--- title: "Why Only Licensed Public Adjusters Can Legally Adjust Insurance Claims" slug: "adjusting-pitfalls" description: "Beware of Unlicensed “Help” That Could Jeopardize Your Settlement When disaster strikes and the insurance process begins, many homeowners understandably feel overwhelmed—and turn to anyone who offers help. Contractors, restoration companies, or mitigation vendors may offer to \"handle your insurance claim\" as a bundled service. They may even say they can negotiate your settlement to save you time or money. But here’s the truth: only licensed public insurance adjusters (PAs) or attorneys are legally permitted to represent policyholders in adjusting insurance claims. Anyone else offering to negotiate your claim, speak on your behalf with your insurer, or manage your insurance recovery is breaking the law. Beware of Unlicensed “Help” That Could Jeopardize Your Settlement When disaster strikes and the insurance process begins, many homeowners understandably feel overwhelmed—and turn to anyone who offers help. Contractors, restoration companies, or mitigation vendors may offer to \"handle your insurance claim\" as a bundled service. They may even say they can negotiate your settlement to save you time or money. But here’s the truth: only licensed public insurance adjusters (PAs) or attorneys are legally permitted to represent policyholders in adjusting insurance claims. Anyone else offering to negotiate your claim, speak on your behalf with your insurer, or manage your insurance recovery is breaking the law." updated: 2025-11-21T21:18:24Z published: 2025-11-21T21:18:24Z canonical: "rallybacks.loti.com/adjusting-pitfalls" --- > ## Documentation Index > Fetch the complete documentation index at: https://rallybacks.loti.com/llms.txt > Use this file to discover all available pages before exploring further. # Adjusting Pitfalls ### W**hy Only Licensed Public Adjusters Can Legally Adjust Insurance Claims** ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Article - Licensed Adjusters.webp) *Beware of Unlicensed “Help” That Could Jeopardize Your Settlement* When disaster strikes and the insurance process begins, many homeowners understandably feel overwhelmed—and turn to anyone who offers help. Contractors, restoration companies, or mitigation vendors may offer to "handle your insurance claim" as a bundled service. They may even say they can negotiate your settlement to save you time or money. But here’s the truth: **only licensed public insurance adjusters (PAs)** or attorneys are legally permitted to represent policyholders in adjusting insurance claims. Anyone else offering to negotiate your claim, speak on your behalf with your insurer, or manage your insurance recovery is breaking the law. ### What Does “Adjusting a Claim” Actually Mean? Adjusting a claim involves: - Interpreting Policy language and coverage - Preparing and submitting estimates - Negotiating claim values - Disputing denied items or low offers - Communicating directly with your insurer about your legal rights to payment Only someone with the proper license and credentials is allowed to do this on your behalf. ### Contractors and Restoration Companies Are *Not* Adjusters While a Contractor or mitigation Vendor may play a valuable role in estimating damage or executing repairs, they cannot: - Negotiate with your insurer - Submit a claim on your behalf - Interpret your policy - Represent you in a dispute Doing so is considered **unauthorized public adjusting**, and in most states—including California—it’s ILLEGAL. Even worse, most contractors and vendors don’t understand: - Coverage buckets and how policies separate funds for different categories (Dwelling, ALE, Contents, etc.) - How Depreciation and recoverable payments work - Deadlines and documentation requirements - Complex issues like code upgrades, policy exclusions, or Appraisal clauses Trying to “save money” by having an unlicensed person adjust your claim may result in: - Underpaid claims - Lost reimbursement opportunities - Delayed payments - Legal complications ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Tests.png) ### What It Takes to Become a Licensed Public Adjuster Becoming a licensed PA is not easy—and for good reason. It requires a detailed understanding of insurance law, building science, construction costs, policy structures, and ethics. In California, for example, a public insurance adjuster must: - Complete **20 hours of pre-licensing education** - Pass a **state-administered exam** - Accrue **two years of full-time experience** (or 5,000 hours of practical training) - Carry a **surety bond** - Complete **24 hours of continuing education every two years**, including 3 hours of ethics training These requirements exist to protect homeowners. They ensure public adjusters have the knowledge and accountability needed to advocate effectively and legally. ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - PA License.png) ### How to Spot Red Flags Be cautious of any contractor or vendor who: - Offers to “handle” your claim in exchange for work - Speaks to your insurer about payments on your behalf - Tells you not to involve a public adjuster or attorney - Bundles insurance help into a construction or Remediation contract Always ask: - Are you licensed as a public adjuster in this state? - Can I see your license and bond information? - Are you being paid directly by the insurance company? If they can’t answer, walk away. ### Wrap-Up Your insurance claim is a legal and financial negotiation. You deserve representation from someone who is qualified, licensed, and working solely in your best interest. At Loti, our **licensed public adjusters** meet all state requirements and specialize in large, complex residential claims. We help homeowners navigate insurance policies, prepare complete documentation, and negotiate full recoveries—legally and professionally. If you’re unsure who should be advocating for your claim, start by asking: are they licensed? This is the legal contract between you (the insured) and your insurance company (the insurer). The primary purpose of this contract is to make your accidental loss financially palatable in exchange for a pre-determined fee (your premium). A person or company responsible for construction work. A person or company offering something for sale. Your personal property and associated items generally lose value over time due to age, use and general wear and tear. Depreciation is the percentage of value lost since you first purchased the item. Some items depreciate faster than others - such as TVs - and other items don’t depreciate at all - like antiques. We calculate this percentage automatically for you based on typical categories and use, but this value can be easily edited to account for unique items and situations. A professional assessment of a property's value. These are used to calculate the cost of repairing or replacing your property after an event. Also known as a private adjuster, public adjusters are hired by you as a homeowner to represent your own interests regarding your claims. These can range from individuals to large firms and vary in cost but usually command 10-20% of your total claim. The process of cleaning up environmental contaminants from a site.