In Texas, public adjusters are regulated by the Texas Department of Insurance (TDI). Chapter 4102 of the Texas Insurance Code requires anyone who acts as a public adjuster in this state to hold a TDI license, and it sets the rules on contracts, fees, conflicts of interest and claim checks. There is no federal regulator; each state runs its own system, so a license from another state does not let someone adjust your Texas claim unless they also hold a Texas license.
That matters because a public adjuster handles your claim, your policy and, indirectly, your money. The license is your main protection, and it only works if you check it.
What Chapter 4102 controls
Chapter 4102 is short, and most of it exists to protect the homeowner or business owner who hires a public adjuster. The parts you are most likely to run into:
| Rule | What it means for you | Section |
|---|---|---|
| License required | Nobody may act as a public adjuster in Texas without a TDI license. | Ch. 4102 |
| Approved contract | The contract must be on a TDI-approved form, state "WE REPRESENT THE INSURED ONLY," and let you cancel within 72 hours of signing. | §4102.103 |
| Fee cap | The total fee cannot exceed 10% of the settlement. On a total fire loss where the insurer pays or commits in writing to pay policy limits within 72 hours of the claim being reported, a percentage fee is not allowed. | §4102.104 |
| Claim checks | You must be a payee on every check, and the adjuster may never sign or endorse a check for you. | §4102.104 |
| No repair stake | The adjuster may not take part in repairing your property or take money from repair or salvage firms on your claim. | §4102.158 |
| Contractors | A contractor may not act as a public adjuster on property they are or may be repairing. | §4102.163 |
We cover the contractor rules in more depth in can a public adjuster work for a contractor, and the fee rules in the truth about public adjuster fees.
How a public adjuster gets licensed in Texas
The path to a Texas public adjuster license runs through TDI. In general terms, an applicant has to:
- Apply to TDI. The application goes through TDI's agent and adjuster licensing process, which includes a background review.
- Pass the licensing exam. Texas requires a state exam covering adjusting practice and the Texas laws that govern public adjusters.
- Show financial responsibility. Texas requires public adjusters to maintain proof of financial responsibility, such as a bond, so there is recourse if an adjuster mishandles a client's claim.
- Use the approved contract. Licensed adjusters must contract with clients only on a TDI-approved form.
- Keep the license current. Licenses must be renewed, and renewal requires continuing education.
The exact exam content, continuing education hours and financial responsibility amounts are set by TDI and can change, so check TDI's licensing pages for the current requirements rather than relying on a third-party summary.
Tip: Insurance company adjusters, including the independent adjusters insurers hire after big storms, are licensed under different rules. A Texas adjuster license on its own does not make someone a public adjuster. Make sure the license type says public adjuster.
How to verify a public adjuster's license
Checking takes a couple of minutes, and you should do it before you sign anything.
- Get the full name and license number. A licensed public adjuster will give you both without hesitation. Ours: Joseph Dittman, Texas Public Adjuster License #3356839.
- Go to TDI's licensing pages. Start at TDI's agent and adjuster licensing page and use the license lookup to search by name or number.
- Check the license type and status. It should be a public adjuster license, and it should be active, not expired or revoked.
- Match the name. The person or firm on the contract should match the license holder. A salesperson for a firm is not automatically licensed just because the firm employs a licensed adjuster.
- Read the contract. Look for "WE REPRESENT THE INSURED ONLY," the 72-hour cancellation right, and a fee at or below 10%.
Red flags that someone is not playing by the rules
- They will not give you a license number, or it does not appear on TDI's lookup
- They are also offering to do the repairs, or "work with" a roofer who will pay them
- The contract has no 72-hour cancellation language or charges more than 10%
- They ask you to let them sign or deposit claim checks
- They want money upfront before any claim payment
- They promise a specific settlement amount before they have seen your policy or the damage
Why regulation matters on your claim
Licensing is not just paperwork. It changes what you can do if things go wrong.
- You have a regulator to call. TDI can investigate a licensed adjuster and take disciplinary action, up to revoking the license. An unlicensed operator is outside that system entirely.
- Your money is protected by rule, not trust. Because you must be on every check and the adjuster cannot endorse for you, nobody can quietly cash your claim payment.
- You can walk away. The 72-hour cancellation right means a high-pressure signing at your kitchen table is not final.
- The fee has a ceiling. The 10% cap applies to every licensed public adjuster in Texas.
The same department also regulates your insurance company, which matters for a different reason: TDI enforces the Chapter 542 prompt-payment deadlines your insurer must meet. If your claim is stalling, read how long an insurance adjuster has to contact you in Texas.
Who else touches your claim, and who regulates them
Homeowners often meet three or four people on one claim and assume they all answer to the same rules. They do not.
| Who | Works for | Overseen by |
|---|---|---|
| Staff adjuster | Your insurance company | TDI, along with the insurer itself |
| Independent adjuster | Your insurance company, through an adjusting firm it hires | TDI |
| Public adjuster | You | TDI, under Chapter 4102 |
| Attorney | You | The State Bar of Texas |
| Contractor or roofer | You, for the repairs | Not licensed by TDI to adjust claims; barred from acting as your adjuster by §4102.163 |
The practical point: only a public adjuster or an attorney is on your side of the claim. Everyone the insurance company sends, however helpful, is evaluating the loss for the insurer. For a closer comparison of the adjuster types, see public adjuster vs. independent adjuster.
How to file a complaint with TDI
You can complain to TDI about a public adjuster, an insurance company adjuster, or an insurer. The process is the same in outline:
- Gather the paper. Your contract, the adjuster's name and license number, your claim number, and any emails, texts or letters that show the problem.
- Write a short timeline. Dates, who said what, and what you want fixed. Keep it factual.
- Submit it to TDI. TDI accepts consumer complaints online through its website at tdi.texas.gov; look for the consumer complaint section.
- Keep copies. Save the confirmation and any complaint number TDI gives you, and respond promptly if TDI asks for more information.
A TDI complaint can prompt an insurer to respond or a licensee to be investigated, but TDI is not your representative, and a complaint is not designed to settle how much your claim is worth. If you have a coverage dispute, a public adjuster, the appraisal clause or an attorney is usually the path to resolving it.
Not sure you need a public adjuster at all? Try our short self-assessment, or read what a public adjuster does.
Frequently asked questions
Do public adjusters need a license in Texas?
Yes. Chapter 4102 of the Texas Insurance Code requires anyone acting as a public adjuster in Texas to be licensed by the Texas Department of Insurance.
How do I look up a public adjuster license in Texas?
Use the license lookup on TDI's agent and adjuster licensing pages. Search by name or license number and confirm the license type is public adjuster and the status is active.
What does it take to get a public adjuster license in Texas?
An application to TDI, passing the state licensing exam, proof of financial responsibility such as a bond, and continuing education to renew. TDI sets the current specifics.
Can a public adjuster licensed in another state handle my Texas claim?
Only if they also hold a Texas public adjuster license. Regulation is state by state, so check TDI's lookup.
Where do I complain about a public adjuster or insurance company in Texas?
File a consumer complaint with the Texas Department of Insurance through tdi.texas.gov. Include your contract, claim number and a dated timeline of what happened.
Joseph inspects, documents and negotiates residential and commercial property claims across Texas, working only for policyholders.
