Public Adjuster vs Supplement Company: Which Do You Need?

Public adjusters and supplement companies both help recover more money on insurance claims. But they work for different people, at different stages of the claim, with different scopes of responsibility. Confusing the two leads to hiring the wrong one for your situation.

Quick Comparison

Factor	Public Adjuster	Supplement Company
Hired by	The homeowner (policyholder)	The contractor
Represents	The policyholder's interests	The contractor's interests
Scope of work	Entire claim (inspection, estimate, negotiation)	Supplemental estimate on existing claim
When they get involved	At the beginning of the claim or after a dispute	After the adjuster's initial estimate is received
Licensing required	Yes, state-licensed	No specific license required
Typical fee	5-15% of total claim settlement	8-15% of approved supplement amount
Writes estimates in	Xactimate	Xactimate

What a Public Adjuster Does

A public adjuster works for the homeowner. They are licensed by the state to represent policyholders in insurance claims. Their involvement typically covers the entire claim lifecycle:

1. Inspect the property damage
2. Write a complete estimate in Xactimate
3. Submit the claim or reopened claim to the carrier
4. Negotiate with the carrier's adjuster on behalf of the homeowner
5. Manage the claim through settlement

The public adjuster's goal is to maximize the homeowner's settlement. They are not working for the contractor, though their work benefits the contractor indirectly because a larger settlement means more budget for the repair work.

What a Supplement Company Does

A supplement company works for the contractor. After the carrier's adjuster has inspected the property and issued an initial estimate, the supplement company reviews that estimate and identifies what was missed.

Their process:

1. Receive the adjuster's estimate (PDF or ESX file) and the contractor's documentation
2. Review the scope against the documented damage
3. Identify missed line items, underpaid items, and scope gaps
4. Write a supplemental estimate in Xactimate
5. Submit the supplement to the carrier
6. Handle the negotiation with the carrier on the supplemented items

The supplement company's goal is to recover the correct scope for the contractor so the contractor is not doing work that the carrier has not paid for.

Key Differences in Practice

Client Relationship

This is the most important distinction. The public adjuster works for the homeowner. The supplement company works for the contractor. These are different clients with aligned but distinct interests.

Timing

Public adjusters can get involved at any point in the claim, including before the carrier's adjuster inspects. Supplement companies get involved after the initial estimate is already on the table. They need the adjuster's estimate as the starting point for their supplement.

Scope

Public adjusters handle the entire claim from inspection to settlement. Supplement companies handle just the supplement, starting from an existing estimate and recovering the difference.

Licensing

Public adjusters must be licensed in the state where they operate. Licensing requirements vary by state and typically include passing an exam and carrying a bond. Supplement companies do not require a specific license, though individual estimators may hold Xactimate certifications.

When to Recommend a Public Adjuster

As a contractor, you cannot hire a public adjuster yourself. But you can recommend that the homeowner hire one. Situations where a PA adds the most value:

• Large, complex losses (fire, major water damage, catastrophic storm damage)
• Claims that have been denied or significantly underpaid
• Homeowners who are overwhelmed by the claims process
• Disputes where the carrier's adjuster and the contractor cannot agree on scope

When to Use a Supplement Company

Supplement companies make sense for contractors when:

• You receive adjuster estimates that consistently miss items
• You do not have in-house Xactimate expertise for supplement writing
• Your volume is high enough that you cannot write supplements on every claim yourself
• You want to focus on production while someone else handles the estimating and negotiation

How CapOut Fits Both Workflows

Whether you are working with a public adjuster or a supplement company, the process often starts with an insurance PDF estimate that needs to be in Xactimate. CapOut converts those PDFs and sends them directly to your Xactimate account, which speeds up intake for both PAs and supplement companies. Beyond conversion, the same upload gives you a profit breakdown by trade through PreCap, material and labor orders with real-time margin tracking, and an AI claim assistant that writes cited responses to adjuster denials from 50,000+ adjuster emails, building codes, and manufacturer specs. The claim assistant is especially useful for supplement companies responding to line item denials. Free to start with 300 tokens, no credit card required.

The Bottom Line

Public adjusters represent homeowners on the full claim. Supplement companies help contractors recover missed scope. They serve different clients at different stages of the process. Know which situation you are in before deciding which service to use.