After a big storm, a stranger with a clipboard may offer to handle your insurance claim for you — for a cut of the payout. Sometimes that help is legitimate. Sometimes it’s an unlicensed pitch banking on your stress. The pitch can sound reassuring, structured, even official. Here’s how Maryland actually regulates public adjusters, and what to check before you sign anything.
A public adjuster can be a genuine ally when an insurance claim gets complicated — or a costly middleman you didn’t need. Knowing what Maryland requires of them, and what they’re required to disclose, is the difference between hiring real help and handing over a slice of your settlement for nothing. That difference matters most right after a major storm, when people show up on porches across the state faster than most homeowners can check anyone’s credentials.
What a Public Adjuster Actually Does
Maryland’s insurance regulator draws a clear line around the job: A public adjuster is an insurance claims adjuster who, for compensation, acts as an advocate for the policyholder in appraising and negotiating a first party property insurance claim.1 That distinction is the whole reason the job exists — a different kind of leverage in a process that can otherwise feel stacked against you.
“Staff Adjuster” and “Public Adjuster” Aren’t the Same Thing
Maryland draws a sharp licensing line here too: Maryland does not license staff adjusters (i.e. individuals who are employed by and adjust losses for an insurer).2 A public adjuster, by contrast, is licensed specifically to represent you, the policyholder — not the company paying the claim. That distinction matters most right after a storm, when the person on your porch has every incentive to blur it.
The Licensing Bar Is Real
Not everyone who says they’re qualified has actually cleared that bar. Maryland doesn’t hand out this license casually. Resident Public Adjusters are required to complete 24 hours of continuing education in either Property/Casualty or Public Adjuster course categories or a combination of both.2 Of the total hours that need to be completed, 3 hours must be in the category of ethics.2 That’s a standing requirement, not a one-time test.
Verify the License Before You Sign Anything
Before retaining the services of a public adjuster, you should make certain that the person has a valid adjuster license.1 Maryland’s producer license database lets you check this yourself, free, in a couple of minutes, before anyone sets foot on your property or touches your claim.
What You’re Actually Paying For
Public adjusters aren’t free, and Maryland doesn’t dictate the price. Most public adjusters charge a fee based upon a percentage of the settlement.1 The amount of the public adjuster’s fee is negotiable and the amount or percentage is not set by law.1 That means two adjusters could reasonably quote very different cuts for the same claim — the number is something to negotiate, not just accept.
Your Contract Has a Built-In Exit
Maryland’s contract rules give you a short window to change your mind. Every public adjuster contract spells out The right to cancel the contract within 3 business days of signing1, no questions asked.
What Protects You Once You’ve Signed
- Your money sits in escrow. Every public adjuster has to keep financial and business records and establish a separate escrow account for the policyholder’s proceeds.1
- They can’t sit on your payout. They have to disburse insurance settlement payments received on behalf of the insured within 15 business days1
- The license itself isn’t free. The fee to renew a Public Adjuster license is $65.2 — a small reminder that it’s a license, not a title they assign themselves.
- There’s somewhere to complain. If something feels wrong, file a complaint by contacting the Enforcement Unit of the Maryland Insurance Administration1
Common Mistakes Maryland Homeowners Make
- Assuming anyone who shows up after a storm with a clipboard is already licensed.
- Signing a contract on the spot instead of taking it home to read first.
- Never asking whether the adjuster works for the insurance company or for you.
- Treating the first fee offered as final and non-negotiable.
The Bottom Line
A public adjuster can be a real advocate when an insurance claim gets complicated, or an unnecessary cut out of your settlement — the only way to tell which is to verify the license, read the contract before you sign, and know what you can still do or undo afterward.
Sources
- Public Adjusters — Maryland Insurance Administration
- Public Adjuster: Initial And Renewal Licenses — Maryland Insurance Administration