What you are paying for on a property loss
On a commercial property claim the expert's work starts with the policy: valuation basis, sums insured by location, sub-limits for debris removal, professional fees and code upgrades, and the conditions on reinstatement. They then inspect the damage, often with builders and surveyors, and build a detailed claim for buildings, contents, plant and stock.
Much of the effort goes into evidence and negotiation: priced scopes of work, inventories, salvage discussions, meetings with the insurer's adjuster and quantity surveyor, responses to requests for information and the follow-up of progress payments during reinstatement. On a large rebuild, that follow-up can last as long as the works.
- Policy and schedule review, including sub-limits
- Inspection, photographic record and scope of works
- Valuation of building, contents, plant and stock
- Negotiation with the adjuster and surveyors
- Monitoring of payments during reinstatement
A sliding scale of indicative fees
No official tariff exists for policyholder experts in the UK, US, Canada, Australia or Ireland. The table on this page is an indicative order of magnitude observed on the market, not an official or legal scale. It shows how percentages usually decrease as the settlement grows, which reflects economies of scale on large losses.
In the United States, public adjusters are licensed by individual states and several states cap the percentage they may charge, Florida being a frequently cited example, particularly for claims following declared emergencies. Elsewhere, fees are generally a matter of contract, subject to consumer protection and conduct rules.
| Settlement amount (GBP / USD approx.) | Indicative fee as % of settlement | Comment |
|---|---|---|
| Up to 25,000 | 12% to 15% | Minimum fee often applies |
| 25,001 to 100,000 | 10% to 12% | Percentage on total or uplift |
| 100,001 to 250,000 | 8% to 10% | Standard sliding scale |
| 250,001 to 500,000 | 7% to 8% | Scale often negotiable |
| 500,001 to 1,000,000 | 5% to 7% | Cap may be agreed |
| 1,000,001 to 5,000,000 | 3% to 5% | Bespoke scale, specialists itemised |
| Over 5,000,000 | 1% to 3% | Bespoke, often capped or hybrid |
Indicative amounts, to be checked with each expert.
Three bases for the percentage
The percentage can apply to the total settlement, to the amount paid after the expert's appointment, or only to the increase obtained over the insurer's initial position. These bases can lead to very different invoices for the same nominal rate. Ask the firm to state the base in plain words and to illustrate it with a figure close to your own.
Fixed fees are sometimes offered for well-defined losses, for example a single-category stock claim, while hourly or daily rates are used for advisory work, a review of the insurer's offer or support in appraisal and expert determination.
Retainers are less common on property claims than on business interruption, but they do appear on very large or multi-site losses where the expert must commit a team for many months. In that case, the retainer is often credited against a reduced success fee at settlement, so the overall cost remains linked to the outcome while the firm's time is secured from the start.
Extra charges to look out for
Beyond the main fee, check for minimum fees, VAT or GST, travel and accommodation on remote sites, and charges for specialists such as structural engineers, building surveyors, stock valuers or salvors. Some firms include these in their percentage, others pass them through at cost or with a handling margin. Each approach can be fair, but it must be written down.
Policy cover for professional fees
Commercial property wordings commonly include professional fees cover, but it normally relates to architects, surveyors and engineers needed for reinstatement, not to the advocacy of the policyholder's representative. Some policies also include a claims preparation costs clause with a fixed limit, which may contribute to the cost of producing the claim.
Insurers are usually strict on these clauses. The policyholder should expect that most of a public adjuster's or loss assessor's fee will be borne by the business, unless the wording clearly states otherwise. Asking the broker to confirm the position in writing before appointing an expert avoids surprises.
Fees across small, mid-sized and major losses
For a small loss, such as £25,000 of water damage to an office fit-out, a percentage of 12% to 15% would be in the order of £3,000 to £3,750. At this level, it is worth asking whether the insurer's offer is genuinely inadequate before appointing anyone.
For a mid-range claim of around £300,000 after a fire in a light industrial unit, a sliding fee around 8% to 10% suggests £24,000 to £30,000. On a loss of £5 million or more, with full rebuild and stock, the rate may fall to 2% to 4%, but the monetary sum remains significant and is often negotiated with a cap.
Illustration with an uplift-based fee
Imagine the insurer offers £1.2 million on an indemnity basis and the expert secures £1.55 million on a reinstatement basis after proving that rebuilding is underway. A 5% fee on the total gives £77,500; a 15% fee on the £350,000 increase gives £52,500. These examples are illustrative only and do not predict any outcome.
Choosing and negotiating with a firm
Compare at least two or three firms, focusing on experience with your type of building and activity, availability for site meetings and the quality of written claim submissions. Request references and confirm licensing or authorisation where relevant. A cheap proposal from an inexperienced firm can cost more than a higher fee from a specialist.
Treat promises of guaranteed results with caution. No expert can guarantee a settlement amount; a professional will explain the main issues and the range of possible outcomes instead. Negotiate the rate, a cap on fees for very large outcomes and clear termination terms before signing.
- Written fee base, rate, minimum and cap
- List of included and excluded services
- Specialists' costs and how they are billed
- Fees on payments received before appointment
- Notice period and fees on early termination
Organisations offering this service
- Financial Ombudsman Service: Official free dispute resolution service in the United Kingdom, handling complaints from policyholders against insurers, including disputed or rejected insurance claims.
- Chartered Institute of Loss Adjusters (CILA): Chartered UK professional body for claims and loss adjusting professionals, responsible for training, qualifications and standards across the claims profession.
- Aspray: UK network of loss assessors handling and negotiating insurance claims on behalf of policyholders, notably after fire, flood and escape-of-water damage.
- NAPIA – National Association of Public Insurance Adjusters: US professional association of public adjusters, founded over 75 years ago, offering a directory to find a member public adjuster near you.
External links provided for information only; check the terms directly with each organisation.
Frequently asked questions
Does the insurer pay my public adjuster?
Generally not. Professional fees cover in property policies usually relates to reinstatement professionals. Some wordings include limited claims preparation costs, but advocacy fees mostly remain with the business.
What percentage do public adjusters charge on commercial claims?
Rates vary by country, state, size and complexity. Sliding percentages from low double digits on small claims down to a few percent on very large ones are commonly observed, but they are not official.
Can I negotiate the fee?
Yes. Rate, base, minimum and cap are all negotiable, particularly on larger losses. Ask for proposals in writing and compare them on the same scenario.
A fair fee is one that is clearly explained, proportionate to the work and tied to a realistic view of what can be recovered. Learn more about the expert's role on commercial losses at expertdassure.com.