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Public Adjusters in Colorado — What They Do and When They Help

A public adjuster is a licensed professional you hire and pay to represent you in an insurance claim. They work for you rather than for the carrier, typically on a percentage of the settlement, and Colorado licenses and regulates them.

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Water damage

What is a public adjuster?

There are three kinds of adjuster and it helps to know which is which.

  • Staff adjuster — employed directly by your insurance carrier.
  • Independent adjuster — contracted by the carrier, often brought in after a large storm event. Still working for the carrier.
  • Public adjuster — hired and paid by you, the policyholder. Works on your side of the claim.

A public adjuster reviews your policy, inspects and documents the loss, prepares their own scope and estimate, and negotiates the settlement with the carrier on your behalf. On a large or contested claim that can be genuinely valuable.

They are not attorneys and cannot give legal advice or represent you in litigation. If a claim reaches that point, it is a lawyer you need.

Colorado Springs

Are public adjusters licensed in Colorado?

Yes, and the requirements are specific — which makes them checkable.

Colorado regulates public insurance adjusters under C.R.S. § 10-2-417, covering licensing, financial responsibility and standards of conduct. To hold a licence, a public adjuster must:

  • Pass a written examination
  • Maintain a surety bond of at least $20,000 in favour of the state
  • Complete 24 hours of continuing education every two-year period

The Colorado Division of Insurance also maintains specific contract and record-retention rules for public adjusters.

Verify the licence before signing anything. The Division of Insurance can confirm whether an individual holds a current Colorado public adjuster licence. Anyone soliciting this work without one is operating outside the law, and after a large hail event that is not a hypothetical concern.

Water damage

You have 72 hours to change your mind

This is the single most useful thing on this page and almost nobody knows it.

Under Colorado’s rules for public adjuster contracts, the insured has the right to rescind the contract within 72 hours of signing. The rescission must be in writing, addressed to the public adjuster at the address given in the contract, and to your insurer.

If you rescind, anything of value you gave under the contract must be returned within 15 business days of the public adjuster receiving your cancellation notice.

Why this matters practically: public adjusters sometimes solicit door to door after a significant storm, at exactly the moment a homeowner is stressed and least equipped to evaluate a contract. A 72-hour rescission right is a real protection — but only if you know it exists and you act in writing, promptly, to both parties.

If you have signed something you now regret, check the date. You may still be inside the window.

Water on the floor right now?

Tell us where it came from and how long it has been there. We will give you a time, not a window.

24/7 — Colorado Springs and El Paso County

Colorado Springs

What do they charge?

A percentage of the settlement, and the range is wide.

Colorado public adjusters typically charge somewhere between 5% and 15% of the final settlement amount, depending on the size and complexity of the claim.

During a declared catastrophic disaster, Colorado caps the fee at 10% of the settlement. That cap exists precisely because disasters produce the conditions in which people sign things they have not read.

Questions to ask about the fee before signing:

  • Is the percentage calculated on the total settlement, or only on the increase they achieve above the carrier’s original offer?
  • Does it apply to amounts the carrier had already agreed before they were engaged?
  • Does it apply to the recoverable depreciation released later?
  • Are there any additional charges beyond the percentage?
  • What happens to the fee if you cancel partway through?

That first question matters enormously. A fee on the whole settlement is very different from a fee on the improvement — and on a claim the carrier was always going to pay in large part, the difference is substantial.

Water damage

When is a public adjuster genuinely worth it?

Being straight about this cuts both ways, and we have no stake in the answer.

Worth considering when:

  • The claim is large. A percentage fee only makes sense against a settlement big enough to justify it.
  • It is genuinely contested. The carrier has denied it, is underpaying materially, or the scope disagreement has stalled.
  • The loss is complex. Multiple structures, business interruption, extensive contents, or a total loss.
  • You are out of the area or overwhelmed. Deployed, mid-PCS, an out-of-state landlord, or dealing with something else difficult.
  • The policy language is genuinely ambiguous and you are not confident reading it.

Probably not worth it when:

  • The claim is small. The fee will consume a meaningful share of a modest settlement.
  • Nothing is in dispute. If the carrier has scoped it properly and is paying, there is nothing to improve.
  • It is a scope disagreement your contractor can resolve. Most can be. Two people using the same vocabulary settle the majority of scope questions in one conversation.
  • You have not tried the free options first. A re-inspection request, a supervisor escalation, and a complaint to the Colorado Division of Insurance all cost nothing.

Try the free steps before paying a percentage. A well-documented re-inspection request supported by moisture readings and photographs reverses a surprising number of positions without anyone paying a fee.

Colorado Springs

What should I watch out for?

Four things, and the first is the most common in this market.

