What is a Public Adjuster?

A Public Adjuster is someone who helps you with your insurance claim after something like a fire, storm, or water damage happens. They work for you—not the insurance company—to make sure you get the money you deserve to fix the damage.

What’s the difference between a Public Adjuster, Company Adjuster, and Independent Adjuster?

A Public Adjuster works for you and helps you with your claim. A Company Adjuster works for your insurance company and looks out for their interests. An Independent Adjuster is hired by the insurance company but isn’t one of their employees. They still work for the insurance company, not for you.

What should I give my Public Adjuster to help with my claim?

To make things go smoothly, give your Public Adjuster: a full copy of your insurance policy (or at least the Declarations Page), receipts or bills for any repairs you’ve done, and photos or videos showing the damage.

How can a Public Adjuster help me?

Insurance claims can be confusing. A Public Adjuster knows what to do—from filling out paperwork and meeting deadlines to talking with your insurance company. They take care of everything so you don’t have to stress. Most of the time, they also help you get more money than you would on your own.

How much does it cost to hire a Public Adjuster?

Most Public Adjusters don’t charge upfront. Instead, they get paid a percentage of the money they recover for you. For example, in Florida, the fee is usually up to 20%, but only 10% if it’s after a big storm. In Texas, the fee is usually 10%. This setup makes sure they work hard to get you the most money, as quickly as possible.

What’s the difference between hiring a Public Adjuster and an Attorney?

Public Adjusters help right from the start: documenting the damage, making estimates, and talking with your insurance company. If they can’t get the job done, then you might need to hire an Attorney. Public Adjusters usually finish claims in 1 to 4 months. If you bring in an Attorney, it could take a year or longer.

Can a roofer or contractor help me the same way a Public Adjuster can?

No. Roofers and contractors can help fix your home and give estimates, but they can’t talk to your insurance company about your coverage or argue for more money. Only Public Adjusters and Attorneys are allowed to do that. A Public Adjuster can handle your whole claim, start to finish.

How long does a claim take with a Public Adjuster?

Most claims handled by a Public Adjuster are finished in 1 to 4 months. Insurance companies have up to 90 days to look into the claim. The Public Adjuster keeps things moving and pushes to get it done fast. If it takes longer, you might need an Attorney to step in.

What’s the difference between doing a claim myself and hiring a Public Adjuster?

You can do the claim on your own, but it’s hard if you don’t know all the rules and steps. Public Adjusters are trained pros who know how to get the most money. People who hire them often get 50% to 500% more than those who go it alone.

Where do I find my policy or claim number?

You can find it on the Declarations Page, which is usually the first page of your insurance policy. It also has your coverage details, deductible, and contact info for your insurance agent. If you don’t have it, call your Insurance Agent or Company to get a copy.

Are Insurance Proceeds for Property Damage Taxable?

Mar 5

Written By Drew Miles

Florida Public Adjuster - Shoreline Public Adjusters

Are Insurance Payouts for Property Damage Taxable? The Truth You Need to Know

If your home or business has ever taken a hit—from a hurricane, fire, burst pipe, or some other costly mess—you know how stressful it can be to file an insurance claim. But once that check arrives, there’s a nagging question that pops up more often than not: “Is the money I received going to be taxed?”

The short answer? Usually no. But, as with most things involving taxes, there are some important exceptions and caveats.

Let’s break this down clearly, using real-world examples and straightforward explanations.

So, What Exactly Are Insurance Proceeds?

When you file a claim after damage to your property and your insurer cuts you a check, that money is called insurance proceeds. It’s not a bonus or a prize—it’s meant to help you restore what you lost.

Say a tree crashes through your roof, and your policy pays out $20,000 to replace it. That $20,000 isn't "income" the way your paycheck is. You didn’t profit—you broke even. So, in the IRS’s eyes, that payment usually isn’t taxable.

When the IRS Leaves You Alone

As a rule of thumb: if the money is spent on repairs or replacement and doesn’t leave you financially better off than you were before the loss, there’s generally no tax to pay.

Let’s say:

Hail shreds your siding.
The insurance company sends you $12,000.
You spend $12,000 to replace it.

That’s a straight reimbursement. No gain, no tax.

When the IRS Might Come Knocking

The taxman only gets involved when insurance money starts looking like a financial gain. That can happen in a few scenarios:

1. You pocket the cash instead of fixing the property.

Example: You get $25,000, spend $15,000 on a patch job, and keep the extra $10K. That extra could be taxable.

2. Your payout exceeds what the property was worth (its adjusted basis).

If you bought the property for $100,000, and your insurance payout is $120,000 after a total loss, the extra $20,000 could be seen as a capital gain.

3. You previously claimed a tax deduction for the loss.

If you wrote off a casualty loss in a past year, and now get reimbursed by insurance, you might owe tax on part or all of that payment.

If You Own Rental or Business Property

The rules shift if your damaged property wasn’t your primary residence. Businesses and landlords need to be more careful.

Lost Income? Taxable. If your policy includes business interruption or lost rental income coverage, that money typically counts as taxable income. That’s because it’s replacing revenue, not property.

Repairs and Replacements? Maybe Not. If you use insurance proceeds to repair a commercial building or rental, that usually isn’t taxable—as long as you reinvest it into similar property. But hold onto that money or delay too long, and you could face taxes down the road.

Quick Glance: Other Insurance Payouts

Life Insurance: Usually tax-free for beneficiaries.
Disability Payments: Generally not taxed if you paid the premiums with after-tax dollars.
Health Insurance: Reimbursements for doctor bills, surgery, etc., are not taxable.
Business Interruption Coverage: Taxable, since it's considered income replacement.

How to Stay on the Right Side of the Tax Code

You don’t need to be a CPA to protect yourself, but here are a few smart moves to make:

Know your numbers. Understand the cost of repairs, the value of your property, and what your insurer actually paid.
Save everything. Keep receipts, estimates, and all communication from contractors and your insurance company.
Check your past returns. If you deducted a loss in the past, that could impact how your payout is taxed.
Don’t guess. If the payout was large or your situation is complicated, run it by a tax professional.

Wrapping It Up

Most of the time, if your insurance check is going straight into repairs or replacement, there’s no tax bill waiting. But if you end up ahead, have business or rental property, or previously claimed deductions, things get more complex.

At Shoreline Public Adjusters, we help clients in Minnesota, Wisconsin, and Florida not only maximize their insurance claims—but avoid missteps that could create tax headaches later. Whether you’re repairing storm damage or rebuilding after a total loss, we’re here to guide you through it.

Have questions about an insurance claim? Reach out to us here. Let’s make sure you get what you deserve—without any surprises from the IRS.

📞 Call us today (954-546-1899) or fill out our contact form: Shoreline Public Adjusters Contact Page

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Protect your investment—get the expert representation you need before time runs out!

Local Service Areas: Florida (FL), Minnesota (MN), Wisconsin (WI)

Help with Your Claim

Shoreline Public Adjusters, LLC
780 Fifth Avenue South
Suite #200
Naples, FL 34102

Email: hello@teamshoreline.com
Phone: 954-546-1899
Fax: 239-778-9889

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Drew Miles