Top 5 Myths About Public Adjusters

Question 1

The Insurance Company Will Pay the Same Amount Regardless of Whether a Public Adjuster Is Hired.

Accepted Answer

This is one of the most common misconceptions. Studies and industry data consistently show that policyholders who hire a public adjuster receive significantly higher settlements than those who do not. Insurance companies employ their own adjusters whose job is to minimize payouts. A public adjuster works exclusively for you — the policyholder — to maximize your settlement. Having a professional advocate who understands the claims process, policy language, and damage assessment can make a dramatic difference in the outcome of your claim.

Question 2

Using a Public Adjuster Will Cause Your Premiums to Go Up.

Accepted Answer

Your insurance premiums are based on your claims history and risk factors — not on whether you hired a public adjuster. Filing a legitimate claim is your right as a policyholder. Insurance companies cannot legally raise your premiums simply because you chose to hire a professional to represent your interests. In fact, a public adjuster helps ensure that your claim is properly documented and fairly evaluated, which can actually prevent future disputes.

Question 3

Your Insurance Carrier Will Drop You if You Use a Public Adjuster.

Accepted Answer

Insurance companies are regulated by state law and cannot drop you simply for hiring a public adjuster. Your right to representation is protected. While an insurer may non-renew a policy for legitimate underwriting reasons (such as too many claims over time), the mere act of hiring a public adjuster is not grounds for cancellation. In New Mexico, as in most states, policyholders have strong consumer protections in place.

Question 4

Hiring a Public Adjuster Will Delay My Claim.

Accepted Answer

In reality, hiring a public adjuster often speeds up the claims process. Public adjusters are experts in documentation, policy interpretation, and negotiation. They know exactly what information the insurance company needs and how to present it effectively. Without professional representation, policyholders often make mistakes or omit critical documentation, which leads to delays, denials, or underpayments. A skilled public adjuster streamlines the process and keeps things moving forward.

Question 5

My Restoration Contractor Says He Can Adjust and Negotiate My Insurance Claim.

Accepted Answer

This is a serious misconception — and in many states, it is actually illegal for a contractor to negotiate insurance claims on your behalf without a public adjuster license. Contractors are experts in construction and repair, not in insurance policy interpretation or claims negotiation. Their interests may also not be fully aligned with yours. A licensed public adjuster is the only professional legally authorized and specifically trained to represent your interests in an insurance claim. Always ensure you are working with a licensed public adjuster for claim negotiations.