Most states require that you obtain a license to adjust claims, and the process may vary depending on which state you live in. This is typically done by fulfilling pre-licensing requirements (if necessary), taking and passing your state adjuster exam, then submitting your license application for your home state (or designated home state) license.

IAs can be compensated by three types of methods: day rate, hourly, and fee schedule. Day rate and hourly are pretty self-explanatory, you are compensated either per workday or per hour. Rates can vary depending on the season (catastrophe season may result in higher rates as it is a busier time of the year). The fee schedule compensation method is more based on the principle of ‘you bring in what you put out’. Independent adjusters are paid a percentage of a fee schedule, see below for an example. An adjuster’s salary is greatly dependent on the amount of effort and work the adjuster puts in; the more efficient you are, the more claims you can close. In addition to efficiency, the percentage of the fee schedule offered to the adjuster can fluctuate based on differing factors (ex. experience, availability, willingness to travel, the IA Firm, etc). In general, we have found that the average independent adjuster salary in the United States for 2021 was around $71,000.

Competition of these fee schedules is created when there are major disasters such as hurricanes or large fires. When disasters like this strike, IA firms need quality, competent adjusters, and so they are more willing to alter their percentages and offer a major disaster fee schedule. For example, during hurricane season, adjusters can make into the $100,000s in a few short months if they are willing to travel to the affected area. It should be noted that busy times also come with slow times, and as an independent contractor, the busy times are not promised, predictable, or reliable. With this being the case, it is extremely important that independent adjusters manage accordingly to accommodate periods where work availability may dwindle.

Fee Schedule Example

If an adjuster receives 60% and the gross loss of the claim is $1,836.47, the adjuster would receive 60% of $365 which is $219.

Xactimate is an adjusting software produced by Xactware that is designed for those in the construction, restoration, and claims industries. This software compiles a materials list, a calculator, a sketch pad, and a price book all into one program, speeding up the estimating process for the adjuster. A few major key points of using Xactimate (sometimes abbreviated as XM8) are that it allows the adjuster to create detailed, accurate, and consistent estimates, the ability to sketch almost any type of roof and house/building layout, and it provides up-to-date pricing information for most materials needed when dealing with adjusting.

Short answer, no. There is another estimating program called Symbility, which is used by a select group of insurance companies that you could learn. While you don’t HAVE to know your way around Xactimate, it is a plus if you are accustomed to the software and can help you stand out when looking for employment. Since Xactimate is the leading estimating software used by over 80% of insurance carriers, your job opportunities will greatly increase if you are knowledgeable and proficient in XM8. Additionally, the more familiar you are with XM8, the quicker you can close claims, and the bigger the paycheck!

A Designated Home State license, or DHS license, is obtained by adjusters who live in non-licensing states. The DHS license acts as a home state license and is required if you plan on working outside of your home state. For example, if you live in Missouri, you are not required to obtain a license to adjust in Missouri, however, you cannot travel out of state for a storm in Texas and work claims. Once you choose a state as your Designated Home State, complete any pre-licensing requirements, pass the exam, and receive license approval, you will then be licensed in that DHS and are able to obtain non-resident licenses for all reciprocating states. Texas and Florida are both commonly used as Designated Home States as they reciprocate with most states, including the 16 non-licensing states, except for California, Hawaii, and New York (New York does not grant reciprocity for any non-residents).

Current non-licensing states: Colorado, District of Columbia, Illinois, Iowa, Kansas, Maryland, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Virginia, Wisconsin

Once you have become a licensed adjuster through your home state or designated home state, you are able to apply for reciprocal licensing privileges. This is done by completing any necessary paperwork and fulfilling licensing fees, which can range from $55 – $175. Reciprocal licensing privileges DO NOT require that you take and pass additional state exams.

Additionally, not all states reciprocate equally. As mentioned above, for example, New York does not offer reciprocal licenses to any non-resident adjusters. This means that if you are licensed through Kentucky as your home state, you cannot obtain reciprocal licensing privileges to work in New York. Conversely, if you hold a New York license, you can apply for a reciprocal license if you would like to work in Kentucky. AdjusterPro offers an excellent Reciprocity Map here if you need further info on reciprocating state licenses.

