Public adjuster fees for building damage claims in Canada

What you are paying for on a building claim

Building claims are estimate-driven. Much of the adjuster's work goes into measuring, photographing and pricing: inspecting roof slopes and elevations, identifying hidden damage behind finishes, arranging roofer or engineer opinions, building a counter-estimate in the same software the insurer uses, and then defending each line during reinspections.

Around that technical core sit the policy review (comprehensive or named perils, by-law endorsement, detached structures limit), the proof of loss, follow-up on the replacement cost holdback and, if needed, preparation for appraisal.

The amount of work does not always track the size of the claim. A modest roof loss with a discontinued shingle and a matching dispute can take as long as a straightforward large claim, which is one reason why minimum fees and higher percentages apply at the lower end of the scale.

Indicative percentage bands

There is no official national fee scale for public adjusters in Canada. The table on this page shows an indicative order of magnitude observed on the market for building damage files; it is not a legal or regulatory tariff. Small roof and siding claims tend to carry the highest percentages because inspection and estimating time is largely fixed.

Indicative amounts, to be checked with each expert.

Three common pricing models

The contingency fee, a percentage of the money recovered, is the norm. Before comparing rates, identify the base: the full settlement, the amount actually paid after deductible, or only the increase over the insurer's documented first offer. Increase-based agreements often use higher rates, sometimes in the range of 20 to 30 percent of the additional amount, but they leave you paying nothing on what was already conceded.

Flat fees appear for well-defined jobs, for instance a single roof estimate or a review of an insurer's scope. Hourly billing is frequent for appraisers, engineers and consultants who advise without handling the whole claim. Ask whether there is a minimum fee and which expenses are charged separately.

• Percentage of total settlement
• Percentage of the increase obtained
• Flat fee per defined task
• Hourly rate for consulting or appraisal

Taxes and out-of-pocket costs

GST or HST applies to professional services depending on the province, with QST added in Quebec. Quotes should state clearly whether rates are before or after tax. Drone surveys, engineering reports, moisture mapping and travel to remote properties may be passed on at cost or included, and that choice can shift the real price significantly.

Can the insurance policy cover these fees?

Personal lines policies in Canada rarely reimburse public adjuster fees. Some commercial policies include a professional fees or claims preparation extension, typically capped and occasionally restricted to accountants, architects or engineers rather than contingency-based adjusters. Conditions may include prior written consent from the insurer.

Separately, the cost of an engineer or architect needed to design the actual repairs may form part of the insured repair cost. Make sure this is claimed as a repair item, not mixed into the adjuster's fee.

Illustrations by claim size

Small claim: hail damage to a roof estimated by the insurer at CAD 12,000, with a roofer quoting CAD 19,000. A minimum fee of, say, CAD 2,000 or 15 percent would absorb much of the gap; asking a roofer to meet the insurer's adjuster directly may be a better first step.

Medium claim: windstorm damage to roof, siding and interior finishes, settled at CAD 120,000. At 10 to 12 percent the fee would be about CAD 12,000 to 14,400 before tax.

Large claim: snow-load collapse of a commercial roof settled at CAD 2,000,000. A negotiated 5 percent means CAD 100,000; on an increase basis of 20 percent over a first offer of CAD 1,500,000, the fee would also be about CAD 100,000. These are illustrations, not predictions of any result.

Negotiating a fair engagement

Request written proposals from licensed public adjusters in your province and check licences with the regulator. Ask each firm how many building claims of comparable size they handled recently and who performs the estimate. A firm that subcontracts estimating may still be efficient, but you should know.

Negotiate the base before the rate. Exclude amounts already offered by the insurer before signing, emergency mitigation payments and the deductible. For large claims, a stepped rate that falls as the settlement grows is reasonable to request.

Red flags in contracts and promises

Be careful with door-to-door solicitation after storms, agreements that tie you to a specific contractor, undisclosed referral arrangements, or high cancellation fees. No adjuster can guarantee a full new roof or a specific settlement. A credible professional explains which arguments are strong, which are uncertain, and what evidence will be needed.

When the fee is most likely to pay for itself

Professional help tends to be cost-effective on building claims when the disagreement concerns the method of repair rather than unit prices: full versus partial roof replacement, replacement of whole elevations of siding for uniformity, structural reinforcement, or code upgrades that the insurer has not included. In those situations the gap between estimates can be large, and technical evidence is what closes it.

It is less likely to be worthwhile where the insurer's scope is broadly correct and the difference is limited to pricing, which a contractor can often discuss directly with the insurer's adjuster. Ask any adjuster you interview to give an honest view of the likely gap before you sign.

For building damage, a proportionate fee depends on how much of the scope is genuinely disputed. expertdassure.com also explains how building claims are assessed in Canada.