When your home is damaged by fire, water, a storm, or another covered event, the last thing you want is confusion about who is working for whom—or how they’re paid. At Alliance Adjustment Group, we hear questions about this all the time. Homeowners want to understand the public adjuster fee structure before they commit to anything, and that makes complete sense.
This article is our attempt to answer those questions honestly and clearly. We’ll walk you through how public adjusters are compensated in Pennsylvania, what your written agreement should include, and what state law requires of us—so you can move forward with confidence.
What Is a Public Adjuster, and Who Do They Work For?
A public adjuster is a licensed professional who represents policyholders—homeowners and business owners—during the insurance claims process. Unlike the adjuster sent by your insurance company, who works on behalf of the insurer, we work exclusively on your behalf.
Our job is to review your policy, document your loss thoroughly, prepare the claim, and work through the process with the insurance company to help ensure your claim is handled accurately. We bring the expertise and the time that most policyholders simply don’t have when they’re also dealing with the disruption of a damaged home.
The Contingency Fee Structure: We Only Get Paid When You Do
The cornerstone of how public adjusters are compensated is the contingency fee model. In plain terms: we do not collect a fee unless and until your claim is resolved and you receive a settlement from your insurance company.
This structure has an important practical implication. Because our compensation is tied directly to the outcome of your claim, we are fully invested in making sure your loss is documented completely and your claim is presented as accurately and thoroughly as possible. There is no upfront payment, no hourly billing, and no invoice sent before your claim is settled.
We believe this model is fair to policyholders—especially those who are already managing out-of-pocket expenses after a loss. It means you can access professional advocacy without having to worry about paying for help before you’ve received anything.
What to Expect From Your Written Fee Agreement
In Pennsylvania, public adjusters are legally required to provide a written contract to the policyholder before beginning any work on a claim. This requirement is set by the Pennsylvania Insurance Department and exists specifically to protect you from ambiguity, surprise charges, or unclear expectations.
Under Pennsylvania law (40 P.S. § 1171.5 and related Insurance Department regulations), the written agreement must be signed before the adjuster takes any substantive action on your behalf. At Alliance Adjustment Group, we follow this requirement without exception.
Here is what a proper written agreement should include:
- The full legal name and license number of the public adjuster or firm
- The scope of services to be provided
- A clear description of the fee arrangement, including when and how the fee is calculated
- The specific claim or loss the agreement covers
- A cancellation provision, as required by Pennsylvania law
- Signatures from both parties
If you’re working with a public adjuster in Pennsylvania and you haven’t been presented with a written agreement before work begins, that’s a serious red flag. The written contract is not optional—it’s required by state law, and it’s one of your most important protections as a policyholder.
What Factors Shape the Fee Arrangement?
While we won’t discuss specific numbers or ranges here, there are several factors that can influence how a public adjuster fee structure is defined in a given agreement. Understanding these helps you have an informed conversation when you’re reviewing your contract.
The Size And Complexity Of The Loss.
A straightforward single-room water damage claim typically involves less documentation and negotiation than a multi-area fire loss or a claim with contents, structural damage, and additional living expenses.
Where You Are In The Claims Process.
Claims that are brought to our team early—before extensive back-and-forth with the insurer—generally allow for more complete documentation and a cleaner process. Engaging a public adjuster later, after mistakes have been made or important deadlines have passed, may involve additional effort.
The Documentation Requirements.
Some claims require extensive estimates, specialist assessments, or detailed inventories. The amount of work involved is reflected in the agreement.
Pennsylvania’s Claim Timelines.
Under 40 P.S. § 1171.5, Pennsylvania law establishes specific timelines for insurer responses and claim handling. Our team understands these timelines and works within them to make sure your claim moves forward appropriately.
Does Your Insurance Policy Cover the Public Adjuster Fee?
