you are agreed to pay your public adjuster. In the public adjuster contract, your contract with the agreed fee amount in the percentage should be admitted by your initials. The fee, salary, commissions, and other considerations are to be paid by the insured person making a claim.

Conditions to Cancel the Contract with a Public Adjuster

You have the right to terminate the treaty with the following conditions.

  • You can cancel the contract with your public adjuster without any obligation or penalty paid within the three business days on the date the contract is signed.
  • If the agreement was made from the catastrophic disaster as mentioned in subdivision (c) of section 15001, the person who got insurance has the right to cancel within five business days.
  • In case of cancellation of the contract with your public adjuster, any other consideration or money submitted by you will be returned within five business days according to the receipt of your cancellation agreement, and any security interest raised from out of your transaction will be canceled as well.
  • Your insurance company can also cancel the contract with the public adjuster for the non-payment issues or any other alternative if you violate the terms and conditions of the contract because your insurance company is willing and eager to work for your case so that you can reach any resolution for your claim issued. Usually, the insurance companies understand the reasons to hire professional attorneys and advocates and respond if you want to hire a public adjuster in any case.

Therefore, it is suggested that your insurance policy offers you enough coverage for damages for your losses, so it is better to hire a public adjuster after the agreement with the insurance company.

How to Terminate a Public Adjuster

To terminate the contract with your public adjuster, you have to send a mail or deliver the notification by certified mail, return the receipt required, and other forms of mailing that offer proof of mailing and a signed and dated copy of the cancellation notice.

You can also send any other written notice or send a telegram to the public adjuster at the address provided with the postage prepaid.

After the cancellation has expired, no later than three business days, the public adjuster should notify the insurer, attorney, or adjuster that he has entered into the written contract with the insured.

If the license conceals or misrepresents a fact from the insured before the execution of the contract, the insured has the right to resend the contract without having any time limit. 

According to the provisions of the law, if a loss of the property is mentioned in the head of a catastrophic disaster, the insured has the right to terminate the public adjuster and to cancel the contract with the public adjuster within the five business and calendar days after signing the contract and by having the copy of the signed contract. 

You have the right to communicate with your insurance company at any time of need during the claim process.

Reasons for Terminating the Public Adjusters

Reasons for Terminating the Public Adjusters

There are some specific reasons you want to terminate a public adjuster, as there are many linked with the reputation of the public adjuster. While they will favor some reasons for you as a homeowner, there are a few negatives to consider.

Let’s have a look at the following.

Many only go for major claims.

The big negative of the public adjuster is the type of claim they agree to work with. Most the public adjuster want to work for large claims like total loss due to the house on fire as they make money due to the final accounting or the settlement amount. This means that they only want to work for the huge cases where they can get paid more money.

Payments of the public adjuster

As a rule, you don’t have to pay the public adjuster out of your pocket. They work on the contingency rule and get the payment amount from the settlement amount they will get from you. The amount of settlement is the amount of payment that also depends on the size of the claim. The public adjusters reduce the amount for large cases because they know that settlement will be very high. On the other hand, some public adjusters increase the percentage on small cases instead of getting large settlements. 

Frequently Asked Questions

How do I know if I need the public adjusters to file my claim?

It is a fact that your insurance company has an insurance adjuster to recover the damage from your claim. However, in particular situations, you should have a professional to support and advocate for you.

If the damage is extensive and difficult to determine how much damage has occurred, many homeowners plan to hire public adjusters. If you are not agreed to the estimate of the cost from your insurance company, you can negotiate.  

When should hire a public adjuster?

The repair and claim process can take sufficient time to proceed. During the claim and repair process, you can hire the required public adjuster. For example, if the claim is settled and the extra damage is recovered during repairs, you can hire a public adjuster to reach the total cost.

What qualities should I look for in the public adjusters?

Your public adjuster should be skilled, professional in his whole service experience. You should seek out such company that has had a good reputation in the business for several years. Your public adjuster should bond and license as well. He should be responsible for the deeds and needs of his clients and able to answer all questions you have.

When is the time to make the payment to the public adjuster?

You have to pay your public adjuster at the time of contingency. Instead of paying the upfront payment, you have to pay the settlement percentage after an agreement is ended. Your adjuster will get the pre-decided amount when you accept your insurance company’s final payment. This amount will be between the ranges of 5% to 15 %.

What should I expect from the public adjuster?

Your public adjuster should assist you in every part of the claim and the public adjuster will analyze the damage, determine the cost, estimate, and make communication with the insurance company on your behalf. Your insurance adjuster will aim to maximize your claims. 


Apart from the brokers and attorneys, state-licensed public adjusters also act as legal advisers and legal representatives, experts, and professionals the government entrusts. They work as a lawful fiduciary and are made available to their clients in either federal or state to professionally or legally represent the insured people. 

You can terminate the public adjuster for many reasons discussed above in the article, and hiring public adjusters is never worth it. Because the fees they charged 35%, and you have estimated 0% risk coming out of ahead.


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