By no means do you need to be an expert in construction to be a successful adjuster, but it can be helpful to know the basics of construction and terminology or language. Becoming familiar with the basics will make assessing property damage and properly utilizing estimating software easier and more efficient. As with any new career, some things you won’t fully understand until you are hands on and in the thick of it!

The insurance adjuster market is ever changing. There are hundreds of thousands of licensed adjusters throughout the country, however, their use varies. Some only adjust certain times of the year, certain types of claims, or in certain areas. When this is combined with the huge influx of claims that occurs post-catastrophe, it seems like a mad dash to ensure all areas are covered. Insurers are responsible for handling claims in a timely manner in all scenarios, CAT or daily, but when a catastrophe occurs many adjusters flock to the states with the most damage. This means the IA firms must find adjusters to fill the void left behind.

In addition to working around the relocation of adjusters, many from the baby boomer generation are retiring at an elevated pace. This continues to create more job openings. While there may be a lot of newly licensed adjusters in the industry, not all of them are trained and prepared to perform at a high level.

As with most jobs, companies prefer new hires to have some prior experience within the field they have applied for. However, we are all newbies at one point, and most firms are understanding of this. Once you are approved for your license, if you then take action to learn XM8, apply to rosters, and utilize any training sessions that may be offered to you by IA firms, you will find yourself on a great path to landing a job.

One of the most common chances new adjusters have at landing a job is during CAT season. As mentioned above, during catastrophes, adjusters will deploy in the thousands to the area with the most damages. This is an excellent opportunity for newbies to prove themselves. IA firms will find themselves with the need to expand their roster of deployed adjusters to work the catastrophe and/or fill the gap that remains from pulling adjusters to deploy. It is within this scenario that firms will increase training and start onboarding new adjusters with little to no experience.

CAT season brings in an overwhelming number of claims and work for adjusters. To prepare for CAT claims, for starters, you need your home state or DHS license, and should apply for reciprocating licenses or emergency licenses. You should also get as familiar as possible with XM8. During a CAT deployment there is a lot of pressure to turn a large amount of claims around in a timely manner, and the quicker you are with the estimating software, the better. To increase your chances of deploying, apply to IA firm rosters, LOTS of rosters. Pre-storm preparation also plays a major role in success. For instance, firms were deploying adjusters before Hurricanes Harvey and Irma had even made landfall simply to be prepared for the major influx of claims. If there is a major storm, or multiple events in a short period of time, CAT rosters can be depleted quickly, and IA firms will begin calling upon others to deploy ASAP.

This is not to say that if you are not ready at the drop of hat, you have completely missed your chance. Typically, adjusters are needed for months after the initial storms and sometimes more adjusters are needed to replace those who may become burnt out or leave to work a different storm. “For example, a derecho hit the Midwest early August of 2020, and as of the beginning of November of 2020, around 140,000 claims had been settled of the 200,000+ claims that had been submitted (SITED: ADJUSTERPRO)”

An insurance claims adjuster is considered a representative of the insurance company. It is the adjuster’s responsibility to investigate, document, and relay the necessary information of the claim to the insurance company. After a policyholder submits a claim for a loss, whether it be a storm, a robbery, or car accident, the claims adjuster will then investigate the loss. The investigation can include a range of duties from inspection of the home or vehicle to conducting recorded interviews or verifying records via police reports, etc. The responsibility of determining coverage can vary depending on the insurance carrier. This means that, if requested, the adjuster may have to take the facts of the loss and determine what is covered based on the policyholder’s insurance policy. In many of these scenarios the adjuster is also responsible for negotiating settlement as a representative of the insurance company and can issue payment to the policy holder.

Most states require you to be at least 18 years old and pass a background check when applying for a license. Other than that, just about anyone is eligible to become a licensed adjuster as college degrees are not often required. While some make the transition to adjuster from another position within the insurance industry, there are lots of adjusters in the field who have made the jump from all types of professions to adjusting.

As you embark on your adjusting journey and gather more experience in the field, you will quickly find that the variables in each claim can greatly vary. An in-person adjuster is vital in picking up on and acknowledging the details of each claim. Technology is constantly advancing, and we have seen some major improvements in the technology available for the claims process, but the field adjusters training and experiences are pivotal to reaching fair outcomes for both the policyholder and the insurance carrier.

