Becoming A Property Insurance Adjuster: Steps To Success

If you're interested in becoming a property insurance adjuster, you'll need to meet certain requirements and follow specific steps. Here's an introduction to guide you through the process:

To become a property insurance adjuster, individuals typically need to complete certain education requirements, such as obtaining a high school diploma or equivalent, and may benefit from a degree in a relevant field. It is also essential to decide on the type of adjuster role, such as staff, independent, or public adjuster, as this guides the specific path to licensure and employment. Obtaining an insurance adjusting license is a crucial step, and most states require adjusters to pass a licensing exam, which may involve completing pre-licensing courses. Maintaining licensure through continuing education and regular renewals is also important. Proficiency in industry-standard software, strong communication skills, and time management abilities are all part of the role.

Determine if insurance adjusting is a good fit for you

Insurance adjusting is a stable career with excellent earning potential, but it is not for everyone. While the hard skills and qualifications needed to become an adjuster are simple, the soft skills that set great adjusters apart include self-discipline, an excellent work ethic, and great communication skills.

Insurance adjusting is a challenging but rewarding career. The pay is good, and helping people get back on their feet after a loss is deeply satisfying. Insurance adjusters are always in demand, as claims remain steady regardless of economic factors. Independent claims adjusters can realistically earn annual salaries in excess of $100,000, while staff adjusters who work directly for insurance carriers earn salaries ranging from $45,000 to $80,000 or more.

In catastrophe situations, such as after a hurricane, the huge volume of claims causes a massive increase in the demand for adjusters. During these spikes, a good adjuster can earn more in a few months than they would normally earn in a year. However, you must be ready to work in extremely challenging environments at the drop of a hat.

The insurance industry is rapidly evolving, and employers are struggling to fill the vacuum left by a generation of adjusters who are retiring. Additionally, the country is facing an increasing number of damaging weather events, many of which are more potent than in the past.

If you are considering becoming an insurance adjuster, you should also be aware that it is a mobile job. Adjusters work on everything from estimating hurricane damage to doing paperwork, consulting, and inspection. If you are an independent adjuster, you can choose how you charge for the job and how you are paid.

However, the process of negotiating and communicating with often distressed parties can add stress to the job.

Choose the type of adjuster you want to be

There are four main types of insurance adjusters: staff adjusters, independent adjusters, catastrophe adjusters, and public adjusters.

Staff Adjuster

Staff adjusters work directly for a single insurance company and handle all aspects of the claims process, from investigating and evaluating claims to settling them. They are the insurance company's employees, so their goal is to save as much money for the company as possible.

Independent Adjuster

Independent adjusters, also known as freelance adjusters, are usually employed by independent adjusting firms that insurance carriers contract to help settle their claims. They have more freedom in their work and can choose how they charge for their services.

Catastrophe (CAT) Adjuster

Catastrophe adjusters can be either staff or independent adjusters who travel to areas affected by severe weather events or other catastrophes and handle claims en masse. They often work outside the office, inspecting damaged properties and vehicles. This type of adjuster must be careful around potential hazards, such as collapsed roofs and floors, and weakened structures.

Public Adjuster

Public adjusters are independent, licensed adjusters hired directly by claimants (not the insurance company) to represent their interests in the claims process. Their goal is to get the highest possible payout for the claimant and are paid a percentage of the settled claim.

Get your adjuster license

The requirements for an adjuster license vary by state. Some states do not require a license to practice as an adjuster, but it is recommended that you obtain one to increase your employability.

If you live in a state that does not license adjusters, you can obtain what is known as a Designated Home State (DHS) license. This allows you to declare a licensing state as your home state and go through their licensing process. The most popular states to obtain a DHS license are Florida, Texas, and Indiana.

Step 1: Complete an Adjuster Training Course

Many states require insurance adjusters to show that they have received an education in the field as a prerequisite for applying for a license. These education requirements can often be met by completing a state-approved pre-licensing education course. Some states may also accept certain certifications or previous college-level coursework in insurance-related subjects.

