What Are the Disadvantages of Hiring a Public Adjuster in Texas?

Introduction

When Texas homeowners face property damage due to storms, floods, or fires, one of the first calls they make is to their insurance company. However, navigating the claims process can be confusing and overwhelming. That’s why many turn to public adjusters for help. Public adjusters represent the policyholder’s interests and can negotiate with the insurance company on your behalf.

But while there are benefits, it’s important to consider the potential downsides. In this article, we’ll explore the disadvantages of hiring a public adjuster in Texas and provide helpful guidance to make an informed decision.

What Does a Public Adjuster Do?

A public adjuster is a licensed professional who helps policyholders evaluate property damage, prepare insurance claims, and negotiate settlements with insurers. They are different from company adjusters, who work for the insurance company, or independent adjusters, who are hired by insurers as contractors. Public adjusters work exclusively for the policyholder.

Their job includes:

• Inspecting and documenting the damage

• Estimating repair or replacement costs

• Reviewing insurance policy terms

• Submitting and managing the claim

• Negotiating a settlement

Public adjusters often charge a percentage of the claim payout, usually between 10% and 20% in Texas.

Disadvantage #1: High Fees That Cut Into Your Settlement

One of the biggest disadvantages of hiring a public adjuster is the fee. Most public adjusters charge a contingency fee, which means they get paid a percentage of the total settlement amount. In Texas, this can range from 10% to 20%, depending on the complexity of the claim.

For example, if your final settlement is $100,000 and the adjuster’s fee is 15%, you’ll be paying $15,000 to the adjuster. While that may be worth it if they help increase your payout significantly, in some cases, the gain may not be enough to offset the cost.

Disadvantage #2: Not All Adjusters Are Equally Skilled

Like any profession, not all public adjusters are equally qualified or experienced. Some may lack deep knowledge of Texas insurance laws, construction costs, or damage assessment techniques. Others may be new to the field and still learning how to negotiate effectively with insurance companies.

If you end up hiring an inexperienced or unskilled adjuster, you could end up with:

• Slower claim processing

• Poor communication

• Missed damage or underestimates

• A lower settlement than expected

Always research thoroughly, check reviews, and confirm credentials before hiring any adjuster.

Disadvantage #3: Risk of Delayed Claims

Although public adjusters aim to speed up the claims process, sometimes their involvement can lead to delays. This may happen when:

• There are disputes between the adjuster and the insurance company

• The adjuster misses important paperwork or deadlines

• The insurer requires more documentation

In some cases, policyholders find themselves waiting longer than expected to receive their payout. If you need immediate repairs or funds, this delay could be a significant inconvenience.

Disadvantage #4: Potential for Conflict of Interest

Public adjusters are supposed to advocate for the policyholder, but there can be situations where their interests don’t fully align with yours. Since they earn more when your settlement is larger, some may push for repairs or replacements that are not necessary or inflate damage estimates. This could raise red flags with the insurer and lead to disputes or claim denials.

It’s important to hire someone with integrity and to stay involved in the process yourself. Don’t just hand over everything and walk away.

Disadvantage #5: May Not Be Necessary for Simple Claims

If your insurance claim is small, straightforward, and clearly covered by your policy, hiring a public adjuster may not be necessary. In fact, you might be able to handle it on your own or with the help of a contractor’s estimate. In these cases, paying an adjuster can be an unnecessary expense.

For example, if your home has minor roof damage that will cost $3,000 to fix and your insurance policy clearly covers it, hiring an adjuster could mean giving up $300 to $600 unnecessarily.

When Hiring a Public Adjuster Might Still Make Sense

Despite the disadvantages, there are times when using a public adjuster can still be a good idea:

• If your claim is large and complex (e.g., major fire or flood damage)

• If you feel your insurer is undervaluing your damage

• If you’re not comfortable handling negotiations

• If you’ve already had a claim denied and need help appealing

In these cases, the benefits may outweigh the costs, especially if the adjuster helps you secure a much higher payout.

How Louis Law Group Can Help

At Louis Law Group, we understand how overwhelming insurance claims can be—especially after a serious disaster. If you’re unsure about hiring a public adjuster or feel your insurer isn’t treating you fairly, we can help. Our legal team assists homeowners throughout Texas with claim disputes, denials, and legal action if necessary.

We can:

• Review your insurance policy and claim

• Negotiate directly with insurers on your behalf

• Help you avoid costly mistakes

If you’re thinking about hiring a public adjuster but want a second opinion or legal support, reach out to Louis Law Group today.

FAQs About Hiring Public Adjusters in Texas

Are public adjusters legal in Texas?

Yes. Public adjusters must be licensed by the Texas Department of Insurance. Always confirm that your adjuster has a valid license before hiring them.

How much does a public adjuster cost in Texas?

Most charge between 10% and 20% of your final insurance settlement. This should be clearly outlined in your contract before any work begins.

Can a public adjuster get me more money?

Possibly. If your insurer undervalues the damage, a skilled public adjuster may help secure a higher settlement. But the fee must be weighed against any potential increase.

What should I look for in a good public adjuster?

Look for licensing, experience with similar claims, positive reviews, and a willingness to explain their process clearly. Avoid anyone who pressures you or seems evasive.

Do I need a lawyer or a public adjuster?

It depends on the situation. A lawyer may be more helpful in legal disputes or denied claims, while a public adjuster can assist with negotiation. In some cases, both may be helpful.

Conclusion

Hiring a public adjuster in Texas can be helpful, but it’s not always the right move. The fees, risks, and potential delays are all important factors to consider. If your claim is straightforward or if you have legal questions, you may be better off handling the process yourself or consulting a lawyer.

At Louis Law Group, we’re here to support you with guidance, claims assistance, or legal help if needed. Are you sure a public adjuster is the best fit for your situation?

Contact Louis Law Group today for a free consultation. Call 833-657-4812 or submit a free case evaluation form to get started. Don’t wait—let us help you take the first step toward justice and financial recovery.