Flood Of Opportunities: A Guide To Becoming A Flood Insurance Adjuster

Flood insurance adjusters are in high demand, especially after natural disasters like hurricanes. To become a flood insurance adjuster, you must first obtain an adjuster license. Then, you can apply for an independent flood certification number (FCN) through the National Flood Insurance Program (NFIP), which is the insurance arm of the Federal Emergency Management Agency (FEMA). To be certified by the NFIP, you must meet certain requirements, including having at least four years of full-time property loss adjusting experience and being able to prepare accurate damage and dollar estimates. Alternatively, you can participate in a mentorship program offered by designated independent adjusting firms, which will train and certify you to work in the industry.

To become a flood insurance adjuster, you must register with the National Flood Insurance Program (NFIP)

To register with the NFIP, you must complete the Adjuster Registration Application. This application includes five types of registration: Residential (Dwelling), Manufactured (Mobile) Home/Travel Trailer, Small Commercial (General Property), Large Commercial (General Property), and Condominium (RCBAP). The requirements for each category are as follows:

Residential, Commercial, and Manufactured (Mobile) Homes Registration:

• Have at least 4 consecutive years of full-time property loss adjusting experience.
• Be capable of preparing an accurate scope of damage and dollar estimate to $50,000 for manufactured (mobile) homes and to $500,000 for residential and commercial losses.
• Have attended an NFIP workshop and be able to demonstrate knowledge of the SFIP and of NFIP adjustment criteria for all policy forms.
• Be familiar with manufactured (mobile) home and Increased Cost of Compliance adjusting techniques.

Large Commercial and RCBAP Registration:

• Have at least 5 consecutive years of full-time large-loss property adjusting experience.
• Be capable of preparing an accurate scope of damage and dollar estimate of $500,000 or more.
• Submit written recommendations from three insurance company supervisory or claim management personnel. The recommendations must reflect adjusting experience only.
• Provide information regarding current Errors and Omissions coverage.

Once you have submitted your Adjuster Registration Application and it has been approved, you will be assigned a unique identifier known as a Flood Control Number (FCN). This number will be included on your FCN card.

In addition to registering with the NFIP, you must also complete certain training courses to become a certified flood adjuster. The NFIP offers free online courses through the FEMA Emergency Management Institute Independent Study Program. These courses cover basic and specialized claims topics, as well as general flood insurance topics. While these courses are not approved for continuing education (CE) credit, they are essential for adjusting NFIP claims.

The following is a list of recommended courses for flood insurance adjusters:

• NFIP Claims Review for Adjusters (IS-1104)
• Adjuster Customer Service (IS-1107)
• Introduction to Flood Claims (IS-1112)
• Understanding Basement Coverage (IS-1109)
• Introduction to Commercial Claims (IS-1111)
• Insuring Condominiums (IS-1108)

In addition to the online courses offered by FEMA, there are also in-person workshops and live webinars available. To stay up to date with the latest training opportunities, you can sign up for NFIP Training Bulletins.

It is important to note that becoming a certified flood adjuster requires a significant amount of experience and training. However, there are mentorship programs available, such as the NFIP Mentor Program, that can help you gain the necessary skills and knowledge to succeed in this field.

You must also possess an active Flood Control Number (FCN)

To adjust flood losses for the National Flood Insurance Program (NFIP), independent adjusters must possess an active Flood Control Number (FCN). The FCN is a unique identifier assigned to each adjusting firm and adjuster trainee by the NFIP.

To obtain an FCN, you must first register with the NFIP by submitting the Adjuster Registration Application. This application can be found on the official website of the United States government. Once registered, you will be issued an FCN, which must be renewed annually.

It is important to note that, in addition to possessing an active FCN, independent adjusters must also meet certain qualifications and requirements to be approved for handling NFIP claims. These requirements include having a minimum number of years of full-time property loss adjusting experience, being capable of preparing accurate damage and dollar estimates, attending NFIP workshops, and demonstrating knowledge of NFIP policies and adjustment criteria.

By possessing an active FCN and meeting the necessary qualifications, independent adjusters can be certified by the NFIP to handle flood claims, which are often complex and require specialized knowledge.

You need at least four years of full-time property loss adjusting experience

To become a flood insurance adjuster, you need at least four years of full-time property loss adjusting experience. This extensive experience is necessary to develop the skills and knowledge required to accurately assess and estimate property damage caused by flooding. This includes the ability to prepare a detailed scope of damage and provide dollar estimates for repairs or replacements.

Obtaining this hands-on experience is crucial for becoming a successful flood insurance adjuster. It equips you with the expertise needed to handle various scenarios and make informed decisions when evaluating flood-damaged properties. This experience also ensures that you are familiar with the unique challenges and complexities associated with flood insurance claims.

During these four years, it is essential to gain experience in different types of property loss adjusting. This includes working on residential, commercial, and manufactured (mobile) home losses. Each property type presents distinct challenges and requires a nuanced understanding of construction, damage assessment, and repair or replacement processes.

