Pennsylvania Public Adjuster Law (HB 1972): Fee Caps, Cancellation Rights and Red Flags

Pennsylvania's new public adjuster law, House Bill 1972, caps what a public adjuster can charge at 10% of the settlement for claims from a catastrophic event and 20% for other claims. It also bans upfront fees, gives homeowners more time to cancel a contract (10 business days after a catastrophe, up from 3 calendar days), and bars adjusters from having a financial stake in the repair work on a claim they handle. The bill became Act 77 of 2026 on October 22, 2026, and the Pennsylvania Insurance Department (PID) announced it on October 23. It takes effect 180 days after enactment, which by our count is April 20, 2027.

This guide is based on the final bill text (Printer's No. 3550) and bill history on the Pennsylvania General Assembly website, the PID announcement and PID's consumer guidance, all checked on October 23, 2026. It is general information, not legal advice.

What is a public adjuster?

A public adjuster is a licensed professional you hire, at your own cost, to prepare and negotiate your insurance claim with your insurance company. PID's consumer page puts it simply: public adjusters are hired by the policyholder, they are not employees of insurance companies, and "you are NOT required to hire a public adjuster for the insurance company to pay your claim" (PID).

The new law makes adjusters hand you a separate disclosure before you sign that explains the three kinds of adjusters you may meet on a claim:

Type	Who they work for	Who pays them
Company adjuster	Your insurance company (as an employee)	The insurer. No fee to you.
Independent adjuster	Your insurance company (on contract)	The insurer. No fee to you.
Public adjuster	You	You, usually a percentage of the settlement

In Pennsylvania a public adjuster must be licensed by PID, must have a signed contract with you before helping with the claim, and must use a contract form PID has approved (PID).

When does hiring a public adjuster make sense?

A public adjuster's fee comes out of your claim payment, so the question is whether their work is likely to add more than they take. That is most likely when:

• The loss is large or complicated, such as a major fire, a whole-house water loss or damage to a home with many contents, where building a detailed estimate and inventory is a lot of work.
• You and the insurer disagree on scope or price after you have already received an offer. Under the new law, the adjuster can only take a fee on the amount above what was offered before you hired them.
• You do not have the time or capacity to manage the paperwork, meetings and documentation yourself.

It is less likely to pay off for a small claim, a clear-cut claim the insurer is already handling well, or a loss where the insurer quickly pays your policy limit. The law addresses that last case directly: if your insurer pays or commits in writing to pay the policy limit within five business days after you report the loss, the adjuster cannot take a percentage commission. They are limited to reasonable compensation for the time and expenses of those five days, as determined by the Insurance Commissioner.

Before you hire anyone, read our guide on how to appeal a denied homeowners insurance claim. Filing a complaint with PID or asking the insurer for a written explanation costs nothing.

What does HB 1972 change?

Fee caps

A public adjuster may not charge, agree to or accept more than:

• 10% of a "catastrophic claim settlement" (a claim arising from a catastrophic event), or
• 20% of any other claim settlement.

The law defines "settlement" as the money the insurer pays to settle the claim, minus amounts paid for additional living expenses. Adjusters also may not charge a fee for negotiating additional living expenses or take a fee out of those payments.

Worked example: your insurer offers $50,000 after a storm the governor has declared a disaster emergency. You then hire a public adjuster, and the final settlement is $80,000. The adjuster cannot take a fee on the $50,000 offered before they were hired, so the most they can charge is 10% of the $30,000 difference, or $3,000. Without that rule, 10% of the full $80,000 would be $8,000.

Which claims count as catastrophic

The 10% cap applies to claims arising from a "catastrophic event," which the law defines as any of these:

1. A major disaster declared by the President of the United States.
2. A disaster emergency proclaimed or declared by the Governor under 35 Pa.C.S. § 7301.
3. An incident, natural or human-caused, that results in substantial loss of life or serious injury affecting a significant portion of the population; widespread destruction or disabling of critical infrastructure; demand that overwhelms emergency response systems; severe disruption of economic activity; or impairment of the government's or private sector's ability to respond and recover.

Most single-home losses, such as a kitchen fire or a burst pipe, will fall under the 20% cap.

No upfront fees

A public adjuster may not require or accept any fee, retainer, deposit or other payment before the claim is settled. Contracts also may not let the adjuster take the whole fee from the first insurance check (the fee must come as a percentage of each check), collect a fee on money that is owed but not yet paid, require checks to be issued only in the adjuster's name, or add collection costs or late fees.

More time to cancel

Under the current law, the contract gives you three calendar days after signing to rescind. Once HB 1972 takes effect, you can cancel within:

Situation	Time to cancel
Claim from a catastrophic event	10 business days
Other claim, contract signed within 48 hours of the loss after an in-person pitch at the scene	5 business days
All other claims	3 business days

If you cancel, anything of value you gave under the contract must be returned within 15 business days. You can still owe the reasonable value of services already performed and reasonable emergency out-of-pocket expenses the adjuster paid before you cancelled. The cancellation right, the fee and the adjuster's license number must each be separately signed or initialed in the contract.

