What Must Be in a New York Public Adjuster's Contract?
A written compensation agreement. Under 11 NYCRR § 25.6, a public adjuster in New York may be compensated only as provided by a written compensation agreement consistent with the form prescribed in § 25.13(a). The agreement must name and be signed by both the public adjuster (or sublicensee) and the insured, and it must be written in the same language principally used in the oral negotiations and presentation. Any compensation the adjuster would receive for referring you to a contractor or vendor must be prominently and clearly disclosed in that agreement. There is no valid handshake deal, and the fee is capped at 12.5 percent of the recovery under § 25.7.
Key Points
- Compensation only under a written agreement consistent with the prescribed § 25.13(a) form.
- Both the public adjuster (or sublicensee) and the insured must be named in it and sign it.
- It must be in the same language principally used in the oral negotiations.
- Referral compensation from contractors or vendors must be prominently and clearly disclosed.
- The fee cannot exceed 12.5 percent of the recovery (§ 25.7), with a limited supplemental-claim exception.
- Ask for the adjuster's New York license number and verify it with DFS before signing anything.
Read these five lines before you sign anything
One: the percentage, and exactly which payments it applies to — the full claim, or only amounts recovered above the carrier's current offer. Two: whether the fee applies to payments already issued before you signed. Three: what happens if you cancel. Four: whether the adjuster receives anything from any contractor, restoration company, or vendor. Five: the license number of the person who will actually handle your file.
A legitimate New York adjuster will answer all five in writing without hesitation, because § 25.6 requires the agreement anyway.
How we handle it
Long Island Public Adjusters is licensed in New York under License # PA-1156995. Our fee runs roughly 6 to 12 percent on a sliding scale — below the 12.5 percent regulatory ceiling — with larger claims at the lower end; a recent $800,000 total house fire was handled at 6 percent. There is no fee unless there is a recovery.
We do not take referral compensation from contractors or restoration vendors. Full detail is on our fees page, and our credentials are on the licensing page.
Official text and citation
This page is a plain-English summary written for policyholders. The controlling language is the official text of 11 NYCRR § 25.6, and your own policy governs your claim. Nothing here is legal advice.
Read 11 NYCRR § 25.6 (official text)Public Adjuster Compensation Agreement: Frequently Asked Questions
Common questions New York policyholders ask about this rule.