With stronger and more frequent storms occurring each year, there is relatively high job security in the insurance industry. Firms are constantly on the lookout for confident, competent adjusters to either deploy during a major catastrophe or maintain the daily load work.

Independent adjusters (IAs) are most often contracted as 1099 employees with Independent Adjusting Firms. While IA firms are newer within the insurance industry, they play a key role in ensuring all claims are handled within the timeline set forth by law.

Staff adjusters are most commonly salaried adjusters employed by the insurance carrier directly. Travel may still be required, but it is usually restricted to a specific region and is less frequently required, which can be very beneficial for those who prefer to stay close to home. Staff adjusters also have a more reliable source of income, but it is usually lower than what IAs receive. Some carriers service their claims with staff adjusters during the slower or average parts of the year, and then outsource claims to IA firms when the workload exceeds what can be handled by their main roster.

Working as an IA gives the adjuster some added freedom because, as the name implies, you are independent and work for yourself. IAs are often given the option to accept deployments when and where they want, although it should be noted that generally, the most successful adjusters are willing to go when and where they are requested to by their IA firms.

The property and casualty (P&C) license includes property and casualty for residential, commercial, automobile, farm and ranch, inland marine, and ocean marine. The All-Lines license includes the previously mentioned as well as workers’ compensation.

Here is a quick breakdown of each type of insurance:

Residential: primarily used for dwellings (single family homes, townhouses, condos)

Commercial: primarily used for business (stores, offices, worship, etc)

Auto: cars, motorcycles, and any other non-commercial covered vehicle

Farm & Ranch: dwellings, outbuildings, equipment, animals, & stored crops

Inland Marine: commercial trucks and their cargo, bridges, docks

Ocean Marine: sea vessels and their cargo

Workers’ Compensation: employees injured on the job

Holding as many licenses as possible will make you look more attractive to both carriers and IA firms. As stated previously, there is a large shift of adjusters when a storm hits. If you are licensed and able to work in multiple states, you can either help with the CAT work or pick up the remaining daily claims left by all the adjusters who deployed. Either way, you are given an opportunity to help wherever needed and increase your revenue.

In general, most states require that you pay a license renewal fee and submit renewal documentation every two years (some states require the renewal every three or four years). Additionally, most states also require that adjusters complete continuing education (CE) hours within each renewal period. Each state has their own requirement on how many CE hours are required, depending on the state and renewal period, this averages anywhere from 16-40 hours. The requirements may also specify if hours can be taken online and/or in person, a certain number of hours per subject (such as three hours dedicated to ethics), or if you must complete a specific course (for example, attend a seminar for national flood insurance). You can track your CE credits at Sircon.

It is very important to save any coursework completion certificates for your own record. Most CE providers will submit a report with the CE credits to the state on your behalf, and they will address this in their course description. Saving any certificates will allow you to provide the documentation if there is an error with the CE provider’s submission, or if you must do it yourself.

There are 16 states that do not require adjusters be licensed to adjust claims (Colorado, District of Columbia, Illinois, Iowa, Kansas, Maryland, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Virginia, Wisconsin); all other states do require licenses.

If a state has declared a state of emergency for a major catastrophe, emergency licenses can be issued. Emergency licenses are granted to out of state adjusters who don’t currently hold a license for that particular state. These licenses are temporary and are generally good for 3-6 months but can be extended if necessary.

The major hurdle in obtaining an emergency license is that you must be sponsored by an employer for approval to be granted. While this shouldn’t pose too much of an issue for those who have been in the industry for some time, it may be difficult for newbies who do not have an established relationship with an insurance carrier, IA firm, or restoration company. Understandably, employers would prefer to sponsor seasoned adjusters, but this is not to say that rookies are never granted emergency licenses.

Most states only require that you pass the state exam to apply for your adjuster’s license, however there are seven states that require additional pre-licensing requirements. These states require that you complete a specific amount of education hours before registering for the state exam.

