The Role Of Insurance Adjusters: Unraveling The Claims Process

An insurance adjuster, also known as a claims adjuster, is a person who investigates an insurance claim to determine if the insurer should pay for damage or injuries, and if so, how much they should pay. They work for the insurance company that is paying the claim and are the person that the claimant will deal with most often. Adjusters review the claim by speaking with the claimant, interviewing witnesses, researching records (such as police or medical records), and inspecting any involved property. They then submit documentation to the insurance company describing the incident and recommending a claim amount.

Who do insurance adjusters work for?

An insurance adjuster, also known as a claims adjuster, investigates insurance claims to determine whether the insurance company should pay for damage or injuries, and if so, how much they should pay. They work for insurance companies, either directly or as freelance adjusters hired to handle specific claims. They can also be independent contractors who represent claimants.

There are three main types of claims adjusters: company or staff adjusters, independent adjusters, and public adjusters. Company or staff adjusters work full-time for a single insurance company and are usually salaried employees receiving benefits such as pensions and health insurance. Independent adjusters work as contractors for multiple insurance firms or third-party administrators and are sometimes called "catastrophe claims adjusters" as they often work with catastrophe claims, travelling to impacted areas after major weather events or emergencies. Public adjusters work directly for policyholders, helping them file insurance claims if they believe a proposed settlement is unfair. They are usually contract workers rather than salaried employees.

Claims adjusters have three main priorities: preventing insurance fraud, settling claims quickly, and settling claims for a low amount. They review claim details and policies, interview those involved, and go over options with the claimant. They may also help coordinate inspections and repairs. Ultimately, their main focus is to protect the interests of the insurance company and prevent overpayment or payment on exaggerated or illegitimate claims.

What do insurance adjusters do?

An insurance adjuster, also known as a claims adjuster, is a person who investigates an insurance claim on behalf of an insurer to determine the extent of the insurer's liability and whether the insurer should pay for damage or injuries. They also determine how much the insurer should pay out if they decide to approve the claim.

Claims adjusters may handle property claims involving damage to structures and/or liability claims involving personal injuries or third-person property damage. They review each case by speaking with the claimant, interviewing witnesses, researching records (e.g., police or medical reports), and inspecting any involved property.

For example, if a homeowner files an insurance claim due to a tree falling on their house, a claims adjuster would interview the claimant (homeowner), along with any witnesses, and inspect the property to determine the extent of the damage and the costs of repairing the property. The claims adjuster then submits documentation to the insurance company, describing the incident and recommending a claim amount.

Claims adjusters can work directly for the insurance company or as freelance adjusters hired by the company to handle specific claims. They are usually the main point of contact for the claimant during the claims process and act as negotiators between the insurer and the insured.

It is important to note that claims adjusters work for the insurance company and not the claimant. Their primary role is to protect the interests of the insurance company and resolve claims in a way that serves the company's bottom line. This may involve denying claims or attempting to convince property owners to accept less money than their claim is worth.

What are the different types of insurance adjusters?

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

Staff Adjusters

Staff adjusters, also known as company adjusters, work directly for insurance companies as full-time employees. They are usually hired as full-time employees and receive standard employee benefits such as health insurance and paid holiday and vacation time. Staff adjusters typically handle claims only for the insurance company they work for, and usually work on car accident cases.

Independent Adjusters

Independent adjusters are self-employed and work as contractors for multiple insurance companies. They are hired on a freelance or contract basis to handle claims from insurers with no nearby office or too many claims to handle, often in the case of a natural disaster. Independent adjusters are only allowed to work for insurance companies and not the claimants.

Public Adjusters

Public adjusters are hired by the claimants or policyholders and work on their behalf. They help people and business owners file an insurance claim if the proposed settlement offered by the insurance company seems unfair. Public adjusters typically work on a contingency basis, collecting a percentage of the final settlement amount as payment.

How to become an insurance adjuster

Becoming an insurance adjuster can be a quick process, but it requires hard work. The role is often referred to as the "hidden gem" of insurance careers. It is a stable job with good earning potential, and adjusters are typically in high demand.

Step 1: Verify that Insurance Claims Adjusting is Right for You

Insurance adjusting requires certain soft skills, such as self-discipline, a strong work ethic, and great communication skills. It is a challenging but rewarding career, and adjusters are always in demand as claims remain steady regardless of economic factors. It is also possible to earn in excess of $100,000 annually as an independent adjuster, while staff adjusters typically earn between $45,000 and $80,000.

Step 2: Choose the Type of Insurance Adjuster You Will Be

You can choose to be either a staff adjuster or an independent insurance adjuster. Staff adjusters work as year-round employees for an insurance company, usually full-time, whereas independent adjusters are contractors who work for insurance adjusting firms that service multiple insurance companies.

Step 3: Get Your Insurance Adjuster License

Most states require insurance adjusters to be licensed. If your home state does not license adjusters, it is still recommended to obtain a Designated Home State (DHS) license from another state, such as Florida, as this will increase your employability.

Step 4: Learn the Most Essential Skills

Beyond the licensing, there are other key skills to learn to be a successful adjuster. Proficiency in industry-standard claims writing software, such as Xactimate, is critical. It is also beneficial to obtain a State Farm Certification as these can be harder to obtain than other carrier certifications.

Step 5: Land Your First Insurance Adjusting Job

Finding a job as an insurance adjuster requires dedication. Reach out to human resources departments at major adjusting firms, create a tailored resume, and expand your knowledge by taking relevant courses. Networking is also key, so join industry associations and insurance job boards.

How much do insurance adjusters earn?

An insurance adjuster, also known as a claims adjuster, investigates insurance claims to determine the extent of an insurance company's liability. They may handle property claims, damage to structures, and/or liability claims involving personal injuries or third-party property damage.

Claims adjusters can be divided into two types: staff adjusters and independent adjusters. Staff adjusters are salaried employees of an insurance carrier, while independent adjusters are independent contractors who work for adjusting firms. Staff adjusters typically earn less than independent adjusters, with salaries ranging from $40,000 to $70,000 per year. Entry-level salaries for staff adjusters average about $40,000. On the other hand, independent adjusters can earn over $100,000 in a good year, especially when handling catastrophe claims.

The average salary for claims adjusters varies depending on the state and city in the United States. For example, the average salary for a claims adjuster in Georgia is $59,377 per year, while in Texas, it is $60,484 per year. In Dallas, Texas, the average salary is slightly lower at $54,468 per year. The median base salary for claims adjusters in the US is around $65,000 annually.

According to Indeed.com, the average salary for a claims adjuster in the US is $61,465 per year. However, a claims adjuster's salary can vary depending on the number of claims they are working on simultaneously. Some adjusters can earn thousands of dollars per week. The U.S. Department of Labor reported similar figures, with an average annual salary of $73,380 and an average hourly wage of $35.28 as of May 2022.

In summary, the salary of insurance adjusters can vary significantly depending on their type, location, and experience level. While staff adjusters tend to earn less, independent adjusters have the potential to earn six-figure incomes, especially during catastrophe claims.

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