Step 2: Pass the Adjuster License Exam

If you do not have a background in insurance, you can still obtain your license by passing a state licensing exam. A pre-license education course is the best way to prepare for this exam. Each state that offers an insurance adjuster license includes an exam content outline to help applicants prepare.

Step 3: Complete Your Adjuster License Application

You will need to submit your personal and background information to your state's Department of Division of Insurance to apply for your license. Most states use an online secure portal for this process. Application fees can range from $20 to over $200, and you can expect to pay multiple fees to become fully licensed.

Step 4: Apply for State Reciprocity

While not a requirement, having state reciprocity can increase your ability to process claims in other states, especially during a disaster. If you plan to work as a catastrophe insurance claims adjuster, you will likely need a license in multiple states. Many states offer reciprocity agreements, allowing adjusters licensed in one state to pursue licensure in another without completing new requirements.

Step 5: Maintain Your Adjuster License

Once you have obtained your license, you will need to complete additional steps periodically to keep it active. This typically involves continuing education requirements, such as a certain number of hours of approved courses every two years.

Learn additional skills

To become a property insurance adjuster, you'll need to learn a variety of skills that will help you effectively assess and negotiate insurance claims related to property damage or loss. Here are some key additional skills to focus on:

Customer Service and Communication Skills

Property insurance adjusters need strong customer service and communication skills. They often interact with multiple stakeholders, including policyholders, insurance companies, attorneys, and witnesses. Effective communication ensures that all parties are well-informed about the claim's progress and helps in negotiating settlements. Adjusters should be able to communicate clearly and professionally, both orally and in writing.

Computer and Software Proficiency

Insurance adjusters rely on computers and software programs to perform their jobs efficiently. Proficiency in industry-specific software, such as Xactimate, is highly valued by employers. This software is used to create computerized estimates, compile damage assessments, and communicate with insurance agents and clients. Additionally, adjusters should be comfortable using email, creating documents, and navigating claims adjustment software.

Time Management

Time management is crucial for insurance adjusters, especially independent claims adjusters who handle catastrophe claims. Adjusters often juggle multiple claims simultaneously, and many policyholders' claims are time-sensitive. Therefore, learning effective time management techniques is essential to succeed in this role.

Negotiation and Conflict Resolution

Property insurance adjusters are often responsible for negotiating with policyholders, contractors, and other parties to settle claims and ensure proper compensation. Developing strong negotiation skills and conflict resolution techniques will help you navigate these discussions effectively and reach fair agreements.

Investigative and Analytical Skills

Adjusters must be adept at investigating claims, interviewing involved parties, reviewing documentation, and evaluating evidence to determine the validity of a claim. They need to assess the extent of damage, determine the cause, and estimate repair or replacement costs. Strong analytical skills enable adjusters to make informed decisions and calculations when assessing claims.

Industry Knowledge

A solid understanding of insurance policies, procedures, and regulations is essential for property insurance adjusters. They should be familiar with different types of insurance, including property, automobile, health, and life insurance, to effectively evaluate and process claims. Additionally, knowledge of construction and legal principles related to insurance claims can be beneficial.

Land your first insurance adjusting job

Now that you've got your license, 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 adjusting firms to ask about openings and their hiring process.
• Get your resume ready: Tailor your resume to the claims industry, highlighting the skills and experience that employers in this field are looking for.
• Expand your knowledge: Consider purchasing the Total Adjuster Package, which includes your licensing course, Xactimate training, and the Adjuster Success Method. This will give you a comprehensive understanding of the claims business and improve your chances of success.
• Get on rosters: Sign up for rosters with a range of employers, including medium and small firms, not just the largest ones. Carriers are increasingly spreading their contracts to smaller firms to meet demand.
• 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 expand your network and make valuable connections.
• 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 tight deadline, so be ready to move fast.

Frequently asked questions