5 Ethics Disclosure Musts When Working With a Public Adjuster

5 Ethics Disclosure Musts When Working With a Public Adjuster

Roofing contractors often meet public adjusters after hail, wind, fire, water, or hurricane losses. The policyholder may ask the roofer to inspect damage, price repairs, meet the carrier adjuster, or explain construction details. Those tasks can be legitimate contractor work. The risk starts when the contractor appears to negotiate coverage, represent the insured on the claim, steer the insured to a public adjuster without disclosure, or combine repair work with adjusting activity in a state that separates those roles.

Use a state-specific legal review before adopting any claim workflow. Public-adjuster law is state based, and disaster rules can change quickly. RoofPredict can support the operating side by keeping inspection notes, photos, estimates, crew assignments, and customer communications organized, but the company still needs licensed insurance, legal, and compliance review for public-adjuster questions: https://roofpredict.com/

The five disclosure musts below are a practical control framework for roofing companies. They do not authorize a contractor to adjust claims, interpret coverage, waive deductibles, or give legal advice.

Must 1: Verify the Public Adjuster's Role and License Before Claim Coordination

Start every public-adjuster relationship with identity, license, and role verification. The National Association of Insurance Commissioners' Public Adjuster Licensing Model Act defines public adjusting around compensated work for an insured in first-party property claims, including negotiating or helping effect the settlement of a claim, advertising as a public adjuster, or indirectly soliciting and advising insureds about covered losses: https://content.naic.org/sites/default/files/model-law-228.pdf

That definition matters to roofers because estimating roof repairs is different from representing a policyholder in coverage or settlement discussions. A contractor can usually provide damage observations, code items, product specifications, labor assumptions, and a written repair estimate. A contractor should not let marketing language, sales scripts, or meeting behavior suggest that the company is the policyholder's public adjuster unless the company is licensed and legally allowed to serve in that role.

The Texas Department of Insurance gives a direct warning for roofers: Texas does not allow a roofer or contractor to act as a public insurance adjuster on an insurance claim if the roofer is also doing the work, and the roofer cannot advertise that arrangement either: https://www.tdi.texas.gov/consumer/storms/roofing-and-insurance-know-the-law.html

TDI's agent and adjuster lookup page is a useful model for the first control: search by name or license number and keep a screenshot or PDF of the license check in the job file: https://www.tdi.texas.gov/agent/agent-lookup.html

For multi-state operators, do not rely on a Texas lookup alone. Florida maintains a Department of Financial Services license search that includes public adjuster and public adjuster apprentice categories: https://licenseesearch.fldfs.com/

California also provides a license status inquiry for agents, brokers, adjusters, business entities, and other licensees: https://www.insurance.ca.gov/0200-industry/0008-check-license-status/

Build a simple intake rule: no public-adjuster coordination goes into production until the job file identifies who the adjuster represents, the adjuster's license number, the state where the loss occurred, the policyholder's authorization, and the exact contractor contact person. If the person is not licensed, or if the license status is unclear, pause claim-facing coordination and escalate.

Must 2: Disclose That the Roofer Is a Contractor, Not the Policyholder's Adjuster

The policyholder should never have to guess which person is wearing which hat. If the roofing company is only inspecting and estimating construction work, say that in writing. If the public adjuster represents the insured, say that separately. If the insurer's adjuster represents the insurer, keep that distinction clear in meeting notes and emails.

The NAIC consumer outreach notice explains the basic roles: a public adjuster works for the policyholder, while company and independent adjusters are connected to the insurer's claim process: https://content.naic.org/sites/default/files/inline-files/legal_bulletin_pub_adjuster_consumer_outreach_notice.pdf

That distinction should appear in the roofer's documents. A safe contractor note can say:

1. The roofing company is providing construction observations, photographs, measurements, product information, and a repair or replacement estimate.
2. The roofing company is not interpreting policy coverage.
3. The roofing company is not negotiating claim settlement for the insured.
4. The policyholder may speak directly with the insurer, the insurer's adjuster, counsel, or a licensed public adjuster.
5. The public adjuster, if retained, is separately contracted by the insured.

