Insurance Claims Adjuster FAQ

How do I become an insurance claims adjuster?

Insurance companies and adjusting firms across the country are looking for qualified candidates to hire as insurance adjusters. If you are seeking work as an independent insurance adjuster, the first step is to become licensed as a claims adjuster in your home state. If you are unable to or if your state does not require an adjuster license, you should strongly consider obtaining the highly reciprocal and versatile Texas adjuster license. Once licensed, you will be eligible for employment; however, additional training is frequently required and is certainly recommended. Xactimate training, for example, is a crucial step in most aspiring insurance adjuster's career path. If you are seeking work as a staff adjuster (an employee of an insurance company) then very often your licensing and training will be taken care of in-house.

How much money does an insurance adjuster make?

If you work as an independent insurance claims adjuster, how much you get paid depends largely upon how much and how hard you are willing to work. An independent insurance adjuster will typically be paid on a per claim basis with the amount paid being a relative percentage of the settlement amount. This is known as a fee schedule. An independent insurance adjuster can expect, if working hurricane claims for example, to make an average of $400 per claim he or she settles. As an independent contractor, an independent adjuster determines their own schedule, but an industrious and effective insurance adjuster should be able to "close" between 3 and 5 claims per day. Thus, a good insurance claims adjuster can easily make over $1,000 a day while working catastrophe claims. Several months of hard work can quickly generate a six-figure income.

A staff insurance adjuster is a salaried employee. Average starting salary ranges for career adjusters is $28,000 to $34,000. Experienced staff adjusters can see their salary raised to the mid $70,000 range. According to the Department of Labor, the average salary of an insurance adjuster was $44,220 in 2004. The great majority of adjusters are staff adjusters.

For an even more detailed treatment of adjuster compensation, check out an article on How Much Money Does an Insurance Adjuster Make?

How difficult is it to find a job as a claims adjuster?

The demand for independent insurance adjusters or cat adjusters is largely dependent upon the frequency and severity of catastrophic events. Hurricanes, earthquakes, fire, flooding, tornadoes, and hail-storms provide thousands to millions of claims per year depending on the scale and intensity of the events. In a year like 2005 (Hurricanes Katrina, Rita, and Wilma), finding a job as an adjuster was a matter of simply asking for one. In 2006, however, it was necessary for adjusters to be a little more proactive and creative in their job search.

Staff adjusters are a different case. There seems to be a far more stable and constant demand for staff adjusters on a year round basis. Whether you are interested in auto adjusting, liability adjusting, or residential adjusting, a position on staff as an employee of a large insurance company is often a good way to get your foot into the claims adjusting door.

In general and on average, finding a job as an adjuster is much like finding a job in any other profession – there are jobs available and finding one is simply a matter of being proactive and persistent.

What is the difference between an independent and staff adjuster?

Staff insurance adjusters work directly for insurance companies as year-round salaried employees and put in 35 to 50 hours per week. An average entry level salary for a staff adjuster is in the $32,000 range. Staff adjusters typically specialize in one or more of the following claims types: automobile, homeowners, commercial, ocean and inland marine, farm and ranch, and workman's compensation.

Independent insurance adjusters operate as independent contractors, typically contracting with independent adjusting firms. Adjusting firms in turn contract with insurance companies who require claims support beyond the capabilities of their staff adjusters. As independent contractors, IAs work for periods sufficient to complete the job and are not salaried. Instead, IAs are paid on a per claim basis or occasionally on a per diem (day) basis. After a major catastrophic event such as an earthquake or hurricane, independent adjusters may be putting in 70 to 90 hour work weeks. This work is highly lucrative, with many independent adjusters making $500 to $1,500 a day. Annual income can easily rise to six figures.

What is a cat adjuster?

A catastrophic claims or cat adjuster is an insurance adjuster specially assigned to work claims in the aftermath of a catastrophic event. Cat adjusters commonly work hurricane, flooding, and hail claims as well as fire, tornado, and earthquake. Hail storms provide the most consistent and regular source of cat claims in the U.S.. Hurricane and earthquake, due to their potential to occur on an immense scale, are capable of causing hundreds of thousands to even millions of claims in a single event and will the employ the most cat adjusters at any one time. Cat adjusters or "storm troopers" help communities pick up the pieces by assisting insurance companies in settling claims as quickly and efficiently as possible. Frequently independent adjusters, catastrophic claims adjusters are compensated very handsomely for their work with capable adjusters making well over $1,000 daily.

What is Xactimate?

Xactimate is computer software designed to help property claims adjuster prepare an estimate. Hand-written estimates have largely been phased out, and most claims adjusters are expected to submit their claims' reports electronically. Xactimate 25, the most current version in the Xactimate line, is an exceedingly useful and powerful tool in property claims. It utilizes a bi-weekly updated price list of materials and labor for every county in the U.S. and allows users to sketch rooms and roofs and even re-create entire floors in virtual space. An adjuster who can master this program quickly will have a significant career edge over the competition and will readily gain and maintain employment. AdjusterPro's Xactimate training will assist you in doing just that.

How does AdjusterPro help me with my insurance adjuster career?

To succeed in a career like claims adjusting, you need accurate information and powerful resources. AdjusterPro was created as a one-stop career resource for claims adjusters at all levels. Stay informed with our insurance adjuster blog and stay connected with the Well-adjusted social network. The finest adjuster training and licensing, online or in the classroom, is always open for registration. And career consultation with a friendly and knowledgeable AdjusterPro professional is but a phone call away. Advance your insurance adjuster career with AdjusterPro!

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