Unraveling The Path To Becoming An Insurance Adjuster

Becoming an insurance adjuster is a relatively simple process that can be completed in just a few weeks. It is a stable career with excellent earning potential, and insurance adjusters are typically in high demand. The role involves overseeing every aspect of the claims process, including investigating claims to determine an insurance company's liability and deciding on a fair settlement amount.

To become an insurance adjuster, you must first complete the minimum education requirements, which is a high school diploma or GED equivalent. Next, you must decide on the type of adjuster you want to be, such as a staff, independent, or public adjuster. After that, you will need to take and pass an insurance licensing exam, which may require completing a pre-licensing course. Maintaining your license through continuing education credits or regular license renewal is also important.

Other key skills for insurance adjusters include communication, computer proficiency, and time management.

Verify insurance adjusting is for you

Insurance adjusting is a stable industry with excellent earning potential, but it is not for everyone. If you are considering a career as an insurance adjuster, there are some key things you should know before getting started.

Firstly, insurance adjusters play an important but often unnoticed role in the insurance industry. They are responsible for overseeing every aspect of the claims process, including investigating claims, determining an insurance company's liability, and deciding on a fair settlement amount. This can involve interviewing claimants and witnesses, reviewing relevant reports and documentation, and notifying all affected parties of the claims decision.

One of the main attractions of a career in insurance adjusting is the high demand for adjusters and the excellent earning potential. Insurance adjusters are always in demand as claims remain steady regardless of economic factors. Independent claims adjusters can earn annual salaries in excess of $100,000, while staff adjusters typically earn between $45,000 and $80,000.

In addition, insurance adjusting offers the flexibility to choose between working as a staff adjuster for an insurance company or as an independent contractor for multiple insurance companies or firms. This allows you to decide whether you prefer a steady 9-to-5 job or the freedom to choose when and how much you work.

However, it's important to note that insurance adjusting can be challenging. In addition to strong investigative and analytical skills, adjusters need excellent soft skills such as self-discipline, a strong work ethic, and great communication skills. They must also be able to handle the emotional aspects of the job, such as dealing with individuals who have experienced a loss or natural disaster.

Another factor to consider is the licensing requirements. Most states require insurance adjusters to obtain a license, which typically involves passing an exam and maintaining the license through continuing education credits. It's important to research the specific requirements for your state or any state you plan to work in.

Overall, a career in insurance adjusting can offer a rewarding and challenging work environment, strong earning potential, and the flexibility to choose your career path. If you are detail-oriented, have strong interpersonal skills, and are comfortable with investigative work, insurance adjusting may be a great fit for you.

Choose your adjuster type

There are several types of insurance adjusters, and it's important to choose the right one for you. Here are the four most common types:

• Staff Adjuster: Staff adjusters work directly for a single insurance company as full-time salaried employees and receive benefits. They handle claims only for that insurer and are usually hired as full-time employees. This is the most well-known type of insurance adjuster, and they commonly work on auto insurance claims.
• Independent Adjuster: Independent adjusters are self-employed contractors who work for multiple insurance companies or third-party organisations. They are typically hired directly by insurance companies to investigate claims and make decisions. They often handle catastrophe-related claims and may need to travel to affected areas.
• Public Adjuster: Public adjusters work directly for policyholders or customers, not insurance companies. They are hired when a person or business believes their insurance settlement is unfair or inadequate. They are usually self-employed and paid a percentage of the claim amount as a commission.
• Catastrophe Adjuster: Catastrophe adjusters can be either staff or independent, and they travel to areas affected by major events or natural disasters to handle claims. They are "on-call" and must be ready to deploy at a moment's notice. This role can be challenging, with long hours and tough conditions, but it offers the opportunity to earn a significant income in a short period.

Other types of adjusters include inside or desk adjusters, who handle claims from an office or call centre, and field adjusters, who go out into the field to handle all aspects of the claim, including inspecting damages and gathering information.

When choosing your adjuster type, consider your preferred work style, whether you want to work for an insurance company or independently, and the specific area of insurance claims that interests you.

Get your license

The requirements for an insurance adjuster license vary depending on the state. Some states do not require a license to practice, such as Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts. However, most states do require a license, and many employers will only deploy licensed adjusters.

If you live in a state that does not require licensing, it is still recommended that you obtain a Designated Home State (DHS) license. This will allow you to work outside of your state and obtain reciprocal state licenses without needing to pass another exam. The DHS license works by allowing you to designate a licensing state as your home state. Florida is the most recommended state for this, as it has the quickest application process, a relatively short exam, and good reciprocity. Texas is also a good option, as both states allow you to take the pre-licensing course and exam online.

If you live in a state that does require licensing, you must obtain your home state license first. You will then be able to apply for reciprocal licenses in other states. To obtain your home state license, you will need to take and pass a licensing exam. To qualify for the exam, you may first need to complete a pre-licensing course. These are available both in-person and online.

Learn essential skills

To become an insurance adjuster, you will need to develop a wide range of essential skills. These can be broadly categorised into hard skills and soft skills.

Hard skills refer to technical knowledge and qualifications, such as proficiency in industry-specific software and tools, while soft skills relate to interpersonal abilities and character traits that enable effective interaction with others.

Hard Skills

• Proficiency in industry-standard claims writing software, such as Xactimate, is critical for success in this field. Xactimate is the industry-leading software used by adjusting firms, and you will need to learn it to close claims successfully.
• State Farm Certification is often required to work on claims for specific insurance companies.
• Computer proficiency, including typing, using a mouse, and navigating Windows-based programs, is essential.
• Knowledge of construction/engineering to understand the makeup of the properties being investigated.
• Understanding of insurance policies to interpret and apply them within the context of specific claims.

Soft Skills

• Excellent communication skills are vital, as adjusters deal with people from various backgrounds, often in challenging circumstances like natural disasters. Adjusters should be respectful, patient, and professional in their interactions.
• Time management skills are crucial, especially when handling multiple claims simultaneously or dealing with catastrophe claims, where timely handling is expected.
• Determination and a strong will to succeed are important, especially when facing challenging situations like language barriers, unresponsive claimants, or software issues.
• Ethical behaviour is a must, as adjusters have significant power and need to guard against any appearance of ethical infractions.

Land your first job

Land your first insurance adjusting job

Now that you've got your license and have completed the necessary training, it's time to start applying for jobs. Here are some tips to help you land your first insurance adjusting role:

• Reach out to IA firms: Contact the HR departments of major insurance adjusting firms to inquire about openings and their hiring process.
• Get your resume ready: Ensure your resume is tailored to the claims industry and showcases your understanding of what employers want.
• Expand your knowledge: Consider purchasing a bundle that includes your licensing course, Xactimate training, and other courses to help you succeed in the claims business.
• Get on rosters: Get on the rosters of the employers you want with a strategic and intentional campaign. Don't limit yourself to the largest firms—carriers are increasingly spreading their contracts to medium and small firms too.
• Follow up: Be diligent in following up on your resumes, job applications, and personal contacts.
• Network: Join local and national industry associations and insurance job boards to meet like-minded people in the industry. Networking can help you learn from established professionals and connect with others looking to enter the field.
• Stay compliant: Keep your licenses current and in good standing. Be prepared to deploy quickly, especially during catastrophe season. When firms call to fill a position, they usually have a deadline to be on location, so stay ready.

Frequently asked questions