TDI's 2021 bulletin makes the boundary operational. It says licensed adjusters may not adjust roofing losses for an insurer if the adjuster is a roofing contractor, sells roofing services or products, or controls a roofing-related business. It also says a roofing contractor may not act as an adjuster or advertise to adjust claims for property where the contractor is providing or may provide roofing services. The same bulletin clarifies that contractors are not prohibited from providing estimates or discussing those estimates and other technical information with an insurer or its adjuster: https://www.tdi.texas.gov/bulletins/2021/B-0006-21.html

That is the lane to document. Keep construction discussions construction-focused. Use phrases such as "our roof estimate includes these observed conditions" and avoid phrases such as "we represent you in the claim," "we will settle this with the carrier," or "we recover every dollar owed." Train sales teams and supplement teams on the difference, because claim meetings often blur the line when everyone is standing at the same damaged property.

Must 3: Put Fees, Referrals, Ownership Ties, and Recommendations in Writing

Public-adjuster ethics problems often begin with undisclosed financial relationships. A roofer may refer a customer to a public adjuster. A public adjuster may recommend a roofing contractor. A salesperson may have a family or business relationship with the adjuster. A contractor may receive leads from an adjuster after prior jobs. Those facts may be material to a policyholder's decision, even when no one intends to mislead.

The NAIC model act treats compensation and claim-process disclosure as central contract controls. It requires a separate disclosure document before signing that explains the claim process, the different adjuster roles, that hiring a public adjuster is optional, that the public adjuster is not the insurer's representative, and that the public adjuster's fee is the insured's obligation rather than the insurer's obligation: https://content.naic.org/sites/default/files/model-law-228.pdf

Florida's public-adjuster contract statute gives a concrete example of how specific those disclosures can become. It requires public-adjuster contracts to be in writing, titled "Public Adjuster Contract," and to include public-adjuster identifying information, claim type, signatures, signature dates, and the public adjuster's compensation percentage in prominent bold type before the insured's signature space: https://www.flsenate.gov/Laws/Statutes/2025/626.8796

California's Department of Insurance sample public-insurance-adjuster contract also puts the compensation percentage, insured initials, bond information, and cancellation rights directly in the contract package: https://www.insurance.ca.gov/0200-industry/0050-renew-license/0200-requirements/upload/Public_Insurance_Adjuster_Contract.pdf

Roofing contractors should not rewrite public-adjuster contracts. The contractor-side control is simpler: disclose contractor relationships that a reasonable policyholder would want to know before relying on a recommendation. Examples include:

1. A referral fee, lead fee, marketing allowance, or shared advertising arrangement.
2. Common ownership or family relationships between the roofer and adjuster.
3. A preferred-vendor relationship.
4. A public adjuster who sends recurring work to the contractor.
5. A contractor employee who is also licensed as an adjuster in any state.
6. Any agreement that could make the recommendation look less independent.

The FTC's endorsement guidance gives a broader consumer-protection principle: when a significant minority of the audience would not understand a relationship and would care if they knew, disclosure is recommended: https://www.ftc.gov/business-guidance/resources/ftcs-endorsement-guides-what-people-are-asking

The eCFR version of the FTC endorsement guides covers material connections and explains that a disclosure should clearly communicate the nature of the connection so consumers can evaluate its significance: https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-255

For roofers, the practical rule is direct: if the customer might think the referral is independent, disclose any relationship that could affect that assumption.

Must 4: Keep Estimates, Photos, Communications, and Claim Statements Fraud-Safe

The strongest disclosure is not a paragraph buried in a contract. It is a clean job file that shows who said what, when, and in what role. Storm jobs often involve urgent tarping, interior mitigation, roof measurements, supplements, mortgage checks, carrier requests, and customer anxiety. That environment rewards disciplined records.

