Insurance Adjuster FAQ
What are the requirements for working as an insurance claims adjuster?
How much does an insurance adjuster get paid?
How often does an insurance adjuster get paid?
Which state should I get my insurance adjuster license in?
Aside from obtaining a license, should I consider additional adjuster training?
As an insurance adjuster, who would I go to work for?
Where do I find adjuster firms that will hire me?
What is the difference between an independent and staff adjuster?
How often and for how long would I be working as an independent claims adjuster?
If I get an adjuster license and find the right claims training, am I guaranteed a job?
What are the requirements for working as an insurance claims adjuster?
There are no educational pre-requisites for becoming an insurance claims adjuster. A college degree is not necessary. However, to work as a claims professional you will probably need to obtain a claims adjuster license. Even if your home state does not require a license, AdjusterPro recommends you consider obtaining a Texas Property and Casualty insurance adjuster license. This license is relatively easy to obtain, has excellent nationwide reciprocity, and will increase your chances of obtaining work. Find out how to obtain your Texas Adjuster License in a classroom or take a look at our approved online adjuster licensing course. Although not required, formal training in Xactimate 25, the most widely used loss estimating program, is an excellent credential for your claims resume.
How much do insurance adjusters get paid?
If you work as an independent claims adjuster, how much you get paid depends largely upon how much and how hard you are willing to work. An independent 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 (view sample and how an independent adjuster gets paid - coming soon!). An independent adjuster can expect, if working hurricane claims, 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 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 claims adjuster is a salaried employee. Average starting salary ranges from $28,000 to $34,000. Experienced staff adjusters can see their salary raised to the mid $70,000 range.
How often do insurance adjusters get paid?
Independent insurance adjusters must often deal with an erratic pay schedule. An adjuster may work a month or two, supporting his or herself on the road, without receiving a paycheck. Once the first check is received, typically payment will be issued every two weeks. Thus, AdjusterPro recommends that an independent adjuster should have at least $5,000 reserved for initial expenses incurred while working. The goal of working as an insurance adjuster is to help people and make good money - don't sink your ship with unexpected debt at the outset.
Just as a salaried employee in any other line of work, staff adjusters should receive paychecks in a consistent and timely manner.
Which state should I get my insurance adjuster license in?
If your state has an insurance adjuster license requirement, AdjusterPro urges you to strongly consider obtaining your home state's license first. This will ultimately ensure the highest level of reciprocity across the country. If your state's claims license is reciprocal with Texas and Florida, we recommend obtaining those licenses as the next step. For more information, please check out your state's adjuster license requirements, or feel free to send us a licensing email inquiry.
Aside from obtaining a license, should I consider additional insurance adjuster training?
Yes. Almost all newly licensed adjusters can benefit from additional claims training. You may have 40 years experience in residential construction, but how are your computer skills? Unfortunately, knowing how to send the occasional email, look up the weather, or type a term paper in Word isn't quite enough. Insurance adjusters make use of sophisticated estimating software, and your time and money will be very well spent in improving upon basic computer proficiency. Take advantage Xactimate training given routinely from Texas to Florida. These courses often pay for themselves within your first couple of days in the field. Further, insurance claims training and damage assessment courses from companies such as Vale National and Haag Engineering provide excellent introductions to practical claims training and damage assessment respectively.
Who do insurance adjusters work for?
If you intend to work as an independent insurance adjuster you will be working as independent contractor generally with an independent adjusting firm. Independent adjusting firms in turn contract with insurance companies that have more claims than their own staff adjusters can handle. There are hundreds of claims adjusting firms ranging from large firms who may contract with several thousand adjusters to smaller firms that may only deploy ten or twenty adjusters. Staff insurance adjusters works directly for the insurance carrier itself. This is a salaried position with consistent work throughout the year. See below for income potential for both independent and staff insurance adjusters.
Where do I find independent claims firms that will hire me?
There are two major directories of independent adjusting firms. The first is the National Association of Independent Insurance Adjusters (NAIIA). The second is at www.catadjuster.org. If you are looking for a claims job, consider what employers look for and how to overcome the adjuster experience requirement barrier.
What is the difference between independent and staff adjusters?
Staff 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 ranges from $26,000 to about $34,000. 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 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 adjusters making $500 to $1,500 a day. Annual income can easily rise to six figures.
How often and for how long would I be working as an independent claims adjuster?
This depends on the frequency and severity of catastrophic weather events. A large event such as a major hurricane in Florida or an earthquake in California can generate a year's worth of work for a insurance adjuster. A hail storm in Kansas City may equate to only 2 months worth of claims for most adjusters. If no severe weather or seismic activity occurs for an extended period of time, an independent adjuster may look to work daily claims or fall back on a secondary source of income. As the old farming adage goes - "make hay while the sun shines". It is especially important for an independent insurance adjuster to be frugal when income is steady and lucrative.
If I get an adjuster license and find the right claims training, am I guaranteed a job?
There is always a demand for good staff adjusters with insurance companies hiring on a fairly regular and predictable basis. The demand for independent insurance adjusters is less predictable and depends largely upon the frequency, severity, and location of catastrophic events. Beware of adjusting firms or adjuster schools that promise a job if you take their training - such promises are difficult to keep and paint a misleading picture of the adjuster employment landscape. Understanding what employers are looking for and how to break the "experience required" barrier will serve you well in landing the first job in your claims career.
