When a storm damages your home or business, you rely on your insurance company to help you recover. But what happens when the insurer disputes the damage, delays payment, or offers a settlement far below what it will cost to make you whole? For many Iowans, the answer is to hire a public adjuster – a licensed professional who works exclusively on behalf of policyholders, not insurance companies.
Public adjusters level the playing field. They review policy language, document losses, negotiate with the insurer, and ensure the claim is settled fairly. But in recent years, insurers have increasingly tried to strip consumers of the right to hire these advocates by inserting anti-public adjuster clauses directly into insurance policies.
The Iowa Association of Public Insurance Adjusters (IAPIA) believes every consumer should have the freedom to choose their own representation. That’s why one of our top priorities for 2026 is proposing new consumer-choice protections in Iowa law, including language that prohibits policies from blocking a policyholder from hiring a licensed public adjuster.
What Iowa Code §515.117 Says About Hiring A Public Adjuster
Today, Iowa Code § 515.117 is reserved, meaning it does not contain any active statutory provisions. That makes it the perfect place to add new consumer protections that are currently missing from Iowa law.
Consumer protections currently come from other sections of Iowa law, such as § 507B.4 (Unfair Claims Settlement Practices). Those laws say insurers must act fairly, but they don’t give hard deadlines or address the right to contract with public adjusters.
IAPIA’s draft proposal would transform § 515.117 into a safeguard for policyholders by spelling out the right to contract with a licensed public adjuster.
Our Proposed Changes To § 515.117
Our goal is to add new language to this currently blank section of the Code that would:
- Ban insurance policies from including anti-public adjuster clauses that prevent policyholders from hiring their own adjuster.
- Affirm a policyholder’s legal right to contract with a licensed public adjuster.
- Place public adjuster choice on equal footing with the insurer’s right to hire staff adjusters, independent adjusters, and attorneys.
This would make § 515.117 a home for consumer choice protections in the claims process.
Why This Matters
The proposed changes to § 515.117 would:
- Ban anti-public adjuster provisions. No policy insuring property in Iowa could contain a clause that prevents the insured from hiring a public adjuster.
- Affirm the right to representation. Consumers would have the clear legal right to contract with a licensed public adjuster of their choice.
- Bring balance back to the marketplace. Just as insurers can hire staff adjusters and attorneys to represent their interests, policyholders must retain the same freedom to hire their own professionals.
By enshrining this right in law, Iowa can ensure that homeowners, renters, farmers, and business owners are not forced to go toe-to-toe with insurance companies alone.
Correcting the Damage of SF 619 (SJ 678)
Recent legislative changes in Iowa, including SF 619, have reshaped parts of the post-loss claims landscape, particularly around how policyholders may assign benefits and how claims professionals are licensed and regulated. These changes underscore the importance of ensuring that consumers retain meaningful access to qualified representation of their choosing throughout the claims process. Protecting a policyholder’s right to hire a licensed public adjuster is a critical safeguard in a system that has grown increasingly complex, and it remains a key focus of IAPIA’s legislative efforts.
Real-World Impact
Ensuring all policyholders in Iowa have the ability to hire a public adjuster it critical to fair claim payments across every sector. Here are just a few examples:
The Family Homeowner: After hail damage, an insurer offers $15,000 for a roof replacement that contractors estimate will cost $25,000. A public adjuster documents the full damage, negotiates with the insurer, and recovers the additional $10,000 the family needs to restore their home.
The Small Business Owner: A fire damages a restaurant’s kitchen. Without a public adjuster, the owner would have accepted the insurer’s first offer, not realizing it excluded code-required upgrades. With professional advocacy, the business secures funds to rebuild properly and reopen.
The Farmer: Storm winds tear apart outbuildings and equipment. The insurer denies part of the claim citing vague policy exclusions. A public adjuster reviews the contract, challenges the denial, and ensures full coverage is honored.
These are not hypotheticals – they reflect the everyday value that public adjusters provide to Iowans. Protecting the right to hire one ensures these outcomes remain possible.
Why Your Support Is Crucial
The insurance lobby will oppose our proposed amendments. Why? Because public adjusters are effective at holding them accountable. By keeping consumers from hiring an advocate, insurers increase the likelihood of underpayments, delays, and denials going unchallenged.
IAPIA exists to make sure that doesn’t happen. But we can only do it with strong membership support. Here’s why you should join us:
- Every membership dollar funds our lobbying efforts. From drafting bills to testifying before committees, your dues directly power the fight for consumer rights.
- Strength in numbers matters. Legislators take notice when dozens of professionals show up united behind one message: protect the right to fair representation.
- You’re defending both consumers and your profession. Without the right to hire public adjusters, homeowners lose protection—and adjusters lose the ability to serve the very people who need them most.
Join Us in Protecting Consumer Choice
Insurance companies already have armies of adjusters and attorneys working for them. Iowa families deserve the right to hire their own professional to ensure fairness and accountability.
By amending § 515.117, we can guarantee that consumers, not insurers, decide who represents them in the claims process.
Join IAPIA Today and help us protect every Iowan’s right to hire a public adjuster. Together, we can ensure that policyholders always have a voice at the table.