Public adjusters Act 77 of 2026
House Bill 1972 Printer's No. 3550
Pennsylvania caps public adjuster fees at 20% of a claim, or 10% after a declared disaster, starting April 2027
Act 77 of 2026 caps public adjuster fees at 10% of a disaster claim and 20% of other claims, and bars fees on money offered before hiring. Governor Josh Shapiro signed it on October 22.
On a $40,000 claim the fee can reach $8,000, and $4,000 after a declared disaster
A public adjuster in Pennsylvania will be able to take no more than 20% of an ordinary insurance settlement, and no more than 10% when the loss comes from a declared disaster, under Act 77 of 2026. Governor Josh Shapiro signed the law, House Bill 1972, on October 22, according to the General Assembly's bill history. A public adjuster is a licensed claims handler a homeowner hires, usually for a share of the payout, to prepare and negotiate a claim against the homeowner's own insurer.
The act takes effect 180 days after signing, which by the calendar is April 20, 2027. It passed the House 197-0 in February and the Senate 50-0 on October 19, and the House agreed to the Senate's changes 203-0 the next day.
For a roof claim after a hailstorm or a windstorm, the caps put a ceiling on what comes out of the check. The 1983 Public Adjuster Licensing Law set no limit on fees, according to a release from the office of Rep. Jeff Olsommer, a co-sponsor.
| Settlement | Other claims (20%) | Declared disaster (10%) |
|---|---|---|
| $5,000 | $1,000 | $500 |
| $10,000 | $2,000 | $1,000 |
| $20,000 | $4,000 | $2,000 |
| $40,000 | $8,000 | $4,000 |
Which cap appliesA declared disaster cuts the cap to 10%
The 10% cap covers a "catastrophic claim settlement," a settlement for a claim that comes from a catastrophic event. The act defines that as one of the events below. Every other claim falls under the 20% cap.
10%
Catastrophic claim
- A major disaster declared by the President
- A disaster emergency proclaimed by the Governor
- An incident that causes widespread harm, such as destroyed critical infrastructure or demand that overwhelms emergency services
20%
Every other claim
- A thunderstorm that tears shingles off a few roofs in Conshohocken, with no declaration, would be an ordinary claim
The act defines a settlement as the money the insurer pays on the claim, minus what it pays for additional living expenses, which is the policy's coverage for a hotel or rent while the house cannot be lived in. Two more limits shape the fee. A public adjuster may not take any fee, retainer or deposit before the claim settles. The fee also may not come from any part of the settlement the insurer offered or paid before the adjuster was hired. A contract may not let the adjuster take the whole fee out of the first check, so the fee comes as a percentage of each payment.
A worked exampleAfter an $8,000 offer, the fee on a $20,000 settlement tops out at $2,400
The figures below are round example numbers that show how the rules combine. The insurer offers $8,000 for a damaged roof. The homeowner then hires a public adjuster, and the claim settles at $20,000.
The fee can come only from the $12,000 above the first offer
The fee can come only from the $12,000 above the earlier offer, so at the 20% cap the most the adjuster can charge is $2,400, and the homeowner keeps $17,600. If the same storm had been a declared disaster, the 10% cap would hold the fee to $1,200. A contract can set a lower percentage than the cap.
| Step | Amount |
|---|---|
| Insurer's offer before the adjuster was hired | $8,000 |
| Final settlement after the adjuster's work | $20,000 |
| Part of the settlement the fee can come from | $12,000 |
| Most the adjuster can charge at the 20% cap | $2,400 |
| Homeowner keeps from the settlement | $17,600 |
| Most the adjuster can charge after a declared disaster at the 10% cap | $1,200 |
Before you signThe separate disclosure has 8 required parts
The act adds rules a homeowner will see before and after signing. Before the contract, the adjuster must hand over a separate disclosure that explains the three kinds of adjuster. A company adjuster works for the insurer, an independent adjuster is hired by the insurer on contract, and a public adjuster works for the homeowner and charges the homeowner. The disclosure must also give the adjuster's license number and say how to complain to the Insurance Department.