In most cases, standard homeowner’s insurance policies do not reimburse the cost of hiring a public adjuster. The fee comes from the settlement proceeds. This is one reason the contingency model matters: it means you aren’t required to come up with funds out of pocket before your claim is resolved.
Some policyholders wonder whether working with a public adjuster is worth it, given that the fee comes from the settlement. We always encourage people to ask that question openly. Our team will have an honest conversation with you about what we’re seeing in your claim, what the process looks like, and what working with us would involve—so you can make the decision that’s right for you.
When Does It Make Sense to Work With a Public Adjuster in Pennsylvania?
Working with a public adjuster in Pennsylvania tends to be most valuable in the following situations:
- You’ve experienced significant damage from fire, storm, water, or another covered event
- You feel uncertain about whether your claim is being handled accurately or completely
- Your claim involves multiple areas of the home, personal property, or additional living expenses
- You’re finding the process overwhelming or time-consuming
- You’ve received a low settlement offer that doesn’t seem to reflect the full scope of your loss
The earlier you bring in a public adjuster, the better positioned we are to document the loss before any remediation or repairs begin. That early documentation is often critical to a well-supported claim.
Frequently Asked Questions
Is there any upfront cost to hiring a public adjuster?
No. Public adjusters who work on a contingency basis—as our team does—do not charge upfront fees, retainers, or hourly rates. Our fee is calculated based on the settled claim amount and is paid only after your claim resolves. You should not be asked to pay anything out of pocket before your insurance company has settled the claim.
What should a written agreement with a Pennsylvania public adjuster include?
Under Pennsylvania Insurance Department requirements, the written contract must be signed before any work begins. It should identify the adjuster’s license number, describe the scope of services, explain the fee arrangement clearly, identify the specific claim being handled, and include a cancellation provision. If you’re ever handed a vague or unsigned agreement, ask questions before you proceed.
When does the public adjuster actually get paid?
Payment to the public adjuster comes from the insurance settlement—after the claim is resolved and you receive your payout. This is the defining feature of the contingency model. Our interests are aligned with yours: we are not paid until you are.
Can I negotiate the terms of the agreement?
Yes, the written agreement is a contract, and you have the right to read it carefully and ask questions before signing. If anything is unclear—or if you’d like to understand how the fee was determined—our team is glad to walk through it with you. We want you to feel completely comfortable before we begin work on your behalf.
How much does it cost to hire a public adjuster if I start late in the claims process?
We can often still help even if your claim is already underway—though starting earlier is always better. If you’ve already received a settlement offer or have been going back and forth with your insurer, we’ll review where things stand and give you an honest picture of what we can do. The fee structure remains the same regardless of when you engage us: contingency-based, paid at resolution.
How Alliance Adjustment Group Works With You
At Alliance Adjustment Group, we’ve built our practice around transparency. Before we do anything, we provide you with a clear, compliant written agreement that explains exactly how we’re compensated and what we’re committing to do. We follow Pennsylvania law to the letter, and we’re happy to answer every question you have before you sign.
Our team serves homeowners and business owners across Pennsylvania—from Bucks and Montgomery Counties to Chester, Delaware, and beyond. We understand the insurance carriers operating in this region, the types of losses common to Pennsylvania weather and housing stock, and the regulatory environment that governs how claims must be handled.
If you’re facing property damage and wondering whether a public adjuster is right for your situation, we’d rather have that conversation with you than leave you guessing. There’s no pressure and no obligation—just honest guidance from people who know this process well.
Ready to talk through your claim?
Call our team at (267) 880-3000 or visit us at 435 N Main St, Doylestown, PA 18901. We’re available to answer your questions, review your situation, and help you understand your options—at no cost to you until your claim resolves.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal or insurance advice. Insurance policies, regulations, and claim procedures vary by carrier, policy terms, and state. Laws referenced are current as of the date of publication but are subject to change. For guidance specific to your situation, consult with a licensed public adjuster, insurance professional, or attorney.