When you’ve suffered a major property loss in Texas, the decision to hire a Public Adjuster (PA) is often the first step toward a fair recovery. However, the relationship between a PA and a policyholder is strictly governed by the Texas Insurance Code.
In 2026, following the full implementation of HB 2067, transparency is more than just a best practice, it is the law. Before you sign any agreement, here are the non-negotiable elements that must be in your contract to protect your rights.
1. The “72-Hour Rule” (Right of Rescission)
Under Texas Insurance Code § 4102.103, every public adjuster contract must include a provision allowing you to cancel the agreement for any reason within 72 hours of signing.
- The Specifics: This notice must be in writing.
- The 2026 Standard: In today’s fast-paced environment, this “cooling-off period” ensures that policyholders don’t feel pressured into a decision during the chaotic days immediately following a storm or fire.
2. Commission Caps and Fee Transparency
Texas law is very clear on how much a Public Adjuster can charge.
- The 10% Cap: Fees are generally capped at 10% of the claim settlement.
- The 72-Hour Prompt Payment Exception: If your insurance company pays or commits to pay the policy limits within 72 hours of the loss being reported, the PA is not entitled to a percentage-based fee. They may only charge for time and expenses. Your contract should clearly outline these percentages so there are no surprises when the check arrives.
3. The Impact of HB 2067 on Your Contract
The 2026 implementation of HB 2067 changed how information flows from the insurance company. Previously, you had to request a written explanation for a denial or low settlement. Now, carriers must provide these automatically.
- What this means for your PA: Your contract should reflect that the PA will audit these “automatic explanations” for accuracy. Since the carrier is now required to put their reasoning in writing by law, your Public Adjuster uses that written record as the “roadmap” for your rebuttal.
4. No “Conflict of Interest” Clauses
In Texas, a Public Adjuster cannot be the contractor on the same claim. This is a major ethical boundary. If a person offers to “handle your claim for free” as long as they get the construction work, they are likely violating Texas Insurance Code § 4102.158. Your contract should be a “service-only” agreement, ensuring that your PA’s only goal is to maximize your financial recovery, not to sell you roofing materials.
Why 11 Years of Experience Matters
Contract law in the Texas insurance industry is complex. By choosing an adjuster who has navigated the Texas market for over a decade, you aren’t just getting a signature on a page; you are getting a forensic audit of the carrier’s decisions. We don’t rely on outside engineers to tell us what’s wrong; we use our own experience to identify technical gaps in the carrier’s “automatic explanations” and hold them accountable to the TDI Consumer Bill of Rights.
Legal Disclaimer
The information provided on this blog is for general educational and informational purposes only and should not be construed as legal advice or a professional opinion on any specific insurance claim. While every effort is made to ensure the accuracy of the information presented, the Texas insurance landscape is subject to frequent regulatory changes, including the implementation of new laws like HB 2067 and updates to the Texas Insurance Code. Viewing this content or contacting our office through this website does not establish a public adjuster-client relationship. We are Licensed Texas Public Adjusters and do not provide legal services or engage in the unauthorized practice of law. Every insurance policy is unique, and coverage determinations are based on the specific language of your individual policy and the facts of your loss. For specific advice regarding your insurance claim or legal rights, you should consult with a licensed professional or a qualified attorney.