Florida's public-adjuster consumer tips state that a public adjuster must provide a copy of the signed contract to the consumer at signing and to the insurance company within seven days, and must provide a written damage estimate for proof-of-loss submission within 60 days after the contract, subject to factors beyond the adjuster's control. The same Florida document says the estimate should itemize repairs, equipment, materials, labor, and supplies: https://myfloridacfo.com/docs-sf/insurance-consumer-advocate-libraries/ica-documents/public-adjuster-consumer-tips.pdf

Even when those Florida rules do not govern a particular job, the recordkeeping idea is useful for contractors. Keep the contractor estimate separate from the public adjuster's claim presentation. Label roof photos by slope, elevation, room, or component. Preserve original image dates when possible. Store carrier communications, public-adjuster communications, customer approvals, change orders, and supplement documentation in a single controlled file.

The FTC's disaster-repair guidance flags common post-storm risks, including pressure to sign immediately, demands for full payment up front, blank contracts, insurance-check assignment pressure, and unlicensed contractors: https://consumer.ftc.gov/articles/how-avoid-scams-after-weather-emergencies-and-natural-disasters

The Texas Office of Public Insurance Counsel gives similar contractor-fraud guidance: get written estimates, do not sign contracts with blanks, keep copies of documents, and be wary of deductible-waiver offers: https://www.opic.texas.gov/news/contractor-fraud/

Contractor teams should use those consumer-protection points as internal controls. Do not tell a customer to make a false or inflated claim. Do not add line items because "the carrier will cut it anyway." Do not promise that the insurer must pay for a product upgrade. Do not waive, rebate, absorb, or disguise deductibles where law or policy requires payment. In Texas, TDI specifically warns that property insurance policyholders must pay the deductible and that contractors may not waive or rebate it without insurer consent: https://www.tdi.texas.gov/consumer/storms/roofing-and-insurance-know-the-law.html

Must 5: Give the Customer a State-Specific Disclosure Packet Before Work Starts

A roofing company that works around public adjusters should standardize a customer-facing packet. The packet should be short enough to use on every claim and specific enough to prevent confusion.

At minimum, include:

1. The roofing contract and scope.
2. A statement that the roofer is a contractor and not the customer's public adjuster.
3. The public adjuster's name, company, license number, and state, if a public adjuster is involved.
4. A relationship disclosure if the roofer recommended the public adjuster or the public adjuster recommended the roofer.
5. A warning that the customer should read any public-adjuster contract before signing.
6. The customer's right to communicate directly with the insurer, insurer's adjuster, attorney, or other claim professional.
7. A written-estimate policy for roof observations, measurements, code items, labor, materials, and exclusions.
8. A document-retention statement explaining how photos, estimates, contracts, approvals, and communications will be stored.
9. A state-specific addendum for deductible, cancellation, solicitation, and public-adjuster rules.

California's individual resident public-adjuster application page shows the licensing rigor behind the role, including prelicensing education before issuance of a license, unless an exception applies: https://www.insurance.ca.gov/0200-industry/0050-renew-license/0200-requirements/public-adjuster/App-Procedures-Individual-Residents.cfm

Florida's contract statute and consumer tips show how public-adjuster paperwork can include font-size, signature, compensation, disclosure, cancellation, estimate, and timing details. Texas materials show that contractor advertising and role language can create risk. The lesson for a roofer is not to memorize every state rule. The lesson is to make state review part of the job-opening process whenever a public adjuster is involved.

A Practical Disclosure Workflow for Roofing Teams

Use one repeatable workflow before a project manager, estimator, or salesperson joins a claim meeting with a public adjuster:

1. Identify the loss state, policyholder, property address, insurer, claim number, and public adjuster.
2. Verify the public adjuster's license in the state where the loss occurred.
3. Save the license check to the job file.
4. Confirm who represents the policyholder, who represents the insurer, and who provides construction services.
5. Send the customer a contractor-role disclosure.
6. Disclose any referral, ownership, compensation, or preferred-vendor relationship.
7. Keep contractor estimates separate from the public adjuster's contract and fee documents.
8. Label all photos, measurements, inspections, and change orders.
9. Route coverage, settlement, fraud, deductible, and legal questions away from sales staff.
10. Review state-specific public-adjuster and contractor rules before signing work tied to an insurance claim.

