Adjuster
An adjuster is a licensed professional who inspects property damage and writes or reviews estimates for an insurance claim. Adjusters are classified into three types: staff adjusters (carrier employees), independent adjusters (contracted during catastrophe events), and public adjusters (representing the policyholder).
Three Types, Three Sets of Incentives
An insurance adjuster is the professional responsible for inspecting property damage, estimating repair costs, and determining claim payouts, and the type of adjuster assigned to a claim directly shapes the outcome. There are three types of insurance adjusters, and each one has different incentives, experience levels, and tendencies that directly affect the scope and settlement.
| Type | Works For | Paid By | Incentive |
|---|---|---|---|
| Staff Adjuster | Carrier (full-time) | Salary | Close claims efficiently for the carrier |
| Independent Adjuster | Carrier (contract) | Per-claim fee | Process volume quickly during CAT events |
| Public Adjuster | Policyholder | Contingency (5-15% of settlement) | Maximize the settlement for the homeowner |
Knowing which type you are dealing with tells you what to expect before you ever open the scope of loss.
Staff Adjusters: The Carrier's Full-Time Team
Staff adjusters know their carrier's internal guidelines inside and out. They handle claims year-round, not just during storm season, so they tend to write more thorough scopes than independent adjusters. That does not mean the scope is complete. It means the items they excluded were likely excluded on purpose, following specific carrier guidelines.
When you supplement a staff adjuster's scope, expect a more structured pushback. They will cite internal pricing guidelines and carrier-specific policies. Your counter-arguments need to reference Xactimate pricing data, local building codes, and documented industry standards.
Independent Adjusters: Volume Over Precision
Independent adjusters get deployed when storms overwhelm the carrier's staff. They are processing dozens of claims per week in an unfamiliar market, often with limited knowledge of local building codes and regional pricing. The result: their scopes have the most supplement opportunity. Missed line items, incorrect measurements, wrong material specifications, and blanket depreciation rates are common.
After a major hail event, the independent adjuster who scoped your homeowner's roof may have driven in from three states away. They are not trying to short the claim - they are trying to get through 15 inspections before dark.
Public Adjusters: The Homeowner's Advocate
Public adjusters work exclusively for the policyholder, not the carrier. They write their own scope of loss, negotiate directly with the carrier, and earn a contingency fee - typically 5-15% of the final settlement. On large or disputed claims, a public adjuster's involvement often increases the settlement enough to more than cover their fee.
For contractors, public adjusters are either allies or competitors depending on the relationship. The best approach: build referral relationships with reputable public adjusters in your market. When a denied claim or significant underpayment lands on your desk, knowing a good PA to call gives the homeowner another path forward.
Further reading
Frequently asked questions
Staff adjusters work full-time for the carrier. Independent adjusters are contractors hired by the carrier, typically deployed during catastrophe events. Public adjusters work exclusively for the policyholder on contingency, usually earning 5-15% of the final settlement.
The carrier's adjuster - either a staff adjuster or an independent adjuster - writes the initial scope of loss. Public adjusters may write a competing scope on behalf of the homeowner to challenge the carrier's assessment.
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