No stake in the repairs

The adjuster, and their employees, relatives and affiliates, may not have any direct or indirect financial interest in any part of the claim beyond the fee in the contract. They may not refer you to a contractor or other business they have an interest in or get paid by, and they may not contract to repair, rebuild or demolish property on a claim they are adjusting. A violation of the financial-interest rules, and acting as a public adjuster without a license, are treated as insurance fraud, a third-degree felony.

Other changes

• Bigger bond: the required public adjuster bond doubles from $20,000 to $40,000.
• Insurers must check the license: an insurer has to verify that the person acting as your public adjuster holds a valid PID license. If not, it must notify PID and may not pay that person.
• Prohibited practices: an adjuster may not suggest your property is damaged without inspecting it, offer to pay or waive your deductible, take an interest in salvage, hold your money (beyond their fee) for more than 30 days, or block the insurer from inspecting the property or getting information it needs.
• Contractors and assignments: property policies may limit assignment of claim benefits to someone with legal authority to represent you (such as your licensed public adjuster or a person holding your power of attorney) or a new owner of the property. Repair contractors may not use a power of attorney to get around the licensing law.

When does the new law take effect?

Section 5 of the bill says the act takes effect in 180 days. The governor approved it on October 22, 2026 (bill history), so the new rules start around April 20, 2027 by our count. PID had not published an effective date as of October 23. Until then, the current law applies, including the three-day cancellation window. The bill text does not say how the new rules apply to contracts signed before that date, so ask PID if you sign a contract in the meantime.

How do you check a public adjuster's license with PID?

1. Ask for the adjuster's PID license number. Under the new law it must appear in both the pre-contract disclosure and the contract.
2. Open PID's Find a Licensed Individual search. You can search by license number, by name, or by city and state.
3. To narrow the results, pick the license type "Resident Public Adjuster Indv" or "Non-Res Public Adjuster Indv."
4. Confirm the name matches the person and company on the contract and that the license is active.
5. Check PID's agent and company research page for complaint history and regulatory or enforcement actions.

If something looks wrong, contact PID through pa.gov/consumer-complaints or call 1-866-PA-COMPLAINT (1-866-722-6675).

What are the red flags?

• Someone shows up at your door right after a storm or fire and pushes you to sign that day.
• They say your roof or house is damaged before anyone has inspected it.
• They offer to pay or waive your deductible.
• They ask for a deposit, retainer or any payment before the claim is settled.
• They want to do the repairs too, or steer you to a contractor they are connected with.
• They will not give you a license number, or the license search does not match.
• The contract asks for checks to be made out only to them, adds late fees, or (once the law is in effect) charges more than 10% on a catastrophe claim or 20% on any other claim.
• They do not give you a separate written disclosure explaining that you are not required to hire a public adjuster.

Whoever handles your claim, keep your own records. Our home inventory photo checklist helps you document belongings before a loss, and our flood insurance claim guide covers the NFIP deadlines that apply after a flood. For flood exposure in the state, see flood risk for homes in Pennsylvania.

Frequently asked questions

How much can a public adjuster charge in Pennsylvania under HB 1972?

Once the law takes effect, no more than 10% of the settlement for a claim from a catastrophic event (such as a presidential major disaster or a governor's disaster emergency) and no more than 20% for any other claim. The adjuster cannot charge a fee on money the insurer offered or paid before they were hired, or on additional living expense payments.

When does Pennsylvania's new public adjuster law take effect?

The act takes effect 180 days after enactment. The governor approved it on October 22, 2026, which puts the start at about April 20, 2027. The current rules, including a three-day cancellation window, apply until then.

How long do I have to cancel a public adjuster contract in Pennsylvania?

Under the new law, 10 business days for a claim from a catastrophic event, 5 business days if you signed within 48 hours of the loss after an in-person pitch at the scene, and 3 business days in other cases. Any money or property you gave must be returned within 15 business days, though you may owe the reasonable value of work already done.

Do I have to hire a public adjuster to get my claim paid?

No. The Pennsylvania Insurance Department says you are not required to hire a public adjuster for your insurer to pay your claim. Company and independent adjusters are paid by your insurer and do not charge you a fee.

Sources

• Pennsylvania General Assembly, House Bill 1972 (2025-2026), bill history and text, and final text, Printer's No. 3550
• Pennsylvania Senate Appropriations Committee, fiscal note for HB 1972, PN 3550
• Pennsylvania Insurance Department, Governor Shapiro signs new public adjuster law (October 23, 2026)
• Office of the Governor, Governor Shapiro signs 58 bills into law (October 22, 2026)
• Pennsylvania Insurance Department, What you should know before hiring a public adjuster
• Pennsylvania Insurance Department, Find a Licensed Individual and agent and company research tools