What a Florida Public Adjuster Contract Must Include

Before the contract: the DFS disclosure form

The adjuster is at your kitchen table with a stack of papers. The first one you sign should not be the contract. Before you sign a contract, a Florida public adjuster must give you a separate disclosure document on a form adopted by DFS, for you to sign (s. 626.8796(6)). The current version is Form DFS-H1-1982, the Claim Process Disclosure Form (Fla. Admin. Code R. 69B-220.051(7)).

The form explains the three kinds of adjusters you may meet, that a public adjuster is not an employee or representative of your insurer, that you are not required to hire one, and that you may talk directly with your insurer, its adjuster or anyone else about your claim. It also says the fee is your responsibility and restates your right to cancel after a declared emergency. The adjuster may add only a name and contact details. None of the information may be changed (R. 69B-220.051(7)(b)).

What every contract must show

Section 626.8796 and Rule 69B-220.051(4) set out what goes in the contract. DFS also publishes a plain-language Public Adjuster Code of Ethics and Contract Checklist. The contract must:

• Be in writing, in at least 12-point type, and titled “Public Adjuster Contract.”
• Print the fraud statement from s. 626.8796(1) in at least 18-point bold type before your signature line.
• Give the public adjuster’s full name, permanent business address, phone, e-mail and license number, and the firm’s full name and license number.
• Give your full name, street address, phone and e-mail, a brief description of the loss, and the loss address if it differs from yours.
• List your insurance company and policy number, if available.
• State the fee percentage in at least 18-point bold type before your signature, plus all methods of compensation and any costs to be repaid from the proceeds.
• State the type of claim: emergency, nonemergency or supplemental.
• Carry your initials on each page you do not sign, the signatures of the public adjuster and all named insureds, and the signature date.

A licensed public adjuster must sign. An apprentice may not execute the contract (R. 69B-220.051(5)).

Contract clause checklist

Fee terms the law limits

On residential and condo unit owner policies, s. 626.854 sets limits on what the fee can be and what it can touch (s. 626.854(19)). The caps are ceilings. Your contract can set a lower rate.

• Up to 10 percent for claims based on an event under a Governor’s state of emergency declaration, for claims made during the year after the declaration, and up to 20 percent otherwise (s. 626.854(11)(b)).
• Up to 1 percent on any coverage part where the insurer pays, or agrees in writing to pay, the full policy limit for that part within 14 days after the loss or within 10 days after the contract is signed, whichever is later (s. 626.854(11)(b)3).
• No fee on money the insurer paid or agreed in writing to pay before you signed (s. 626.854(11)(b)4.).
• No fee on the deductible (s. 626.854(11)(c)).
• On a reopened or supplemental claim, a fee only on new payments obtained after the contract, capped at 20 percent (s. 626.854(11)(a)).
• No fee on additional living expenses unless you sign a separate agreement for it (s. 626.854(11)(d)).
• No higher rate just because the claim goes to litigation (s. 626.854(11)(e)).

Outside services such as an engineer may be charged to you only if you agree in writing after signing the adjusting contract (s. 626.854(6)(b)). For worked explanations, read what a public adjuster costs.

The cancellation notice and the 60-day estimate

Right before your signature, the contract must print a cancellation notice in at least 18-point bold type (s. 626.854(7)). It says you may cancel for any reason, without penalty, within 10 days after the date of the contract. After a declared state of emergency, the window is 30 days after the date of loss or 10 days after signing, whichever is longer. The notice also says where and how to send a cancellation: in writing, by certified mail, return receipt requested, or another mailing method that gives proof, to the address in the contract.

The adjuster must also give you an itemized, per-unit written estimate within 60 days of the contract (s. 626.854(12)). If it does not arrive, and the delay is not caused by factors beyond the adjuster’s control, you may cancel (s. 626.854(12)(b); s. 626.8796(4)). The cancellation guide explains each step.

Clauses that do not belong in the contract

Some terms are off limits. If you see one of these, ask about it before you sign:

• Authority for the adjuster to choose who repairs your property (s. 626.854(18); R. 69B-220.201(4)(b)).
• A share of any salvage, unless you sign a separate affidavit (s. 626.854(17)).
• A fee on payments made before the contract, or on your deductible (s. 626.854(11)).
• Language that keeps you from talking privately with your insurer (R. 69B-220.201(4)(a)).
• Permission to accept a settlement without your approval. A public adjuster may not accept a settlement unless you approve its terms (R. 69B-220.051(6)).
• Any role for the adjuster in repairing the property (s. 626.8795).

Questions to ask the adjuster about each clause are in the 12 questions to ask before hiring a public adjuster.

After you sign

You must get an unaltered copy of the signed contract at signing. Your insurer must get one within 7 days (s. 626.8796(2)). The adjuster may not be paid for services provided before you receive your copy or before it goes to the insurer (s. 626.8796(3)). Keep the contract and the disclosure form together with your policy.

Florida says a contract that does not comply with s. 626.8796 is invalid and unenforceable (s. 626.8796(7)). Whether a particular contract meets that standard is a legal question, and that is where a Florida attorney’s role starts. A public adjuster may not give legal advice (s. 626.854(3)).

To see what the work looks like once a contract is signed, read our process. If you would like a licensed adjuster to walk through your situation first, Adjusterman offers a free claim review.