A quiet but seismic policy shift by Florida’s state-backed Citizens Property Insurance Corporation is sending shockwaves through the ranks of public adjusters, and experts warn that if other insurers follow suit, storm-battered homeowners may soon find themselves navigating claims battles alone.
Earlier this month, Florida adjusters were stunned to receive letters from Citizens, notifying them that they would no longer be listed as co-payees on insurance settlement checks. The move, seemingly administrative in nature, could have massive implications for how these professionals get paid—and whether they’ll remain in the industry at all.
“Our policy requires us to pay the insured unless someone other than the insured, such as a guardian or other loss payer, is legally entitled to the claims payment,” the letter from Citizens stated.
It went on to clarify: “The insured is liable for the payment to parties with whom he or she contracts, not the insurer.”
That may sound like standard procedure, but public adjusters say it amounts to a sudden and dangerous departure from long-standing industry norms.
Industry Ripple Effect Could Be Devastating
Public adjusters, much like attorneys, are hired by policyholders to represent their interests when filing claims, often securing larger settlements than homeowners could on their own. And because they typically receive up to 10% of the final payout, their inclusion on checks has long ensured timely and reliable compensation.
“This will make it much more difficult for policyholders to get a second opinion, find professionals to help, and get fairly paid for their losses. I suspect that is the intended consequence,” warned Nancy Dominguez, executive director of the Florida Association of Independent Insurance Adjusters.
“If public adjusters find it difficult to get paid for their work since their fees are not being protected it is likely they will leave the industry,” Nancy Dominguez added.
Dominguez represents more than 750 independent adjusters, many of whom are now considering whether staying in the profession is viable.
Citizens Defends Move, but Critics Call Foul
Citizens spokesman Michael Peltier defended the decision, insisting it was meant to streamline the recovery process for policyholders and had no bearing on their contractual obligations with adjusters.
“This procedural change makes it easier for our policyholders to get back on their feet and does not impact any contract between a policyholder and their public adjuster, whose fees are governed by statute,” Peltier said.
Yet, critics argue the shift puts too much faith in homeowners to pay up on their own—and opens the door to costly disputes.
“What happens if you have a policyholder who decides, ‘Oh, I’m not going to pay anybody. I’m keeping this money for whatever reason,’ you know? Now it becomes a dispute between the public adjuster and the policyholder. Why?” Dominguez asked.
Contradicting Its Own Guidance
Adding fuel to the fire, Dominguez shared a screenshot of Citizens’ own website, captured just weeks ago that directly contradicts the new policy.
The now-removed FAQ once stated: “Citizens must protect the public adjuster’s interest by including the public adjuster as an additional payee on the check,” provided a signed letter of representation was submitted.
That version was last updated on April 28. As of Monday, the question is gone from the site.
Curiously, an adjacent FAQ about mortgage companies still remains. That entry affirms that mortgage lenders are listed on checks if they have “an insurable interest in the damaged property.”
Are Public Adjusters Being Singled Out?
The perceived double standard hasn’t gone unnoticed. In a flurry of online discussions, professionals within the industry are voicing their frustration and their fears.
“The reason the mortgage company is placed on the check is because of the contract with the insured,” posted Amy Ruiz in response to Dominguez’s Facebook update. “The mortgage company is legally entitled to the payment per the Citizens policy. Same as the public adjuster.”
Others worry that Citizens is testing the waters, and that private insurers may soon replicate the move.
“They’re singling out our industry, which is not uncommon,” Dominguez said. “You know, we’re the scapegoats because we end up costing them more money, because we get people paid what they’re owed.”
Insurers Wary of Adjusters’ Impact on Payouts
It’s no secret that insurance companies often bristle at the involvement of public adjusters. In public meetings, Citizens has lumped them in with plaintiffs’ attorneys pointing to data that suggests higher claims costs when policyholders bring in representation.
By law, public adjusters’ fees are capped at 10% for claims linked to declared emergencies and 20% for others. But even within those bounds, their work often results in significantly higher payouts.
Which may be precisely why some insiders suspect this policy shift is less about paperwork, and more about profit margins.
If the Trend Spreads, Who Advocates for Homeowners?
For many Florida residents, particularly those rebuilding after hurricanes, public adjusters are more than a luxury; they’re a lifeline. If adjusters exit the field en masse, homeowners could be left without the guidance they need to navigate complex and often combative insurance claims.
And that could spell disaster.
“Fewer will be available to help policyholders file insurance claims after hurricanes or other disasters,” Dominguez warned.
