The Path To Becoming An Independent Insurance Adjuster: A Comprehensive Guide

Are you interested in a career in insurance adjusting? This line of work can be stable, rewarding, and well-paying. It's also a great choice for those who like the idea of freelancing.

Independent insurance adjusters are contracted by third-party, independent adjusting (IA) firms to investigate damage claims for insurance companies. This often happens when an insurance company's staff adjusters are overloaded or when claimants are in remote locations affected by natural disasters.

Here are the steps to become an independent insurance adjuster:

1. Meet the basic requirements: In the US, you need to be at least 18 years old, hold a valid driver's license, own your own vehicle, be able to read and write fluently in English, and be able to move about freely to accomplish tasks in various environments.

2. Decide if you need additional education: Most claims adjusters have a college degree, so an associate's, bachelor's, or master's degree can help you stand out. However, it's also possible to become an independent adjuster with just a high school diploma or GED, especially if you have previous work experience that has given you beneficial skills and knowledge.

3. Obtain your insurance adjuster license: Whether or not you need a license depends on the state where you live. If your state requires a license, you will need one to legally handle and close insurance claims. You should enroll in a preparatory course that can help you pass your state's licensing exam. You may also need to apply for reciprocal licenses in other states where you could work. Some IA firms may require you to have a license, regardless of your state's requirements.

4. Get some experience: Working as a staff adjuster or in another related role at an insurance company can give you valuable experience and help you build connections in the industry. Entry-level positions such as claims specialist can help you get your foot in the door and learn the claims process.

5. Build up the required skills: As an independent adjuster, you'll need skills such as self-discipline, project management, computer proficiency, excellent organization, attention to detail, record-keeping, time tracking, and invoicing.

6. Learn to use helpful tools: Depending on the types of claims you'll be addressing, you may need tools such as a mobile device with a high-quality camera, a Bluetooth laser distance meter, and a mobile floor plan app.

Becoming an independent insurance adjuster will take some time, effort, and dedication, but it can lead to a rewarding and in-demand career.

Meet basic requirements: 18+, driver's license, vehicle, English fluency

To become an independent insurance adjuster, you must meet some basic requirements. These include:

• Being at least 18 years old
• Holding a valid driver's license
• Owning a vehicle
• Being able to read and write fluently in English
• Being able to navigate and perform tasks in diverse settings

These prerequisites ensure that you are eligible to pursue a career as an independent insurance adjuster and are legally allowed to drive to various locations to assess and investigate insurance claims.

In addition to these basic requirements, certain soft skills can greatly benefit those seeking to become independent insurance adjusters. These include self-discipline, excellent work ethic, and strong communication skills.

Education Requirements

While there is no formal education requirement to become an independent insurance adjuster, most claims adjusters possess a college degree. A degree in a business or insurance-related field is generally preferred by employers. However, it is possible to become an independent adjuster with just a high school diploma or GED, especially if you have previous work experience that has equipped you with valuable skills and knowledge. Ultimately, the decision to pursue a degree is up to the individual.

State Licensing

Obtaining an insurance adjuster license is a crucial step in becoming an independent insurance adjuster. Whether or not you need a license depends on the state in which you live. If your state mandates licensing, you must secure one to lawfully manage and finalize insurance claims. To achieve this, consider taking a preparatory course designed to help you pass the state licensing exam. Remember that even if your state doesn't require licensing, obtaining a license can significantly enhance your employment prospects.

Building Skills

In addition to meeting the basic requirements and obtaining the necessary licenses, building certain skills will help you succeed as an independent insurance adjuster. These include self-discipline, project management, computer proficiency, excellent organization, attention to detail, record-keeping, time management, communication skills, investigative skills, critical thinking, and persistence.

Decide on further education: most adjusters have a degree

While there is no formal education requirement to become an insurance adjuster, most adjusters have a college degree. A college degree can help you stand out from other applicants and prepare you for your role.

A high school diploma or GED is the minimum requirement to become an insurance adjuster. However, employers increasingly seek candidates with a college degree in a relevant field of study. A degree is not always necessary, and it is possible to become an independent adjuster with just a high school diploma, especially if you have previous work experience.

If you decide to pursue a college degree, there are several fields of study that can prepare you for a career as an insurance adjuster. These include:

• Business and Management
• Computers and Technology
• Criminal Justice and Legal
• Liberal Arts and Humanities
• Nursing and Healthcare
• Psychology and Counselling
• Science and Engineering

In addition to a degree, it is also important to have strong communication, analytical, and critical thinking skills. These skills will help you effectively interact with clients, analyse information, and make informed decisions about insurance claims.

Ultimately, the decision to pursue a degree is up to you. However, a degree can provide you with valuable knowledge and skills that can enhance your career prospects and advancement opportunities in the insurance industry.

Get a license: check state requirements, take a course, pass the exam

The requirements for becoming a licensed insurance adjuster vary from state to state. While some states require adjusters to obtain a license, others do not. However, even if you live in a state that does not require licensing, obtaining a license is highly recommended as it significantly expands your employment opportunities.