This workflow protects the customer, the adjuster, and the contractor. It also makes the file easier to defend if a carrier, regulator, attorney, or customer later asks why the roofer was involved in a claim conversation.

Sales Script Boundaries

Train storm sales teams on phrases to use and phrases to avoid.

Safer phrases include:

1. "We can provide a construction estimate for the roof work."
2. "Your public adjuster, if you hire one, is separate from our roofing contract."
3. "Coverage questions should go to your insurer, public adjuster, or attorney."
4. "We can explain our measurements, materials, labor, code items, and installation assumptions."
5. "We cannot promise what your insurer will pay."

Risky phrases include:

1. "We will handle your claim."
2. "We represent you with the insurance company."
3. "We will negotiate the settlement."
4. "You will not have to pay your deductible."
5. "Sign now and we will get the carrier to buy the whole roof."

Put those examples in onboarding, storm-response refreshers, and call-review checklists. The goal is not to make salespeople sound scripted. The goal is to keep them inside the contractor role when the claim is active.

File Checklist

For any roof job involving a public adjuster, keep:

1. Public adjuster name, firm, license number, and license-check date.
2. Policyholder authorization or communication trail.
3. Contractor-role disclosure.
4. Referral or relationship disclosure, if any.
5. Roofing contract and state-specific addenda.
6. Public-adjuster contact details, but not legal advice notes.
7. Roof inspection photos and measurements.
8. Contractor estimate and revisions.
9. Carrier estimate, if the customer provides it.
10. Supplement or change-order records.
11. Deductible-payment documentation where required.
12. Customer approvals and cancellation documents.
13. Meeting notes that identify each participant's role.

Keep the file factual. Avoid private speculation about claim strategy, coverage, bad faith, or litigation unless counsel directs the recordkeeping process.

Monthly Review Questions

Public-adjuster controls should be reviewed before storm season and after any disputed claim. A short monthly review can catch risky habits before they become standard practice.

Ask:

1. Are sales calls still using contractor-only language?
2. Are public-adjuster license checks saved before claim meetings?
3. Are referral relationships documented in the customer file?
4. Are deductible discussions routed to approved language?
5. Are public-adjuster contracts kept separate from roofing contracts?
6. Are estimates limited to observed construction scope, code items, materials, labor, and exclusions?
7. Are photos and measurements labeled well enough for a later reviewer to understand the file?
8. Are state-specific addenda current for every market where crews are active?

If the answer to any question is unclear, pause the workflow and update training before the next claim meeting.

FAQs

Can a roofing contractor recommend a public adjuster?

Possibly, but the contractor should check state law and disclose any referral fee, ownership relationship, family relationship, shared marketing, recurring lead arrangement, or other connection that could affect the customer's view of the recommendation.

Can a roofer meet with the insurer's adjuster?

A roofer can often explain construction observations, measurements, materials, labor, code items, and estimate assumptions. The roofer should avoid acting as the policyholder's claim representative or negotiating coverage unless properly licensed and legally allowed in that state.

What should be disclosed when a public adjuster recommends a roofer?

The customer should know whether there is a referral fee, common ownership, family relationship, preferred-vendor arrangement, lead-sharing agreement, or other financial tie between the public adjuster and roofer.

Is a public-adjuster contract the same as a roofing contract?

No. A public-adjuster contract covers claim-adjusting services for the insured. A roofing contract covers repair or replacement work. Keep the documents separate and make sure the customer understands who is charging which fee.

How can RoofPredict help without becoming a claim representative?

RoofPredict can help a roofing company organize job photos, estimates, production notes, schedules, and customer communication records. It does not replace state licensing, public-adjuster compliance, legal review, or the policyholder's own claim professionals.