Adjuster

When you file a house insurance claim, your insurer will send the claim through an adjuster before it will pay out benefits. An adjuster investigates both property damage and liability claims to verify that coverage applies, determine the magnitude of the losses, and arrive at a fair settlement for both the insured and the insurer. Claims adjusters arrive at the settlement amount by talking with witnesses and the person who filed the claim, reviewing hospital and police records, and assessing any property damage to estimate the extent of the insurer’s liability. Read on for more information on the different types of claims adjusters, their specific duties, and the education and training requisite to become an adjuster.

Types of Adjusters

The three classes of insurance adjusters are explained below.

1. Staff adjusters. Adjusters who work for an insurance company. For example, if you file a claim with your house insurance company, the insurer will have a staff adjuster process the claim.
2. Independent adjusters. These adjusters are not in the employ of an insurance company; rather, they work on an independent contract basis. Independent adjusters can work for multiple home insurance companies, not just one. As with staff adjusters, independent adjusters work to protect the rights of the insurance company for which they are working and reach a fair settlement for all parties involved.
3. Public adjusters. Public adjusters work only for the policyholder. Policyholders often hire public adjusters when they fail to reach an agreeable settlement with staff or independent adjusters. Public adjusters usually charge a percentage of the claim settlement as their fee (e.g., 10%).

Duties of Claims Adjusters

The duties of home insurance adjusters include the following:

• Handling claims in an efficient manner
• Completing paperwork
• Following appropriate procedures
• Communicating with claimants and policyholders
• Examining liability
• Assessing property damage
• Negotiating with the providers of certain services and products to estimate the cost of repairs or replacements for the purpose of claim settlement
• Investigate and verify the different aspects of the claim, such as claims of structural damage, possession loss, and living expenses
• Defending the rights and interests of the party or person the adjuster represents, such as the policyholder or the insurance company

Required Education & Training

About 45% of claims adjusters have at least a bachelor’s degree, though a four-year degree is not required to enter the profession. Adjusters do not have to major in a particular field of study to be qualified, but degrees in accounting and business are considered helpful. Depending on the nature of the work adjusters do, they may need additional education to perform their duties satisfactorily. For instance, adjusters who handle investigative work may have backgrounds as private investigators, law enforcement officers, etc. Similarly, adjusters who handle health or life insurance claims may need experience in the medical field. In addition to meeting certain educational requirements, adjusters must also comply with the licensing standards of their states. Many states require adjusters to complete certain classes and pass exams in order to obtain a license to practice.