Check State Requirements

The first step is to check the licensing requirements for your state. Most states (34 out of 50) issue their own licenses for claims adjusters. If your state mandates licensing, you must obtain one to legally handle and finalize insurance claims.

It is worth noting that some states, such as California and New York, do not offer reciprocity, meaning that if you want to process claims in those states, you will need to complete their specific requirements. Additionally, some states require adjusters to obtain a bond.

Take a Course

To prepare for the licensing exam, it is advisable to take a preparatory course designed to equip you with the knowledge needed to pass. These courses offer insight into the role of an adjuster and the insurance industry. Some states require you to take a pre-licensing course before sitting for the exam.

Pass the Exam

After completing the necessary coursework, you will need to pass the state's licensing exam. Most states require a score of between 60% and 75% to pass, and the exam usually consists of a national section and a state-specific section. You must achieve a passing score on both parts as the scores are not averaged.

Once you have passed the exam, you may need to complete additional steps, such as fingerprinting and background checks, before formally applying for your license. The application process and criteria vary from state to state, so be sure to check the specific requirements for your state.

Gain experience: work at an insurance company, build a network

Working at an insurance company is a great way to gain the necessary experience and knowledge to become a successful independent insurance adjuster. It provides you with an understanding of the industry, exposure to different claims processes, and valuable insights into the inner workings of the insurance world. Here are some steps to guide you in gaining this valuable experience:

Start by researching insurance companies in your area, including their reputation, size, and areas of specialization. Look for companies that offer a range of services, such as property, casualty, or liability insurance, to give you a well-rounded experience. Consider their market standing and financial stability, as this can impact the volume and variety of claims you'll be exposed to.

Once you've identified some potential insurance companies, reach out to them to inquire about job openings. Entry-level positions such as claims assistants, examiners, or processors can be a great way to get your foot in the door. These roles provide valuable experience in handling claims, understanding policies, and learning the administrative side of the business. Stay vigilant, as job opportunities can also be a great way to build a network within the industry.

While working at the insurance company, absorb as much knowledge as possible. Learn about different policy types, coverage limits, and the claims handling process. Understand the dynamics between the insurance company, the policyholder, and the adjuster. This knowledge will be invaluable when you transition to working as an independent adjuster. Take initiative and ask questions, seek additional responsibilities, and volunteer for projects that will enhance your skills and broaden your understanding of the field.

Network with colleagues and peers in the industry. Building relationships with experienced adjusters, supervisors, and insurance professionals can provide mentorship and support as you navigate your career path. Attend industry events, join relevant online communities or forums, and actively participate in discussions to make your presence known and build a positive reputation. These connections can offer advice, insider insights, and may even provide references or recommendations for your future endeavors as an independent adjuster.

Consider seeking a mentor within the insurance company who can guide your professional development. A mentor can provide personalized advice, share valuable lessons learned, and make introductions to other industry contacts. Their guidance can help you navigate career decisions, improve your skills, and enhance your overall experience in the insurance field. By taking advantage of learning opportunities, building a solid network, and gaining practical experience, you'll be well on your way to establishing a strong foundation for a successful career as an independent insurance adjuster.

Apply for an independent adjuster license

The requirements for an independent adjuster license vary depending on the state. Some states require pre-licensing education, while others don't. It's important to check with your state's specific requirements before applying. Here are the general steps to apply for an independent adjuster license:

• Complete pre-licensing requirements: If your state mandates it, complete the necessary pre-licensing education or training. This could be in the form of a pre-licensing course or work experience.
• Pass the licensing exam: Most states require candidates to pass a licensing exam. Make sure to prepare thoroughly for the exam by taking preparatory courses or studying the provided materials.
• Submit your application: After fulfilling the requirements, submit your licensing application, usually through an online portal or by mail. Include all the necessary documentation and pay the required fees. The application process and criteria differ from state to state.
• Wait for license issuance: Depending on the volume of applicants in your state, it may take several weeks or months to receive your license. Keep in mind that some states may require additional steps, such as fingerprinting or background checks, which can extend the processing time.
• Maintain your license: Once you obtain your license, ensure you meet all the requirements to keep it current. This may include continuing education credits, renewal fees, or other state-specific mandates. Stay informed about any changes in regulations to maintain compliance.

Choosing a Designated Home State (DHS)

If you live in a state that doesn't license insurance adjusters, such as Colorado, Ohio, or Pennsylvania, you can choose another state as your designated home state for gaining a license. Here are some popular choices for DHS licenses:

• Florida: Florida is a popular choice due to its quick application process, short adjuster exam, and high reciprocity with other states.
• Texas: Texas is another option for a DHS license, offering reciprocity with other states.
• Indiana: Indiana is also an option, though it may not have the same level of reciprocity as Florida or Texas.

Frequently asked questions