Becoming An Insurance Adjuster: Training And Education Requirements

Becoming an insurance adjuster typically requires a high school diploma or equivalent, and in some cases, a college degree. While requirements vary by state, most states require insurance adjusters to obtain a license, which involves passing an exam. Aspiring adjusters should also develop key skills such as communication, computer proficiency, and time management. The entire process can take a few weeks to several years, depending on one's educational background and work experience.

Decide if insurance adjusting is right for you

Insurance adjusting is a stable career with excellent earning potential, but it is not for everyone. It requires a unique blend of hard and soft skills, and a willingness to work in challenging environments.

Hard Skills

• Education: While a high school diploma or GED is the minimum educational requirement, some employers may prefer a degree in business, insurance, or a related field.
• Driver's License: A valid driver's license and reliable transportation are essential, especially for independent adjusters, as the job involves a lot of driving.
• Math Skills: You need solid math skills for analyzing damage and calculating damage costs.
• Computer Skills: Proficiency in using computers and software programs is crucial, as most insurance companies use electronic means to deliver claims and updates.

Soft Skills

• Self-Discipline and Work Ethic: Insurance adjusting requires strong self-discipline and an excellent work ethic, especially for independent adjusters.
• Communication: Effective communication skills are vital, as adjusters interact with multiple stakeholders, including policyholders, insurance companies, and witnesses.
• Time Management: Juggling multiple claims simultaneously demands excellent time management skills.
• Attention to Detail: Paying close attention to detail is critical in identifying fraudulent claims and ensuring accurate claim settlements.
• Interpersonal Skills: Handling upset or stressed claimants with empathy and understanding is an important aspect of the job.

Career Considerations

Before deciding if insurance adjusting is right for you, consider the following career aspects:

• Challenging and Rewarding Work: Insurance adjusting can be challenging, especially in catastrophe situations, but it is also rewarding. Helping people get back on their feet after a loss can be deeply satisfying.
• Always in Demand: Insurance adjusters are in demand across different economic climates, and the industry is evolving with a growing need for adjusters due to an increasing number of damaging weather events.
• Flexible Work Options: You can choose between working as a staff adjuster for an insurance company or an independent adjuster handling claims for multiple firms, each offering its own pros and cons in terms of pay, benefits, schedule flexibility, and workload.
• Income Potential: Independent adjusters can earn annual salaries in excess of $100,000, while staff adjusters typically earn between $45,000 and $80,000 or more.
• Career Growth: Becoming a claims adjuster can lead to advancement into management or analyst positions within the insurance industry or related fields.

Choose the type of insurance adjuster you want to be

There are several types of insurance adjuster positions available. The most common types are staff adjusters, independent adjusters, and public adjusters.

Staff adjusters

Staff adjusters work for insurance carriers like Allstate or Progressive. They work for a single insurance carrier, handling claims only for that insurer. Staff adjusters are usually hired as full-time employees that get standard employee benefits such as health insurance, paid holiday and vacation time, and sick leave. Staff adjusters make less money overall but tend to get a more steady schedule and pay.

Independent adjusters

Independent adjusters work for independent adjusting firms and are hired by insurance companies on a contract basis. They handle claims on behalf of many different insurers, often at the same time. They are only allowed to work for insurance companies. Independent adjusters have more flexibility but may work long hours during busy seasons and very few hours during slower times.

Public adjusters

Public adjusters are self-employed and work directly for policyholders or customers. They are hired by the policyholder when they believe they have received an unfair or incorrect settlement offer from the insurance company. Public adjusters typically work on a contingency basis, collecting a percentage of the final settlement amount as payment. Most states require public adjusters to be licensed.

Meet the basic requirements

To become an insurance adjuster, you must meet certain basic requirements. These prerequisites will vary depending on the state in which you reside and the type of adjuster role you are pursuing. However, there are some common requirements across the board.

Firstly, you must be at least 18 years old and possess a valid driver's license. A personal vehicle is also necessary, as you will spend a lot of time driving between locations to assess damage and perform tasks. Proficiency in reading and writing English is essential, and you should be capable of navigating and performing tasks in diverse settings. Strong communication skills are also vital, as you will regularly interact with multiple stakeholders, including policyholders, insurance companies, and witnesses.

In terms of education, a high school diploma or GED is the minimum requirement. However, some employers may prefer candidates with an associate's or bachelor's degree, especially in a related field such as insurance or business. Prior work experience in a similar capacity or a role that has equipped you with transferable skills can also be advantageous when pursuing a career as an insurance adjuster.

Get your license

The requirements for becoming a licensed insurance adjuster vary from state to state. While most states (34 out of 50) issue their own licenses for claims adjusters, some states do not license adjusters at all. These include Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts.

If you live in a state that does not require a license, it is still beneficial to obtain one as it will give you an advantage when applying for jobs. Most independent adjusting firms require their adjusters to be licensed, and you will need a license to work in states other than your own. If you live in a non-licensing state, you can obtain a Designated Home State (DHS) license from Florida, which will allow you to work claims in Florida and other states that have reciprocity with Florida.

If your home state does issue adjuster licenses, you must obtain this license first. To qualify to take the licensing exam, you may need to complete a pre-licensing course. These courses are available both in-person and online and will prepare you to ace your state's licensing exam. Once you have passed the exam, you will need to apply for your license through your state's Department of Insurance. This typically involves submitting your exam score, fingerprints, and an application fee.

After obtaining your home state license, you can apply for reciprocal licenses in the states you are most likely to work in. This will allow you to work claims in those states without taking additional exams. To obtain a reciprocal license, you usually just need to complete an application and pay the required fees.

It's important to note that some states, such as New York, California, and New Mexico, require adjusters to get bonded. This means that you will need to complete all the requirements for licensing in these states, even if you already have a license from another state.

Learn additional skills

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

Hard Skills

Hard skills are specific, teachable abilities that can be defined and measured. For insurance adjusters, these include:

• Proficiency in industry-standard software such as Xactimate, which is used to estimate property damage.
• Computer proficiency, including typing, using a mouse, and navigating Windows-based programs.
• Knowledge of insurance policies, including the ability to interpret policy language and determine coverage.
• Knowledge of medical terminology.
• Construction and engineering knowledge to understand the makeup of properties being investigated.

Soft Skills

Soft skills are less tangible and often relate to emotional intelligence and interpersonal skills. For insurance adjusters, soft skills include:

• Excellent communication skills, both oral and written. Adjusters must be able to interact effectively with a range of people, including policyholders, claimants, witnesses, and attorneys.
• Time management skills to handle multiple claims and tasks efficiently, especially in challenging and unpredictable circumstances.
• Multitasking abilities to manage various tasks simultaneously, such as providing customer service while working on time-sensitive matters.
• Strong customer service skills, with an emphasis on cordiality, patience, and professionalism.
• Negotiation skills to settle claims and reach fair decisions.
• Analytical skills to evaluate information and make informed decisions.

Frequently asked questions