Unraveling The Path To Becoming A Property Insurance Adjuster

A property claims adjuster is a specialist type of insurance inspector. Their role is to assess property damage, such as wind or flood damage to a building, and evaluate how much an insurance company should pay out based on the policy terms. To become a property claims adjuster, you'll need a high school diploma or GED certificate, and it's helpful to have prior experience in the insurance industry, though this isn't always required. In some states, you'll also need a license or certification. Other key skills for a property claims adjuster include analytical thinking, good communication skills, and a valid driver's license.

Verify that property insurance adjusting is right for you

Property insurance adjusting is a stable career with excellent earning potential. However, it is not for everyone. Here are some things to consider when deciding if property insurance adjusting is the right career path for you:

Hard and Soft Skills Required:

While the hard skills and qualifications necessary to become a property insurance adjuster are relatively simple—such as being at least 18 years old, holding a valid driver's license, and having a high school diploma or GED—it is the soft skills that set great adjusters apart. These include self-discipline, an excellent work ethic, strong communication skills, patience, empathy, and analytical thinking.

Challenging but Rewarding:

Property insurance adjusting is a challenging career that can be emotionally demanding. You will be dealing with people who have experienced property damage or loss, and it is your responsibility to inspect the damage, assess how much the insurance company should pay, and negotiate settlements. While it can be challenging, it is also rewarding as you will be helping people get back on their feet after a loss.

Always in Demand:

Property insurance adjusters are in high demand as they are needed to handle the steady stream of claims that come in daily. This means that you have the potential for job security and advancement. Additionally, independent claims adjusters can earn annual salaries in excess of $100,000, while staff adjusters typically earn salaries ranging from $45,000 to $80,000 or more.

The Challenge and Opportunity of Catastrophes:

In the event of a catastrophe, such as a hurricane or natural disaster, the demand for adjusters increases significantly. During these times, you may have the opportunity to earn more in a few months than you would typically earn in an entire year. However, you must be prepared to drop everything and work in challenging and dangerous environments.

The Future is Bright:

The property insurance adjusting industry is rapidly evolving, and employers are struggling to fill positions as a generation of adjusters retires. Additionally, the increasing number of damaging weather events means that the need for property insurance adjusters is only expected to grow.

Decide on your career path: staff, independent, or public adjuster

Deciding on your career path as a property insurance adjuster is a crucial step in pursuing this career. There are three main types of insurance adjusters to choose from: staff adjusters, independent adjusters, and public adjusters. Each option offers distinct advantages and considerations that align with different professional goals and work styles. Here's an overview of each career path to help you make an informed decision:

• Staff Adjuster: Staff adjusters, also known as company adjusters, are typically employed directly by an insurance company as full-time salaried employees. They receive benefits and often have opportunities for continuing education. Staff adjusters usually work for a single insurance company and represent the insurer's interests. This means they handle claims for that specific company and its clients. Staff adjusters commonly work on car accident cases but may also handle other types of claims, depending on their specialization. This career path offers stability and the chance to develop expertise within a particular organization and its policies.
• Independent Adjuster: Independent adjusters, also known as freelance adjusters, are self-employed contractors who work with multiple insurance companies or independent adjusting firms. They have more flexibility in choosing their clients and may work on a per-claim, hourly, daily, or adjuster fee schedule basis. Independent adjusters often handle catastrophe claims and travel to areas affected by major weather events or emergencies. This career path suits those who enjoy diverse work and the freedom of being their own boss. It provides the opportunity to build a network of clients and develop a range of skills applicable to different insurers.
• Public Adjuster: Public adjusters work for the policyholder or claimant rather than the insurance company. They are hired by individuals or businesses who believe they are not receiving a fair settlement from their insurance company. Public adjusters advocate for the policyholder and negotiate on their behalf to ensure they receive a fair outcome. Public adjusters are usually self-employed and work as independent contractors. This career path is ideal for those who want to help people navigate the complex world of insurance and ensure they get the compensation they deserve.

When deciding on your career path, consider your professional goals, desired work style, and the type of work that aligns with your interests and values. Each option offers unique advantages and will shape your day-to-day tasks, client interactions, and overall career trajectory. Understanding these distinctions will help you make a well-informed decision as you embark on your journey toward becoming a property insurance adjuster.

