Claims Adjuster: Definition, Job Duties, How To Become One (2024)

What Is a Claims Adjuster?

A claims adjusterinvestigates insurance claims to determine the extent of insuring a company's liability. Claims adjusters may handle property claims involving damage to structures, and/or liability claims involving personal injuries or third-person property damage.

A claims adjuster reviews each case by speaking with the claimant, interviewing any witnesses, researching records (such as police or medical records), and inspecting any involved property.

Key Takeaways

  • A claims adjusterinvestigates insurance claims to determine the extent of insuring a company's liability.
  • Claims adjusters may handle property claims involving damage to structures, and/or liability claims involving personal injuries or third-person property damage.
  • They either work directly for the insurance company, or they may be a freelanceadjuster hired by the insurance company to handle specific claims.
  • Being a claims adjuster is a very stable career: there is always demand for this role, even in a recession.
  • In order to become a claims adjuster, check out your state's guidelines on licensing. In states where a license is required, many require a pre-license course and continuing education credits, after the license is obtained.

Understanding a Claims Adjuster

Claims adjusters verify policyholder requests for funds from an insurancepolicy. Theydetermine a fair amount for settlement. These can be any type of claim, from personal injury to property damage. In property damage claims, the main role of the insurance adjuster is to carry out a detailed investigation into the claim by:

  • Inspecting the damage
  • Reviewingpolice reports
  • Speaking to witnesses
  • Talking toproperty owners

For example, if ahomeowner makes an insurance claim due to a tree falling on the house, a claims adjuster would interview the claimant (homeowner), along withany witnesses, andinspect the property to determine the extent of the damageand the costs of repairing the property. The claims adjuster then submits documentation to the insurance companydescribing the incident and recommendations for the claim amount (how much money the insured will receive from the insurance company to repair the property).

Once the investigation is complete, the adjuster will then be in a position to determine the amount of the insurance company’s potential liability to its insured. Adjusters very often try to convince property owners to accept less money than their claim is worth.

How to Become a Claims Adjuster

Becoming a claims adjuster is not typically a career path that people think about, but is an industry in high demand of careers. Typically, insurance claims adjusters need at least a high school diploma, although an associate's or bachelor's degree can be preferred. From there, individuals will need to study and pass a licensing exam.

Some states require a certain number of hours of training that must be done ahead of time. From there, insurance adjusters need to complete continuing education credits in order to keep their license. In California, licensed independent insurance adjusters must complete a minimum of 24 hours of continuing education, per every two-year license term.

For example, in Florida, insurance claims adjusters musttake and pass the Florida Adjuster Examination from an approved vendor. The state also requires adjusters to complete 24 hoursof continuing education every two years.

The following jurisdictions do not require licenses for insurance adjusters:

  • Colorado
  • District of Columbia
  • Illinois
  • Iowa
  • Kansas
  • Missouri
  • Maryland
  • Nebraska
  • New Jersey
  • North Dakota
  • Ohio
  • Pennsylvania
  • South Dakota
  • Tennessee
  • Virginia
  • Wisconsin

$61,465

The average salary of a claims adjuster in the U.S., according to Indeed.com.

Benefits of Becoming a Claims Adjuster

Claims adjusters have very stable careers: there is always demand for this role, and even in a recession, there will always be a need for adjusters to come and estimate the damage caused by natural disasters for individuals, businesses, and corporations. In addition, it's pretty easy to become a claims adjuster, if you're willing to put in the work and pass the licensing exam.

In addition, claims adjusters have a lot of freedom in their work. It's definitely a mobile job, but claims adjusters work on everything from estimating hurricane damage to doing paperwork, consulting, inspection, and more. It's really a job that you can build to focus on what you love and hire out for the parts you don't. Especially if you're an independent claims adjuster, you can choose how you charge for the job and how you're paid.

Working With a Claims Adjuster

Claims adjustersworkfor the insurance company. They either work directly for the insurance company, or they may be a freelanceadjuster hired by the insurance company to handle specific claims. In either case, they will not have your best interests in mind, as their employer is the insurance company. It is agood idea to consideremploying your own independent claims adjuster,whoworks to protect your interests in a claim. Your own claimsadjuster willdoeverything possible to minimize your loss. This lack ofconflict of interest between the adjuster andinsurer is in the claimant's favor.

If you are hit by an accident, the best thing you can do is provide detailed descriptions of all the items lost and make sure to create a home inventory, especially through photographs and videos. Get your own estimates for repairs, and make sure to do your due diligence.

Does an Insurance Adjuster Get Paid Well?

According to Indeed.com, a claims adjuster's average salary in the U.S. is $61,465 per year. However, a claims adjuster's salary will depend, based on how many claims they're working on at once. Some estimate that adjusters can earn thousands of dollars a week.

Is Being an Insurance Adjuster a Stressful Job?

Being an insurance adjuster is a relatively flexible job, but the process of negotiating and communicating with often distressed parties can add stress to the job.

How Can I Negotiate With an Insurance Adjustor?

If you are hit by an accident, the best thing you can do is provide detailed descriptions of all the items lost and make sure to create a home inventory, especially through photographs and videos. Get your own estimates for repairs, and make sure to do your due diligence.