To certify as a flood insurance adjuster, you must also demonstrate your proficiency in specific areas. This includes demonstrating knowledge of the Standard Flood Insurance Policy (SFIP) and National Flood Insurance Program (NFIP) adjustment criteria. Additionally, familiarity with manufactured (mobile) home and Increased Cost of Compliance (ICC) adjusting techniques is crucial.

These requirements ensure that flood insurance adjusters have the necessary skills and expertise to handle flood insurance claims effectively and provide accurate assessments and estimates. This experience forms the foundation for a successful career as a flood insurance adjuster, enabling you to serve policyholders with confidence and professionalism.

You must be able to prepare an accurate scope of damage and dollar estimate

To become a flood insurance adjuster, you must be able to prepare an accurate scope of damage and dollar estimate. This is a crucial skill for insurance adjusters, as it directly impacts the settlement amount the policyholder will receive.

A scope of loss is a document or set of documents and measurements that describe the type and amount of damage done to a structure. It also includes the quantity and quality of materials, as well as the current cost of labour and materials needed to repair or rebuild the structure.

• Understand the purpose of a scope of loss: A scope of loss is different from an estimate in that it provides more detailed information. It is typically more detailed and includes photos, diagrams, and a breakdown of costs by construction trades and materials. The goal of a scope of loss is to describe all the damage, specify the work needed to comply with local building codes, and determine the costs to restore the property to its pre-loss condition.
• Describe the pre-loss property: To create an accurate scope of loss, you need to gather as much information as possible about the property before the loss occurred. This includes details such as room dimensions, types of finishes in each room (e.g., paint, flooring, molding), and any improvements or renovations made to the property. You can obtain this information from various sources, including real estate documents, building plans, appraisal reports, and photos.
• Use the right tools: Many insurance adjusters use specialised software like Xactimate to prepare scopes of loss and estimates. Familiarise yourself with the software to ensure you are using it effectively and inputting complete and accurate information.
• Conduct a thorough inspection: When assessing the damage, pay attention to all aspects of the property. Look beyond the rooms where damage is apparent and consider damage to different systems of the home, such as HVAC or plumbing. Take measurements and document all relevant details to create a comprehensive scope of loss.
• Include all necessary costs: In addition to the cost of materials and labour, remember to include "soft costs," such as architect fees, permits, and insurance. Also, consider waste factors, contractor overhead and profit (OH&P), and market conditions that may impact material and labour costs.
• Verify and review: Double-check your scope of loss for accuracy and completeness. Compare it to the insurance company's scope of loss or estimate to identify any discrepancies or missing items. Don't be afraid to ask questions and seek clarification from the insurance company or other professionals.
• Consider hiring a public adjuster: If you feel overwhelmed or unsure about preparing a scope of loss, consider hiring a public adjuster. They are licensed professionals who work on behalf of policyholders and can assist with evaluating property loss, filing claims, and negotiating with insurance companies.

You must attend an NFIP workshop and demonstrate knowledge of the SFIP

To become a flood insurance adjuster, you must attend an NFIP workshop and demonstrate knowledge of the SFIP. The National Flood Insurance Program (NFIP) is the insurance arm of the Federal Emergency Management Agency (FEMA). It was created in conjunction with the National Flood Insurance Act of 1968 following the devastation of Hurricane Betsy.

The NFIP Adjuster Certification Requirements are broken down into two general groups: Residential, Commercial, and Manufactured (Mobile) Homes Registration; and Large Commercial and RCBAP Registration.

To be approved for the former, an adjuster must:

• Have at least 4 consecutive years of full-time property loss adjusting experience.
• Be capable of preparing an accurate scope of damage and dollar estimate to $50,000 for manufactured (mobile) homes and to $500,000 for residential and commercial losses.
• Have attended an NFIP workshop and be able to demonstrate knowledge of the SFIP and of NFIP adjustment criteria for all policy forms.
• Be familiar with manufactured (mobile) home and Increased Cost of Compliance adjusting techniques.

To be approved for the latter, an adjuster must:

• Have at least 5 consecutive years of full-time large-loss property adjusting experience.
• Be capable of preparing an accurate scope of damage and dollar estimate of $500,000 or more.
• Submit written recommendations from three insurance company supervisory or claim management personnel. The recommendations must reflect adjusting experience only.
• Provide information regarding current Errors and Omissions coverage.

The NFIP offers educational courses for claims professionals. These courses are approved as 2024 NFIP Claims Adjuster Presentations for 6 hours of continuing education credit in select states. The courses are not approved for continuing education (CE) credit by any State Department of Insurance.

NFIP offers free online courses through the FEMA Emergency Management Institute Independent Study Program covering basic and specialized claims topics, as well as courses in general flood insurance topics which may be of interest to claims adjusters.

Frequently asked questions