What the separate disclosure must contain before a public adjuster contract is signed
- The policy obliges the insured to present the claim to the insurer
- The three kinds of adjuster (company, independent and public) and who pays each
- The insured may hire a public adjuster but does not have to
- The insured may talk directly with their own lawyer, the insurer, its adjuster, its lawyer or anyone else about the settlement
- The public adjuster does not represent and is not employed by the insurer
- The insured pays the public adjuster's fee
- The adjuster's license number and a link to the Insurance Department's site to check the license
- How to file a complaint with the Insurance Department, with its website, email and phone number
After you signA catastrophic claim gets 10 business days to cancel
The time to cancel grows. The old contract disclosure gave three calendar days. The new act gives 10 business days for a catastrophic claim and three business days for other claims. When a contract on an ordinary claim is signed within 48 hours of the loss after an in-person pitch at the scene, the window is five business days.
The window to cancel runs from 3 to 10 business days by type of claim
Anything the homeowner paid must come back within 15 business days of the cancellation notice, though the homeowner owes the reasonable value of work done and reasonable emergency expenses.
What else changesThe surety bond doubles to $40,000
Several changes touch the roofing side of a claim. A public adjuster may no longer hold any financial interest in the claim beyond the contract fee, and that now covers the adjuster's employees, relatives and affiliates. The old law allowed an interest that was disclosed in writing. An adjuster may not refer a homeowner to a repair company it has a stake in or that pays it for the referral, and may not contract to repair the property it is adjusting. It may not offer to pay the deductible or say the deductible will be waived, and it may not call the property damaged before an inspection. The Senate fiscal note says a violation of the financial interest rule counts as insurance fraud, a felony.
Insurers get a duty too. When a public adjuster sends the insurer its signed notice of representation, the insurer must check the license with the Insurance Department, report an unlicensed adjuster and withhold payment from that person. The department may send the matter to the Attorney General, including under the Home Improvement Consumer Protection Act. The act also says a property policy may limit who can take over the homeowner's rights under it, and may bar handing them to a property repair contractor.
Repair contractors "may not subvert the public adjuster licensing requirements of the act through the acquisition of a power of attorney from the named insured."
The required surety bond, money a bonding company stands behind if the adjuster mishandles a client's funds, doubles from $20,000 to $40,000.
| Provision | Before Act 77 | Under Act 77 |
|---|---|---|
| Fee limit | Not in the act | 10% of a catastrophic claim settlement and 20% of other settlements |
| Fee on money offered before the adjuster was hired | Not in the act | Barred |
| Fee or deposit before the claim settles | Not in the act | Barred |
| Surety bond | $20,000 | $40,000 |
| Time to cancel the contract | 3 calendar days | 3, 5 or 10 business days by type of claim |
| Financial interest in the claim | Allowed with a written disclosure | Barred for the adjuster and the adjuster's employees, relatives and affiliates |
| Pay from repair or salvage businesses | Allowed if disclosed and agreed in the contract | Barred |
| Contract to repair the damaged property | Barred until the insurer pays or an award is entered | Barred for any property the adjuster was hired to adjust |
| Offer to pay or waive the deductible | Not in the act | Barred |
| Separate disclosure before signing | Not in the act | Required |
| Insurer checks the adjuster's license | Not in the act | Required; no payment to an unlicensed adjuster |
What to do with a roof claimCheck the fee line against 20%, or 10% after a declared disaster
You never have to hire a public adjuster, and the new disclosure has to say so. If someone offers to handle your roof claim, ask for the license number and check it with the Insurance Department before you sign, and call the department's consumer line at 1-866-722-6675 with questions or complaints.
- Look at the fee line. A percentage above 20%, or above 10% after a declared disaster, will be over the cap once the act takes effect in April.
- Ask whether the fee applies only to money above any offer your insurer has already made.
- Be wary of anyone who offers to cover your deductible, or who adjusts your claim and also wants the roofing job.
The roofer who does the work still needs a home improvement contract that meets state law and a borough permit. See the guides to storm damage and insurance claims, what a roofing contract must include and checking a roofer's registration. Whether hiring a public adjuster makes sense for your claim depends on your policy and your loss, so ask your insurance agent or a lawyer.
CaveatsThe 180-day count lands on April 20, 2027
The act says only that it takes effect in 180 days. April 20, 2027 counts from the October 22 approval date in the legislature's record, while the Insurance Department's release is dated October 23, so check the department's site for the date it uses. The act does not address contracts signed before it takes effect. The department may issue guidance on when a claim counts as catastrophic, and the third part of that definition leaves room for judgment. This article follows printer's number 3550, the text the legislature lists for Act 77, checked October 29, 2026.