How is a public adjuster's fee calculated?
Read the contract and the law for the state where the claim is handled. The fee may use a percentage, an hourly rate, or another permitted method. Identify the payments included in the calculation, any excluded amounts, additional expenses, and when payment becomes due before you compare two proposals.
That is more useful than a nationwide claim that an adjuster always takes a percentage of the entire settlement. The Texas Department of Insurance warns that the total settlement may be the fee base. Florida law excludes specified earlier payments. Louisiana law prohibits payment-based contingency fees.
Official sources checked September 3, 2026. This guide explains questions to ask, not the amount legally due under your individual agreement.
What is the difference between the rate and the fee base?
The rate is the percentage or hourly amount. The base is the amount to which a percentage applies, or the time counted for an hourly charge. Two identical percentages can produce different bills when the contracts include different payments. Get the complete calculation in dollars, including any permitted expenses.
For a simple illustration, a 10% rate applied to $50,000 produces $5,000; applied only to $15,000 it produces $1,500. These are arithmetic examples, not quotes or predictions. Whether either base is lawful depends on the state, contract, and payment history.
Ask the firm to show the calculation next to the exact contract paragraph. Label payments already received, amounts promised in writing, amounts still disputed, and any withheld depreciation. Do not accept an explanation that quietly changes between a first call and the written agreement.
Can the fee include money the insurer offered before you hired help?
It can in some situations, but it is not a universal rule. TDI says a Texas fee can be based on the total settlement, and you may owe a fee even without an increased offer. Florida residential rules treat specified previous payments and commitments differently. Check dates as well as amounts.