Get a high school diploma or GED

To become a property insurance adjuster, you'll need a minimum of a high school diploma or GED equivalent. A high school diploma is a certificate that shows you've completed all the required classes in a traditional high school setting. This route will usually take four years of full-time study.

The GED (General Educational Development Test) is an alternative for those who left high school early or who have other life responsibilities, like a full-time job or family commitments. The GED is a high school equivalency diploma made up of four exams: mathematical reasoning, science, language arts, and social studies. These exams can be taken at any time after the age of 16 and typically take seven hours to complete. Most people take less than a year to prepare for the GED.

While a high school diploma is the more traditional route, the GED is also widely accepted by colleges and employers. In fact, almost 100% of US schools accept the GED, and it can lead to a higher salary than a high school diploma. However, if you're considering a career as a property insurance adjuster, it's worth noting that some employers may prefer a degree in business or a related field, and most claims adjusters possess a college degree.

Take a pre-licensing course and pass the exam

To become a property insurance adjuster, you'll need to take a pre-licensing course and pass your state's licensing exam. Here's a step-by-step guide to help you through the process:

Step 1: Check Your State's Requirements

First, you'll need to determine if your state requires a license to practice as a property insurance adjuster. Most states have specific licensing requirements that must be met before you can work as an adjuster. Check with your state's Department of Insurance or a similar agency to find out the exact requirements for your state. Some states, like California, New York, and Hawaii, have additional rules such as requiring adjusters to be bonded.

Step 2: Complete a Pre-Licensing Course

Once you know your state's requirements, it's time to enroll in a pre-licensing course. These courses are designed to teach you the material you need to know to pass your licensing exam. Pre-licensing courses are offered by various organizations and can be taken online or in a classroom setting. They typically cover topics such as insurance basics, common policy provisions, claim adjustment procedures, and the role of the adjuster.

When choosing a pre-licensing course, look for one that is state-approved and has good reviews. The cost of pre-licensing courses can vary, but you can generally expect to pay between $100 and $500.

Step 3: Prepare for the Exam

The licensing exam is a crucial step in becoming a property insurance adjuster. Most states require a score of between 60% and 75% to pass. The exam is usually divided into two parts: a national section and a state-specific section. You must pass both parts to obtain your license.

Take advantage of exam prep resources offered by your pre-licensing course provider or other organizations. Practice exams, study guides, and interactive learning tools can help you feel more confident and improve your chances of passing on the first try.

Step 4: Pass the Licensing Exam

Now it's time to put your knowledge to the test! Schedule your exam and arrive prepared with proper identification and any required materials. Remember that you must pass both the national and state-specific sections of the exam.

Step 5: Apply for Your License

After successfully passing the licensing exam, you'll need to submit your application and any required fees to obtain your license. The application process and requirements may vary depending on your state, so be sure to review the instructions carefully.

Step 6: Pursue Continuing Education

To maintain your license, most states require you to complete continuing education credits periodically. This can be done by taking additional courses, attending workshops, or participating in employer-provided training sessions. Check with your state's licensing board to understand the specific requirements for maintaining your license.

Maintain your license with continuing education

Maintaining your license through continuing education is an important part of being a property insurance adjuster. The requirements for continuing education vary by state, so it's important to check with your state's specific guidelines. However, there are some general principles that apply in most states.

First, continuing education is necessary to stay current in your field and improve your performance. The insurance industry is constantly evolving, and continuing education courses can help you stay informed about industry changes and understand how they may affect your work. These courses typically cover a range of topics, including policy changes, new laws and regulations, customer service skills, claims handling, and fraud prevention.

Second, licensed insurance adjusters are generally required to complete a certain number of continuing education credits or hours every year or every licensing cycle. For example, in California, independent insurance adjusters and public insurance adjusters must complete a minimum of 24 hours of continuing education courses every license renewal term. In Texas, adjusters are required to complete 24 hours of continuing education, including 3 hours of ethics, every two years.

Third, you can typically complete continuing education courses online or in person through approved providers. These providers offer courses that cover various topics, such as insurance law, ethics, claims handling, and industry trends. It's important to select a reputable and accredited provider to ensure the quality of your education.

Finally, staying current with your continuing education requirements is essential to maintain your license and provide the best service to your clients. Failure to complete the required hours on time may result in penalties or even the suspension of your license.

Frequently asked questions