FAQs addressed: Insurance Adjuster vs. Contractor

Nobody can foresee whether or when they may sustain property damage as a result of an unexpected, unavoidable event. But when it occurs, it could be challenging to distinguish between the participants and their respective roles.

It’s common for people to wonder what distinguishes an insurance adjuster’s duties from those of a contractor.
We are pleased to share some frequently asked questions with you and our responses as public adjusters with our many years of experience.

We take into account laws, rules, and regulations where necessary.

Contractor insurance adjusters versus insurance adjusters
Your insurance provider assigns an insurance adjuster to look into and evaluate your claim when you make one for a covered incident.

There are normally two types of insurance adjusters.

Firstly, the firm or “Staff” of an insurance company’s full-time employee is known as an adjuster.
Secondly, the independent Adjuster: A contracted agent who represents an insurance provider. Multiple insurance firms may hire an independent insurance adjuster on a contract basis.

By assisting the insurer in limiting their exposure, insurance adjusters act in the insurer’s best interests.
They should not be mistaken for public adjusters, who represent policyholders’ interests.
For further details, see our page on public vs. independent adjusters.
Insurance adjusters must hold a license issued by the Department of Insurance


A contractor is a party that has the right credentials to fix your house following an insured occurrence. Typically, you have the option of choosing a contractor that your insurance provider recommends or working with someone else. Regardless, the contractor “technically” represents you, not your insurance provider, as the client.

Questions and Answers

Do insurance companies employ contractors?

The quick response is “no”

Usually, insurance companies maintain a preferred contractor list. It’s not an in-house contractor, even though your insurer could advise you to select a preferred contractor they are familiar with. You have the option of hiring a chosen contractor or making your own.

Even though they are employed by you, not your insurer, preferred insurance contractors or vendors frequently act in the insurer’s best interest.

Can I use the insurance adjuster I’ve chosen as my contractor?

The quick response is “no”
Even an independent insurance adjuster may not perform the duties of both an adjuster and a contractor due to a potential conflict of interest. They would become the jury and the judge.

In addition to the fact that no insurance company would permit it, it is also against the law.

I need a contractor to aid me with my insurance claim; is that possible?

The quick response is “no”

Contractors are crucial to the maintenance of your property. They cannot, however, handle, file, or assist in the settlement of claims on your behalf.

It would be considered an unauthorized public adjustment practice.

What if my contractor quotes are more expensive than the insurance adjuster’s estimate?

In theory, you ought to get a settlement deal that will pay for repairing your house to the way it was before the damage. Be aware that certain aspects, like the state of your roof, for instance, may come into play if your roof is leaking.

Computer programs are frequently used by insurance adjusters to calculate the cost of repairs. In some circumstances, their cost estimate might no longer be correct as a result of things like growing inflation and a material shortage.

Presenting the insurance adjuster with cost estimates from contractors is the best course of action. If you believe the adjuster’s estimate will leave you with a financial burden, don’t be afraid to ask them to evaluate it.

Can I use the claims adjuster my insurance company assigned to help resolve my claim?

Your insurance company’s appointed insurance claims adjusters want you to accept their initial settlement proposal. You won’t receive a better settlement offer with the assistance of an insurance adjuster. They act in your insurance company’s best interests and won’t leave money on the table.

The best course of action if you need assistance securing a better settlement offer is to engage public adjusters. A public adjuster represents YOUR interests, not those of your insurance company.

That Brings Us To The End

It can take a lot of time and be difficult to deal with an insurance adjuster and/or contractor(s), especially if you receive contradicting information.

It’s common for people to wonder what distinguishes an insurance adjuster’s duties from those of a contractor. We hope that after reading this post you have a clearer knowledge of the difference between contractors and insurance adjusters.
We, at McKinley Public Adjuster, strongly advise using a public adjuster to handle your homeowner’s insurance claim if it is significant or difficult.

A certified public adjuster can engage with the insurance adjuster on your behalf and help you find a contractor to handle your insurance claim. Additionally, they assist you in obtaining the best settlement offer to which your home or business insurance policy entitles you.