Can a Public Adjuster Be a Contractor in Texas?

January 17, 2025 4:33 am Published by   In Texas, the connection between public adjusters and contractors is a significant topic, particularly for individuals dealing with property damage claims. Numerous property owners in San Antonio are looking for guidance on whether a public adjuster can simultaneously serve as a contractor and manage both roles during the claims process. This blog will delve into the legal and practical aspects for public adjusters and contractors in Texas, emphasizing the regulations that oversee these professions.  

What Is a Public Adjuster?

  bearded man in suit smiling at camera - Mike Acerra A public adjuster is an experienced professional with an insurance license to represent a policyholder on insurance claims. This professional primarily deals with advocacy and ensures the fair settlement of an insurance claim to the policyholder. They take into consideration all the policy details, damages assessment, and then negotiate with insurers on behalf of their clients.

Can a Public Adjuster be a Contractor in Texas?

Public adjusters cannot serve as contractors on the same claim for which they are serving as an adjuster according to the Texas Department of Insurance. The state prevents conflicts of interest through this prohibition. Under Section 4102.158 of the Texas Insurance Code, a public adjuster may not take part in any repairs, reconstruction, or other services associated with the claim that they are administering However, a public adjuster can own a contracting business or be a contractor on unrelated claims. The point is that there cannot be any conflict between the two roles for a single claim. This separation would protect the interest of the policyholder and ensure that the advice of the public adjuster remains neutral.

Why is this separation important?

This prohibition on acting as both a public adjuster and contractor is designed to maintain transparency and trust. If a public adjuster were permitted to make repairs, there may be a motive to inflate damage estimates for personal gain. By separating these roles, Texas law ensures:
  • Fair Settlements: Policyholders can trust their public adjuster’s assessment is accurate and not influenced by potential repair profits.
  • Ethical Practices: Public adjusters and contractors only serve in their designated capacities.
  • Consumer Protection: The likelihood of encountering fraudulent practices or conflict of interest is very low.

Selecting a Public Adjuster in San Antonio, Texas

When selecting a public adjuster in San Antonio, it’s crucial to ensure they adhere to Texas regulations. Look for professionals with a valid license and a strong reputation for ethical practices. A reliable public adjuster will:
  • Clearly explain their role and limitations.
  • Provide a detailed analysis of your insurance policy.
  • Offer transparent communication throughout the claims process.
If your property has been damaged and you are thinking of hiring a contractor to fix it, make sure they are not the same public adjuster handling your claim. This way, you will be better placed to deal with the situation without legal or ethical implications.

Conclusion

In Texas, including San Antonio, public adjusters and contractors have different roles in the insurance claims process. A public adjuster can claim that a settlement is fair, but a person cannot be a contractor for a given claim while being a public adjuster at the same time. Therefore, having an understanding of these roles and respecting them will ensure that policyholders receive fair treatment and good quality in their claims handling. If you’re looking for a reliable public adjuster in San Antonio, Texas, opt for one that values transparency and professionalism. This choice will help ensure that the insurance claims process is easier and more beneficial for you as a property owner.

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This post was written by Trishala Tiwari

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