1. Post-storm door-knocking. Colorado Springs is a hail market, and after a significant event the region fills with people offering claim help. Some are licensed and competent. Some are neither. Never sign anything on the doorstep, whatever the urgency implied.

2. Pressure to sign immediately. There is no legitimate reason a contract cannot wait until tomorrow. If someone tells you the claim will be lost otherwise, that is the signal to stop.

3. A fee structure you cannot restate in one sentence. If you cannot explain what you will pay and on what basis, do not sign it.

4. Anyone who is both adjusting and repairing. A single party representing you on the claim and profiting from the repair scope has an obvious conflict. In many states there are restrictions on this combination. Ask directly.

Water damage

What is the difference between a public adjuster and my contractor?

Different roles, and the boundary is a legal one rather than a preference.

A restoration contractor — us — assesses the physical damage, produces a scope of the work required, documents moisture conditions, performs mitigation and reconstruction, and can discuss that scope with your adjuster. We can explain what is wet, why it needs to come out, and what it takes to dry and rebuild.

A public adjuster interprets your policy, evaluates coverage, prepares the claim, and negotiates the settlement as your representative. That is claims work, it requires a licence, and we do not do it.

Where the line sits in practice: we can tell you the subfloor metered at 22% against a 9% baseline and therefore has to come out. We cannot tell you whether your policy will pay for it. Anyone who blurs those two things is either confused or operating outside their licence.

That distinction is also why the useful rule from elsewhere on this site applies here: get coverage confirmations from your carrier in writing, not from whoever is holding the moisture meter.

Colorado Springs

What are the free alternatives?

Work through these before paying a percentage of your settlement.

  1. 1
    Ask for a re-inspection, and be specific about what you want re-examined.
  2. 2
    Supply the evidence — moisture logs, photographs taken once material came out, your contractor's line-item scope.
  3. 3
    Have your contractor speak to the adjuster directly. This resolves most scope disputes.
  4. 4
    Escalate to a supervisor or desk review within the carrier.
  5. 5
    File a complaint with the Colorado Division of Insurance. Free, creates a record, and carriers respond to it. No lawyer required.
  6. 6
    Then consider a public adjuster or an attorney.

Colorado also provides a statutory remedy for unreasonable delay or denial of first-party benefits under C.R.S. §§ 10-3-1115 and 10-3-1116, allowing recovery of two times the covered benefit plus reasonable attorney fees and costs. On a claim where the conduct is genuinely unreasonable, that may make an attorney a better route than a percentage fee.

Water damage

What we can and cannot do for you

Stated plainly, because the boundary matters.

We can: inspect and meter the loss · produce a line-item scope · document moisture conditions daily · photograph what is behind the wall once it is open · speak to your adjuster about the physical scope · give you a copy of everything, whether or not we do the work · tell you honestly when a scope you have been given looks reasonable.

We cannot: interpret your policy · tell you what is covered · negotiate your settlement · represent you in a claim · advise you on whether to file.

We will not: take a percentage of your settlement · charge you for the documentation we produce during mitigation · accept a referral fee for pointing you at anyone on this page.

Contact us on (719) 618-9013 if you want a restoration scope, a second opinion, or a straight answer about what is actually wet.

Frequently asked

Questions people actually ask

Do I need a public adjuster for a water damage claim?
Usually not. Most residential water claims are resolved through documentation and a conversation between your contractor and the adjuster. A public adjuster earns their fee on large, complex or genuinely contested claims — not on a straightforward burst pipe that is being handled properly.
How do I check a Colorado public adjuster's licence?
Contact the Colorado Division of Insurance. Public adjusters in Colorado must pass a written exam, hold a surety bond of at least $20,000 in favour of the state, and complete 24 hours of continuing education every two years.
Can I cancel a public adjuster contract?
Under Colorado's rules you have the right to rescind within 72 hours of signing. The rescission must be in writing and sent to both the public adjuster and your insurer, and anything of value you gave must be returned within 15 business days of them receiving it.
What do public adjusters charge in Colorado?
Typically 5% to 15% of the settlement. During a declared catastrophic disaster the fee is capped at 10%. Ask specifically whether the percentage applies to the whole settlement or only to the increase achieved.
Is a public adjuster the same as a lawyer?
No. Public adjusters handle the claim; they cannot give legal advice or represent you in litigation. If a dispute reaches the point of legal action, you need an attorney licensed in Colorado.
Do you work with public adjusters?
We work alongside them where a homeowner has engaged one — providing the scope, the moisture documentation and the photographic record. We do not receive or pay referral fees in either direction.

Call Dry Standard Restoration

IICRC-certified. We meter before we quote, and you get the readings.

24/7 — Colorado Springs and El Paso County