STEP 1 – Look at the different types of adjusters and the specific functions they perform to make sure you are a good fit to become a claims adjuster. Then, take an honest assessment of your lifestyle. You’ll need to take a candid look at the number of hours per day you can work, whether or not you can travel, and if you enjoy working with insureds, agents, and attorneys.
You’ll also need to objectively determine your own strengths and weaknesses to ascertain if becoming an insurance claims adjuster is the best fit for you. If you become an independent adjuster working on behalf of the insurance company, it does not always mean you have to travel to natural disaster areas, but you can if that’s your goal! It also does not mean you have to crawl under houses or up on roofs. If you prefer working at a desk on a computer, there are in-house company adjuster jobs available!
If you don’t like the idea of working on behalf of an insurance company you may prefer to become a public adjuster and work on behalf of the insured policyholder. Public adjusters perform their own inspections, file claim form, and assist with mediations and arbitrations.
STEP 2 -- The next step is to determine which type of adjuster you would like to become. Technically, there are two types of adjuster licenses granted by the state insurance departments. The first is an “independent adjuster” and the second is a “public adjuster”.
INDEPENDENT OR COMPANY ADJUSTERS
These are adjusters that hold a license and can work on behalf of insurance companies as an “employee” or an “independent contractor”. Most state statutes refer to this type of license as an “adjuster license”. However, other states may title this license as “general adjuster license”; “all lines adjuster license”; or “property & casualty adjuster license”. Therefore, when looking at state reciprocity for adjuster licenses and you see the statement that “this state does not license adjusters” this means they do not license INDEPENDENT adjusters.
The independent adjuster license type also encompasses the specialty adjuster license types like “workers compensation adjusters”, “accident & health adjusters”, or “inland marine adjusters”. Additionally, this is the type of license you would seek to become a “catastrophe” adjuster who places their name on rosters to be deployed to disaster areas to adjust claims on behalf of insurance companies.
Company or Staff Adjuster – These adjusters work year-round and usually full-time as an employee for an insurance company or a third-party administrator. These adjusters may also be referred to as “inside” or “desk” adjusters and handle claims from their home office or company office or a call center set up to receive claims.
Company or Staff adjusters may also be utilized as “field adjusters” for the company. Field adjusters are sent to meet with the company’s insured who has filed a claim and to make an inspection of the loss. The company will also use these field adjusters to help complete their rosters during a major loss event such as a hurricane, flood, or tornado.
Catastrophe Adjuster – Many independent adjusters work as “independent contractors” as opposed to employees of insurance companies. These contractors add their name to adjuster firm rosters to be deployed during natural disasters to work on claims for various insurance companies.
PUBLIC ADJUSTERS
This type of adjuster license is offered in most of the 50 states and allows those holding it to assist the POLICYHOLDER in processing their claims. Typically, state insurance statutes allow public adjusters to process only property loss claims. For example, a public adjuster may be hired by an insured person who has experienced a roof loss during a storm.
With automobile claims, public adjusters may assist the insured on the physical damage to their vehicle that is the result of an accident. Public adjusters do not assist with liability (casualty) type claims. For example, a public adjuster would not be hired to assist an insured after a car accident when the insured was negligent in causing the accident and the claim will be paid to the third-party that the insured injured in the accident.
Public adjusters also make inspections of the loss and can many times find additional damage that was missed in the inspection completed by the company adjuster. Public adjusters also assist the policyholder complete the required claim forms and make sure the policyholder complies with all “duties of the insured” required by the policy. When an insured does not comply with their duties following a loss as required by the policy provisions, it can invalidate their claim and the insurance company will not pay.
Public adjusters work in both small and large firms. Noble Adjusters is one of the largest PA firms in the United States and their website explains many of the functions they perform. You can visit their website at noblepagroup.com
The licensing and ethical requirements of public adjusters can vary greatly in the same state. Most states will allow an individual to hold both an independent adjuster and a public adjuster license at the same time, but they are prohibited from working as both types of adjusters on the same claim. Obviously, it would be a conflict of interest for an adjuster to work on behalf of the insurance company and the insured policyholder at the same time.