How Long Does an Insurance Adjustor Have to Respond?

It depends on the state; each state will issue different guidelines for insurance adjusters to respond to a claim.

Claims Adjuster: Definition, Job Duties, How To Become One (2024)

FAQs

Claims Adjuster: Definition, Job Duties, How To Become One? ›

Claims adjusters evaluate and settle insurance claims on behalf of insurance companies. Their responsibilities include investigating the claim, gathering evidence, determining the extent of the insurance company's liability, negotiating settlements, and communicating with all parties involved in the claims process.

What are the job duties of a claims adjuster? ›

Duties
  • Investigate, evaluate, and settle insurance claims.
  • Determine whether the insurance policy covers the loss claimed.
  • Decide the appropriate amount the insurance company should pay.
  • Ensure that claims are not fraudulent.
  • Contact claimants' doctors or employers to get additional information on questionable claims.

Why do you want to be a claims adjuster answer? ›

I was motivated to become a Claims Adjuster because I've always been interested in helping people navigate difficult situations and ensuring they receive fair treatment from their insurance policies. Question #2.

How to answer insurance adjuster questions? ›

What Are Some Tips for Talking to an Insurance Adjuster After a Car Accident?
  1. Be Prepared. ...
  2. Stick to the Facts. ...
  3. Limit the Information You Share. ...
  4. Avoid Giving Recorded Statements. ...
  5. Document Your Communications. ...
  6. Avoid Settling Too Quickly. ...
  7. Ask Questions. ...
  8. Consult a Lawyer.
Aug 26, 2024

How to pass a claims adjuster interview? ›

By practicing effective communication, acknowledging all concerns, and reviewing assessments when necessary, candidates can de-escalate potential conflicts and devise effective solutions. What to listen for: Ability to maintain professionalism in stressful situations. Excellent communication skills.

What skills are needed to be a claims adjuster? ›

They need to be skilled in customer service, multitasking, and negotiation. They should be able to analyze information and make fair decisions. They must also be able to communicate effectively with policyholders, claimants, and attorneys. Below we've compiled a list of the most critical claims adjuster skills.

How do I succeed a claims adjuster? ›

Self-discipline – essential for working independently. Project Management – the ability to work on multiple claims simultaneously. Computer Skills – proficiency in typing and using certain independent adjuster software programs. Excellent Organization – since sloppiness can lead to costly errors.

What makes you a good match for a claims role? ›

Example: “Working as an insurance claim handler requires a broad range of skills. The most important of these skills is probably attention to detail. You also have to be methodical, a good communicator, a good observer, and possess a great deal of patience.

Why are you interested in this position? ›

Talk about specific examples of how you can help this company achieve their goals and highlight any relevant transferrable skills that will make you stand out as the right candidate. Write down any recent achievements you can talk about or any challenges you've faced recently that might be related to this new job.

Why do you want to work here? ›

The best way to prepare for this question is to learn about the products, services, mission, and workplace culture of the company. Try to mention the aspects of the company that align with your values and how this role really fits in with your career goals.

How stressful is claims adjuster? ›

Insurance claims adjusting is a high-stress job that can be mentally and emotionally draining. Claims adjusters often work long hours, handle difficult clients and situations, and have to manage multiple claims simultaneously. All of these factors can lead to stress and burnout.

What is the STAR method for claims adjuster? ›

Understanding the STAR Method

Situation: Describe the context within which a task was performed, or a challenge was faced. Task: Explain the specific task or challenge involved. Action: Detail the actions taken to address the task or challenge. Result: Shre the outcomes or results of those actions.

Why am I interested in the claims adjuster position? ›

This job gave me great experience in communicating effectively with clients and in handling conflict. I am excited to step into this role because it utilizes these communication skills while offering me more opportunities for variety and growth.

Where do you see yourself in 5 years? ›

"In five years, I see myself as an important part of this organization, having grown in my role and contributing to the company's success. I want to improve my skills in [mention specific skills relevant to the job], and take on more responsibilities, working with my team to reach our goals."

Why are you interested in this position as a claims specialist? ›

I am comfortable working with people from all different backgrounds, including those who are upset or angry. In my previous role as a claims specialist, I had the opportunity to work with customers who were frustrated by the claims process and the length of time it took to resolve their issues.

How stressful is being a claims adjuster? ›

Insurance claims adjusting is a high-stress job that can be mentally and emotionally draining. Claims adjusters often work long hours, handle difficult clients and situations, and have to manage multiple claims simultaneously. All of these factors can lead to stress and burnout.

What is the difference between a claims adjuster and an insurance adjuster? ›

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.

What is a claims representative job description? ›

Claims representatives work for insurance companies to settle claims through the evaluation of facts of a customer's situation surrounding their claim. They are responsible for determining whether the loss is covered and what compensation should be.

What personality type is a claims adjuster? ›

ENTP's are particularly well suited for careers as insurance adjusters, examiners, and investigators because they enjoy working in fast-paced challenging environments and because this career is based on problem solving and is highly dynamic, ENTP's can be constantly engaged and developing new skills.

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