Florida Adjuster Code of Ethics: Duties, Limits, and Penalties

The Florida adjuster code of ethics is a binding set of rules, authorized by Florida Statute 626.878 and spelled out in Rule 69B-220.201 of the Florida Administrative Code, that every licensed adjuster in the state must follow when handling a claim.¹ It opens with a single governing principle: the duty to treat the claimant fairly comes before the adjuster’s own financial interest.² Everything else in the code, from how estimates are prepared to what fees a public adjuster can charge, flows from that rule. Breaking the code can cost an adjuster money, their license, or both.

Who the Code Applies To

Florida licenses three types of adjusters, and the ethical rules reach all of them, though some provisions target public adjusters alone.

Company employee adjusters work directly for an insurer and investigate claims on its behalf.
Independent adjusters are contracted by insurers, often after disasters, and also represent the insurer.
Public adjusters work for you, the policyholder. Because they handle claim proceeds and have a financial stake in the outcome, Florida regulates them more tightly, requiring a $50,000 surety bond among other conditions.³

Knowing which type you’re dealing with matters, because an adjuster paid by the insurer owes a different loyalty than one paid by you.

The Fairness Duty and How Claims Must Be Handled

Beyond the baseline fairness duty, every adjuster must comply with all insurance laws and must have the technical knowledge to handle the type of coverage in front of them. If a claim exceeds an adjuster’s competence, the rules say the adjuster should not take it on. The statute authorizing the code also requires practices that prevent conflicts of interest and preserve the claimant’s right to participate in the adjustment.¹

Once a claim is open, adjusters must act promptly. They have to respond to communications within a reasonable timeframe, begin investigating as soon as proof-of-loss documentation arrives, and make truthful reports based on a complete investigation rather than a partial one. They also have to disclose all relevant benefits, coverage options, and limitations to the policyholder. If an adjuster inspects your property, they must leave you a document showing their name and state license number.

Florida’s broader insurance code reinforces these obligations. Under the unfair claim settlement practices statute, insurers and their adjusters cannot deny a claim without a reasonable investigation, must affirm or deny coverage within 30 days after proof-of-loss statements are completed, and must explain any denial or compromise offer in writing.⁴

How Estimates Must Be Prepared

One of the most detailed parts of the code addresses loss estimates, because this is where disputes most often start. Adjusters must use an electronic estimating program that produces itemized, per-unit breakdowns covering equipment, materials, labor, and supplies. The program’s price data has to reflect current market rates for the geographic area and be updated at least monthly.²

Changing the software’s outputs is prohibited unless the adjuster can document that the modification is needed for accuracy and reflects local market prices. Any modified estimate has to include a variation report showing exactly what changed, and the adjuster must keep every version. Neither you nor the insurer can waive these requirements. If an estimate looks low, ask for the variation report. If it doesn’t exist, something is wrong.

What Adjusters Cannot Do

The code and related statutes draw firm lines around conduct that would compromise an adjuster’s objectivity or harm the policyholder.

Fraud and Misrepresentation

Adjusters cannot make false or misleading statements about policy coverage, the facts of a claim, or settlement terms. This is a compulsory ground for license revocation under Florida Statute 626.611, meaning the Department of Financial Services has no discretion to let it slide.⁵

Practicing Law Without a License

Public adjusters cannot give legal advice or negotiate claims involving bodily injury, death, or noneconomic damages. Those claims require an attorney.⁶ Both the DFS and the Florida Bar can discipline a public adjuster who crosses that line.⁷

Controlling the Repairs

A public adjuster cannot take control over who performs repair work on your property. Under Florida Statute 626.854(18), no public adjuster or anyone acting on their behalf may enter a contract or accept a power of attorney giving them authority to choose contractors or vendors for the repair.⁸ If the person valuing your damage also profits from the repair, the estimate stops being objective.

Solicitation Limits

Public adjusters may only solicit clients Monday through Saturday, between 8 a.m. and 8 p.m. No Sunday calls, no late-night door-knocks after a storm. They also cannot offer loans, cash advances, or gifts worth more than $25 to pressure a client into signing a contract.⁸

Public Adjuster Fee Caps

Florida caps what public adjusters can charge, with different limits depending on the circumstances of the claim. These are statutory and cannot be negotiated upward.