The states with pre-licensing requirements: Alabama, Arkansas, Florida, Georgia, Mississippi, Indiana, and Texas

While there are no post licensing requirements outside of the renewal requirements, there is some training that is recommended. Courses to increase your Xactimate skills will prove to be very useful and once you are more confident, you can become certified at three different levels. XM8 certification helps employers understand how efficient and experienced a user may be. FEMA offers courses for those looking to become NFIP certified, and insurance carriers such as State Farm offer carrier specific certifications. In some cases, IA firms will offer classes to adjusters on their roster to help them obtain additional certifications.

Each state has their own rules and guidelines when approving licenses for those who have been convicted of a felony or misdemeanor. Most states do impose some sort of variation of “licensure may be denied if the applicant has ever been convicted of a felony or misdemeanor” within their regulations. Be sure to check your state’s Department of Insurance’s website or call the licensing department if you have questions about your eligibility.

When determining if an applicant will be approved or denied, states typically take into consideration a few factors of the offense. For example, the type and severity of the offense, and how long ago it happened. Most importantly, they look to see if the offense involved fraud and/or dishonesty, or was financially motivated, as these would be significant red flags when dealing with insurance. Oftentimes a misdemeanor does not affect licensure approval, however, this is not definite and is based on a case by case scenario.

Be honest about your criminal history when applying for your license and on your job applications. If your criminal history is not reported, and it is later discovered that you have a history, you will most likely lose your job and your license.

It should also be noted that employers may have more strict hiring guidelines than the state’s guidelines for licensure approval. This means that while you may be approved for your license, employers may have differing hiring policies regarding criminal history.

Auto claims can be broken down into two main parts: appraising the damages and settling the claim. Most adjusters don’t have the specialized knowledge regarding auto repair, and this is where auto damage appraisers take over. Their responsibility is to inspect the vehicle, calculate the worth of the vehicle, and write an estimate of repair for the vehicle. The adjuster then takes this information and settles the claim.

Most states require adjusters obtain both licenses if they’re handling the appraisal and settlement of the claim. Connecticut and South Carolina require adjusters obtain both licenses if they intend to work any part of an auto claim.

For the most part, it should take around two weeks to receive your license after you have submitted your application, although this time frame can vary from state to state. For example, Indiana and Florida can take just a few days, whereas Texas can take up to 6 weeks for the license to be issued.

If you are preparing for CAT season, the following states are recommended to obtain your licensure. For hail season, which occurs mainly from March to August: Texas, Colorado, Minnesota, Illinois, and Nebraska; for hurricane season which is at its peak from June to November: Florida, Texas, Louisiana, Mississippi, Alabama, South Carolina, and North Carolina.

Xactimate, and other Xactware products, are not supported on MacOS systems (Apple desktops and laptops). XM8 does work on most other computers, whether they be desktops or laptops, that use the Windows operating system.

The producer of XM8, Xactware, exclusively offers the Xactimate User Certification program. This program consists of 3 exams that test your knowledge and proficiency in using the software. There are three levels of certification, and you must pass the first one before proceeding to the next level. The three levels are as follows: Level 1 – Fundamentals, Level 2 – Proficiency, and lastly, Level 3 – Mastery. You can learn more about Xactimate Certification here.

Xactware offers a free 30-day demo trial, which is a great time to get familiar with the software functions. Be sure that you are ready to utilize the program as soon as you download it, as the trial period begins upon downloading, not first use. Once the trial period is up, XM8 can be purchased solely through Xactware on a subscription basis, starting at $270 per month. Subscription prices differ based on the length, version, and device being used (desk, mobile, or online). It is recommended to take a conservative approach when first purchasing XM8, and check with your employers as they may provide computers/laptops with the software already available. For more on Xactimate pricing, check out their website.

Downloading the 30-day demo software can take anywhere from 2-6 hours.

Start by ordering and downloading the 30-day demo software from the Xactware website. Be sure to check the Xactimate System Requirements within the website prior to ordering and downloading. Subscriptions can also be purchased from the Xactware website.

Xactimate 28 was used by adjusters for years and was the only option available until recently. X1 is a cloud-based version of the same estimating software. It has a slightly different user interface and some buttons have been relocated. Over the last year, Xactware has been phasing out Xactimate 28 and transitioning everyone to X1. In May of 2022, Xactimate 28 officially reached its end of life and no longer functions. The only option available now is X1.

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