Pennsylvania Proposes Caps on Public Adjuster Fees
New rules would limit fees for homeowners filing insurance claims and mandate clearer pre-contract disclosures.
Updated on Oct. 29, 2026 in Insurance
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Should the state impose stricter fee caps and bond requirements on public insurance adjusters?
The Pennsylvania Senate Banking and Insurance Committee recently amended House Bill 1972, a proposal designed to tighten oversight of public adjusters. If passed, the legislation will set new limits on fees and conflict-of-interest practices for homeowners seeking claims assistance.
Why it matters
The bill aims to standardize consumer protections by capping adjuster fees and banning referral payments to contractors, addressing long-standing gaps in regulation. This oversight shift is intended to reduce costs and clarify financial relationships for property owners after a loss.
The bill sets a 20% fee cap for standard claims and a 10% cap for catastrophic claims to protect policyholder settlements. Additionally, it increases the required surety bond for public adjusters from $20,000 to $40,000 to improve industry accountability.
The players
Pennsylvania Senate Banking and Insurance Committee
The state legislative body responsible for overseeing insurance regulations and reviewing industry-related legislation.
The details
House Bill 1972 mandates that public adjusters provide clear disclosures differentiating their role from company or independent adjusters, ensuring homeowners understand who represents their interests. The legislation also prohibits adjusters from collecting referral fees from contractors and establishes stricter rescission periods of up to 10 business days for catastrophic claims. Furthermore, operating without a proper license would be classified as a third-degree felony under the proposed insurance fraud statute.
Timeline
The original Public Adjuster Licensing Law was enacted in 1983.
House Bill 1972 was initially introduced in October 2025.
The Senate committee amended the bill on June 9, 2026.
The new regulations would take effect 180 days after the bill is enacted.
Money Landscape
This proposal marks the first significant overhaul of the 1983 Public Adjuster Licensing Law in Pennsylvania. It aligns state oversight with contemporary industry standards to address evolving fee structures and consumer protection needs.
Homeowners should prepare for these changes by reviewing their existing insurance contracts and the credentials of any professionals they hire to assist with claims. If you are currently navigating a property loss, consult a qualified financial or tax professional to understand your rights regarding adjuster fees.
The takeaway
Legislative efforts are moving toward stricter control over insurance adjuster practices to prevent hidden costs and conflicts of interest. Property owners should familiarize themselves with current rescission windows and disclosure requirements when engaging third-party claims assistance.
Further reading
For more information on managing your coverage, review our guide to Insurance.
Source note: This article includes information reported by Insurance Business.
Live Poll
Should the state impose stricter fee caps and bond requirements on public insurance adjusters?
