After struggling with our insurance company, we hired a public adjuster firm who charges a 10% commission on funds they recover from the insurance company. Prior to signing a contract with them, we had received 50% of our dwelling and 25% of our loss of contents limits. When we first met with their representative, I asked if they were entitled to their 10% commission of the funds that we had previously received from our insurance company, and he said "yes". I've subsequently read California Department of Insurance information that states public adjusters are not entitled to monies already received by the insured from their insurer. Since what I was told by the agent representing the public adjuster firm contradicts what I have read, my question is: "Is it illegal or against California regulations that a public adjuster get a percentage of money their client had already received, prior to signing the contract with the public adjuster firm?"

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.