What Are the Rules for Public Adjusters in New York, and What Can They Charge?
11 NYCRR Part 25 governs licensed public adjusters in New York. A public adjuster may only be compensated under a written compensation agreement consistent with the form prescribed in § 25.13(a), signed by both the adjuster (or a sublicensee) and the insured, and written in the same language used in the oral negotiations. Under § 25.7, a public adjuster may not charge more than 12.5 percent of the recovery, except that up to 20 percent may be charged on a supplemental claim if the aggregate fee stays at or below 12.5 percent of the full claim payment. Referral compensation counts toward that cap and must be prominently disclosed in the written agreement, and certain referral compensation is prohibited outright.
Key Points
- Compensation only under a written agreement matching the prescribed form in § 25.13(a).
- The agreement must name and be signed by both the public adjuster (or sublicensee) and the insured.
- It must be in the same language principally used in the oral negotiations and presentation.
- Maximum fee: 12.5 percent of the recovery.
- Up to 20 percent on a supplemental claim, only if the aggregate fee stays at or below 12.5 percent of the full claim payment.
- Compensation for referring you to a contractor or vendor counts as compensation from you and toward the cap, and must be prominently disclosed in the written agreement.
- Some referral compensation is prohibited entirely under § 25.7(c).
How to check that an adjuster is legitimate
Ask for the New York public adjuster license number and verify it with the Department of Financial Services. Then read the compensation agreement: the percentage, what payments it applies to, who signs it, and whether it discloses any referral compensation. Part 25 requires that document — a handshake arrangement is not compliant.
Long Island Public Adjusters is licensed in New York under License # PA-1156995. Our fees run 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.
Why the referral rule exists
The referral provisions address a real conflict: an adjuster paid by the contractor who repairs your property is no longer purely your advocate. Section 25.7(b) treats referral compensation as compensation from you and counts it toward the fee cap, § 25.6(e) requires prominent written disclosure, and § 25.7(c) prohibits certain referral compensation entirely.
The practical question to ask any adjuster: do you receive anything, directly or indirectly, from any contractor, restoration company, or vendor you recommend? The answer belongs in writing.
Official text and citation
This page is a plain-English summary written for policyholders. The controlling language is the official text of 11 NYCRR Part 25, and your own policy governs your claim. Nothing here is legal advice.
Read 11 NYCRR § 25.7 (official text)Public Adjuster Rules & Fee Cap: Frequently Asked Questions
Common questions New York policyholders ask about this rule.