Due to the conflict of interest created by holding both adjuster license types, more and more states are passing laws prohibiting any individual from holding both licenses at the same time.
STEP 3 – Get an adjuster license by taking a course and passing the state licensing exam for independent adjusters. Preparing you to take the state licensing exam and passing it the first time is the role of Insurance Schools, Inc. The following states offer licenses for independent or company adjusters. If you live in one of these states, you must hold a license there FIRST before you can become a licensed adjuster in any of the other states:
Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Mexico, New York, North Carolina, Oklahoma, Oregon, Rhode Island, South Carolina, Texas, Utah, Vermont, Washington, West Virginia, and Wyoming.
For example, it makes no difference if you want to adjust claims after a hurricane in Florida, if you live in one of the above states other than Florida, you must determine obtain the license in that state FIRST, before you look into obtaining a Florida license.
Most adjusters working catastrophes hold licenses in multiple states. After obtaining a license in their home state by passing the state licensing exam, these adjusters can apply to many other states for a “nonresident adjuster license” that does not require them to take the state licensing exam for these other states. The continuing education (CE) requirements for the home state license will usually apply to allow for renewal of all of the nonresident licenses held by that adjuster. However, the states of California, Hawaii, and New York require all nonresident adjuster license candidates to take their state licensing exam. In other words, they do not grant reciprocity for any other states’ adjuster licenses.
Things can become a bit tricky if you live in one of the following states that does not offer an independent or company adjuster license and that is the license you want to obtain: 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 license independent or company adjusters but you want to become an independent adjuster so that you can be deployed all over the country where natural disasters occur, you’ll need to find a state to designate as your home state for licensing purposes. This is known as your DHS and you’ll need to follow that state’s licensing rules as if you lived there. The license obtained will be issued as a DHS license. And to complicate things further, there are a few states that will not accept DHS licenses.
Due to all of the complications with adjuster license reciprocity and designated home state (DHS) licensing, we have created a separate page to explain these rules webpages to specifically help you sort through all of the adjuster license reciprocity rules for Independent or Company Adjusters: For more information on adjuster license reciprocity and designated home state (DHS) licensing CLICK HERE!
STEP 4 -- Gain as much knowledge as you can about building and construction as well as Xactimate claims estimating software. Some companies offer a prelicensing or exam prep course adjuster license course as a "loss leader" to draw you in so they can upsell you for between $400 to $500 to obtain information on "how to make money as an adjuster" or "how to use Xactimate" the software that all adjusters need to master.
Proficiency with Xactimate is definitely a skill that all property adjusters need. However, that training can be accessed for free on YouTube. The other skills such as beginning construction courses, how to successfully find adjuster jobs, tools needed for adjuster jobs, etc. are also covered on YouTube at no cost to you. Below are some links to get your started.
YouTube Channels we love:
Xactimate Training by Adjuster University
Construction Knowledge for Adjusters by Adjuster University
STEP 5 -- Find a job as an Adjuster! For Independent Adjusters, you can go to a site such as CATAdjuster.org to find jobs and get on rosters for deployment.
For those preferring to be a desk adjuster, look into TPAs such as Sedgwick and Gallagher-Basset who are constantly hiring. This is a great way to learn the ropes and get experience. There is also room for growth if you want to make a TPA your forever home!
For Public Adjusters, you will usually already be working as an apprentice before you receive your license and the supervising adjuster may offer you a job. There are many large public adjusting firms such as Noble where you can also apply. But for those just starting out, we recommend The Commercial Claims Show: CLICK HERE!
To find all adjuster courses offered by Insurance Schools CLICK HERE! If you have any questions, please let us know by CLICKING HERE to CONTACT US