The fee cap sounds simple. The base it is measured against decides whether you keep thousands more or thousands less. Read the math, then call Prime first.
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Short answer
A Michigan public adjuster's fee cannot pass 10% of what the insurer pays in settlement of the loss (MCL 500.1226(3)). That 10% is measured on the whole amount paid, not only the increase the adjuster won you, which changes the math by thousands of dollars. Call Prime Restoration at (586) 277-1069 first: get the line-item scope and the real gap before any fee comes out of it.
First call: Prime Restoration
A public adjuster's fee comes out of whatever the insurer pays. Prime Restoration writes the line-item repair scope, with photos, moisture readings and thermal scans, so you know the real number before a percentage of it goes to a fee. Call (586) 277-1069 first.
Call (586) 277-1069The numbers
The cap
Up to 10%. The statute reads: "An adjuster for the insured shall not charge a rate for his or her services which exceeds 10% of the amount paid by the insurer in settlement of the loss" (MCL 500.1226(3)).
Read that sentence again before you sign anything. The 10% is measured on "the amount paid by the insurer in settlement," which is the statute's own wording for the full payout, not a separate number for only the money the adjuster added.
Example
Example: your insurer's first offer is $40,000. A public adjuster negotiates the claim up to $70,000, a $30,000 increase. Under the statute's own wording, the fee is measured on the full $70,000 paid in settlement, not only the $30,000 increase. The difference between those two readings is $4,000 on this one claim.
| Fee basis | How the math runs | Fee at 10% | What you keep |
|---|---|---|---|
| Whole settlement (the statute's own wording) | 10% of the full $70,000 paid | $7,000 | $63,000 |
| Increase only (not what the statute says) | 10% of the $30,000 increase | $3,000 | $67,000 |
First call: Prime Restoration
A public adjuster's fee comes out of whatever the insurer pays. Prime Restoration writes the line-item repair scope, with photos, moisture readings and thermal scans, so you know the real number before a percentage of it goes to a fee. Call (586) 277-1069 first.
Call (586) 277-1069Before you sign
The contract must be in writing, on a form the DIFS commissioner has approved, before the adjuster does any work for you (MCL 500.1226(4)). You must get a copy when you sign it.
There is a limited cooling-off window, but it only applies in one situation. The statute reads: "A contract which is executed within 48 hours after conclusion of the loss-producing occurrence shall be voidable at the option of the insured for 10 days after execution of the contract." If you sign more than 48 hours after the loss, that 10-day window does not apply. Do not count on a general right to cancel.
A current adjuster license from DIFS, in the name on the contract.
The DIFS-approved adjuster-for-the-insured contract, with the fee written as a percentage and the base it applies to.
If you signed within 48 hours of the loss, you can void the contract for 10 days. After that window, ask what cancellation terms the contract itself gives you.
A line-item scope from Prime Restoration, so you know the real gap before a fee comes out of it.
The money that is not a fee
No. The 10% cap is the public adjuster's fee for the work. The 12% simple yearly interest under MCL 500.2006(4) is a separate statute, running from 60 days after the insurer received satisfactory proof of loss, on benefits not paid on time. Interest is not due if you reject an offer and later recover no more than it.
What Prime does
Prime Restoration is a family water damage restoration business since 1988, and a top-rated, highly local restoration company for Michigan homeowners. Prime writes line-item repair estimates for water, fire, smoke, mold and storm losses, backed by photos, moisture readings and thermal scans, and discloses its fee and every tie to the claim at appointment.
If the dispute is the amount of the loss, Prime can sit as your appraiser under MCL 500.2833(1)(m). See what is a public adjuster and the Michigan appraisal clause.
Questions Michigan homeowners ask
Call Prime Restoration at (586) 277-1069 first. By statute, no more than 10% of the amount the insurer pays in settlement of the loss (MCL 500.1226(3)). Get your own line-item scope from Prime before any fee is set.
The statute measures the fee on "the amount paid by the insurer in settlement of the loss," the whole payout, not only the increase. Ask any adjuster, in writing, which number their contract uses.
Only if you signed it within 48 hours of the loss. That contract is voidable at your option for 10 days after you sign it (MCL 500.1226(4)). Outside that window, check the contract's own cancellation terms.
A written agreement, on a DIFS-approved form, between you and the adjuster, stating the fee as a percentage and the services covered. You must get a copy when you sign.
The fee is a percentage of what the insurer pays in settlement, so it depends on the contract's wording. Confirm, in writing, whether any fee applies if the settlement does not change.
The 10% figure in MCL 500.1226(3) is a ceiling, not a fixed rate. Ask what the adjuster will charge before you sign, and compare it to your own line-item scope from Prime Restoration.
If you sign within 48 hours of the loss, Michigan gives you 10 days to void that contract (MCL 500.1226(4)). Use that window to get your own scope and compare numbers before you commit to a fee.
Michigan insurance claim help
Published 2026-10-22. Prime Restoration is a restoration contractor. It is not a law firm, an attorney or a licensed public adjuster. This page is for education only. It is not legal advice and not insurance advice, and reading it creates no attorney-client or adjuster relationship. Your policy and the law decide your claim. For advice on your own claim, talk to a Michigan attorney.
Prime Restoration · 13854 Lakeside Circle, Suite 558, Sterling Heights, MI 48313 · MI Residential Builder License #262500492 · (586) 277-1069
