Understanding Public Adjusters in Illinois

What Is a Public Adjuster?

A public adjuster is a licensed professional who works for you - not your insurance company - to help prepare, present, and settle your property damage claim. Unlike company adjusters or independent adjusters (who work for the insurance company), public adjusters represent your interests and charge you a fee, typically a percentage of your insurance settlement.

Public adjusters can be valuable when navigating complex claims, but they're also regulated by Illinois law to protect homeowners from overcharging and conflicts of interest.

Do I Need to Hire a Public Adjuster?

No. Hiring a public adjuster is optional. Many homeowners successfully handle claims with the help of their insurance company's adjuster without paying any fee. Your insurance company has trained staff whose job is to process your claim - and they don't charge you for that service.

That said, some homeowners find public adjusters helpful for large or complicated claims where maximizing the settlement is critical. Just make sure you understand what you're paying for and that the fee is reasonable.

How Do Public Adjusters Get Paid in Illinois?

Public adjusters are paid by you, not by your insurance company. Most charge a fee based on a percentage of your final insurance settlement. This means after your insurance company pays your claim, the public adjuster takes their percentage from that payout.

For example, if your settlement is $100,000 and your public adjuster charges 10%, they would receive $10,000 from your insurance proceeds.

The fee structure should be clearly stated in your contract with the public adjuster before any work begins.

What Fees Can Public Adjusters Charge in Illinois?

Under the Illinois Public Adjusters Act, public adjuster fees are negotiable, but they must be disclosed in writing and included in a contract approved by the Illinois Department of Insurance. There is no statutory cap on public adjuster fees in Illinois, which means fees can vary widely. Some charge 5–10%, while others charge significantly more.

Because fees are negotiable, you should always ask questions, compare rates, and make sure you understand exactly what services you're paying for.

If a public adjuster's fee seems excessive or wasn't properly disclosed, you may have legal recourse.

What Should Be in a Public Adjuster's Contract?

Illinois law requires public adjusters to provide you with a written contract that has been approved by the Director of Insurance. The contract must include:

• The services the public adjuster will provide
• The fee, commission, or compensation you'll pay
• How and when the public adjuster will be paid
• Your right to cancel within 5 business days

Make sure you read the contract carefully before signing. If anything is unclear - especially the fee - ask for clarification. Once you sign, the contract is binding, and you can only cancel within the first 5 business days by sending written notice via certified mail.

When Can Public Adjusters NOT Solicit Me?

Public adjusters in Illinois cannot solicit your business:

• While a loss-producing event (like a fire) is still ongoing
• While fire department or emergency personnel are still at your property
• Between 7:00 p.m. and 8:00 a.m.

If a public adjuster approaches you during these prohibited times, that's a red flag. You can report violations to the Illinois Department of Insurance at (866) 445–5364.

What Are Common Illinois Public Adjusters Act Violations?

Based on cases we've handled, common violations include:

• Excessive or undisclosed fees – Charging fees that weren't clearly explained or agreed to in writing
• Using non-approved contracts – Failing to use a contract approved by the Director of Insurance
• Operating without a license – Working as a public adjuster without proper Illinois licensing
• Kickbacks from contractors – Taking payments from restoration contractors they refer you to without disclosure
• Steering clients to preferred contractors – Pressuring you to use specific contractors due to financial relationships
• Settling claims without consent – Moving forward with a settlement you didn't approve
• Misrepresenting services – Promising results they can't deliver or exaggerating their role

If you believe your public adjuster violated the Illinois Public Adjusters Act, you may be entitled to recover improper fees or pursue other damages. For more information about handling these disputes, see our Insurance Claims & Restoration Disputes page.

Can I Cancel a Public Adjuster Contract?

Yes, but only within the first 5 business days after signing. To cancel, you must send written notice to the public adjuster via certified mail within that 5-day window.

After 5 business days, the contract is binding. If the public adjuster fails to perform, violates the Illinois Public Adjusters Act, or engages in fraud, you may have legal grounds to challenge the contract or recover fees - but that requires legal action, not simple cancellation.

When Should I Consult an Attorney About Public Adjuster Issues?

You should consult an attorney if:

• Your public adjuster is charging fees you never agreed to
• The fees seem excessive or weren't properly disclosed in your contract
• Your public adjuster is steering you toward contractors they have financial ties to
• Your public adjuster settled your claim without your consent
• You suspect your public adjuster violated the Illinois Public Adjusters Act
• Your public adjuster failed to perform the services they were hired to do

Public adjuster disputes often overlap with construction disputes when contractors recommended by the public adjuster do defective work or overcharge. If you're dealing with both contractor problems and public adjuster fee issues, legal help can address both.

How Do I Verify a Public Adjuster Is Licensed in Illinois?

Before hiring a public adjuster, verify their license with the Illinois Department of Insurance. You can call toll-free at (866) 445–5364 to confirm the public adjuster is licensed and in good standing.

Never sign a contract with an unlicensed public adjuster. Licensing ensures they've met minimum professional standards and are subject to regulatory oversight.