10% of claim payments for claims arising from an event covered by a Governor’s emergency declaration, during the first year after the declaration.⁸
20% of claim payments for non-emergency claims.
20% of any additional payments on reopened or supplemental claims, and only on amounts the public adjuster’s work produced. Nothing on amounts the insurer already paid before the public adjuster was hired.
1% if the insurer pays at or above the policy limit for a coverage part within 14 days of the loss, or within 10 days after the contract is signed, whichever is later.
Zero on any payment the insurer made before the public adjusting contract was signed.

Fees are calculated on amounts paid to the insured, not counting attorney fees and costs. A contract that charges above these caps violates Florida law.

Required Contract Terms for Public Adjusters

If you hire a public adjuster, the contract must be in writing in at least 12-point type and must include the adjuster’s full name, business address, license number, phone, and email; the adjusting firm’s name; your contact information; a description of the loss and property address; your insurer’s name and policy number if available; and the type of claim. The fee percentage and a fraud statement each have to appear in at least 18-point bold type before the signature line.

The adjuster must also give you a separate disclosure explaining the three adjuster types, making clear that the public adjuster does not work for the insurer, and confirming your right to communicate directly with your insurance company, your attorney, or anyone else about your claim.⁹ You have a statutory right to cancel the contract, so an adjuster who tells you otherwise is already violating the code.¹

Penalties for Breaking the Code

Florida splits violations into two tiers.

Some conduct leaves the DFS no choice. When it finds fraud, willful misrepresentation of policy terms, misappropriation of funds, or a demonstrated lack of fitness or trustworthiness, it must deny, suspend, or revoke the license. The same is true when an adjuster materially misrepresents a contract to settle a claim on worse terms than the policy actually provides.⁵

A broader set of violations gives the DFS discretion. These include breaking any provision of the insurance code, violating a lawful DFS order or rule, engaging in unfair or deceptive practices, or showing a pattern of conduct that makes the adjuster a source of injury to the public.¹⁰

The DFS can impose administrative fines of up to $500 per violation, or up to $3,500 per violation when the adjuster acted willfully. It can also place an adjuster on probation, suspend the license, or revoke it outright. A suspended or revoked adjuster is barred from every part of the claims process, including estimating damage, filing paperwork, negotiating with insurers, and participating in mediation or appraisal. Continuing to work claims after that point is treated as unlicensed adjusting.¹

Adjusters also have to keep up with continuing education. All-lines and public adjusters must complete 24 hours per licensing cycle, including 4 hours in law and ethics, and public adjusters must take courses approved specifically for public adjuster law, policy, and ethics. Falling behind is itself a basis for discipline.¹¹

Filing a Complaint

If you think an adjuster has violated the code or mishandled your claim, file a complaint with the DFS Division of Consumer Services through the Consumer Assistance Portal at assistcon.myfloridacfo.gov. The DFS reviews the complaint and, if warranted, opens an investigation that can lead to any of the penalties above.

Before you file, gather your evidence. Save every version of the adjuster’s estimates, the written communications, the contract you signed, and the disclosure form you received. If the adjuster never provided an itemized estimate or a variation report when one was required, note that too. The missing documentation is itself evidence.

1
Florida Senate. Florida Code 626.878 – Rules; Code of Ethics
2
MyFloridaCFO. Florida Administrative Code 69B-220.201 – Ethical Requirements for All Adjusters
3
The Florida Legislature. Florida Code 626.865 – Public Adjuster Qualifications
4
The Florida Legislature. Florida Code 626.9541 – Unfair Insurance Trade Practices
5
Florida Senate. Florida Code 626.611 – Grounds for Compulsory Refusal, Suspension, or Revocation
6
Florida Senate. Florida Code 626.854 – Public Adjuster Defined; Prohibitions
7
MyFloridaCFO. Compliance Information: Adjusters
8
The Florida Legislature. Florida Code 626.854 – Public Adjuster Defined; Prohibitions
9
MyFloridaCFO. Public Adjuster Code of Ethics and Contract Checklist
10
Florida Senate. Florida Code 626.621 – Grounds for Discretionary Refusal, Suspension, or Revocation
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MyFloridaCFO. Continuing Education Requirements