Independent Insurance Claims Adjuster - 4 Steps to Become a Cat Adjuster

Independent catastrophic claims adjusting or "cat"adjusters fluctuates greatly and depends on the
adjusting is an exciting, lucrative, and relatively unknownfrequency and severity of catastrophic weather
occupational niche in the insurance industry. Whenevents. In 2005 and 2006, in the wake of Hurricanes
disaster strikes, cat adjusters or "storm troopers"Katrina, Rita, and Wilma, finding work as a cat adjuster
answer the call to assist insurance policyholders inwas almost as simple as raising your hand. 2007,
recovering from their losses. The work is challenging,however, saw surprisingly clement weather and did
personally fulfilling and can be surprisingly profitable.not produce many claims. Adjusting companies
Follow these 4 steps to become a licensed, trained,consequently could afford to be far pickier in their hiring
ready-to-deploy cat adjuster:process. 3 to 5 experience requirements became
#1: Obtain Your Adjuster Licensecommon and job prospects were bleak for new cat
It is highly recommended that you obtain an adjusteradjusters. At the time of this article, the 2008 storm
license as a first step in this career. Obtaining a licenseseason has been extremely tough on the Midwest
demonstrates to hiring companies that you are awith flooding, hail, and tornado. And with the anticipation
legitimate applicant, that you know the basics of claimsof a potentially huge hurricane year, adjusting
practice and policy, and that you are legally certified tocompanies are scrambling to fill their deployment
handle claims in the state you are licensed in. As arosters and are relaxing experience requirements in
general rule, it is best to first obtain a license in theorder to do so. Because demand is weather driven,
state of your residence. Many states, however, do nottiming is crucial in finding work as an independent
require a license to operate as an adjuster. Kansas,adjuster.
Missouri, Ohio, Pennsylvania, and Virginia are but a fewWho do I Work For?
examples. In this case it is suggested that you obtainIt isn't always correctly understood who cat adjusters
either a Texas or Florida adjuster license. Both licenseswork for. Lets clear this up. Technically, and for tax
are very well respected and highly reciprocal -purposes, an independent adjuster is an independent
meaning you can obtain other states licenses withcontractor that works for oneself. Work is typically
them without having to take that state's exam orobtained, however, through adjusting firms that in turn
required coursework. Texas and Florida adjustercontract with insurance companies to handle claims.
pre-licensing courses, which satisfy all requirements forFor example, after Hurricane Katrina, insurance
obtaining their respective state licenses, are available incompanies didn't have nearly enough adjusters on
either a classroom or online setting. Course tuition willstaff to handle the massive influx of claims. Acme
average $299 for online and $499 for classroom.insurance company, as a theoretical, would then give
After the course has been completed and you haveout 10,000 claims to be handled by Pinnacle adjusting
submitted your application to the regulating authority,firm. Pinnacle adjusting firm in turn hires individual
you can expect to be a licensed adjuster in just a fewindependent adjusters in sufficient numbers to handle
weeks.the 10,000 claims. Those adjusters who work
#2: Obtain Critical Adjuster Trainingefficiently and with little oversight (babysitting) get the
For those making career transitions from the residentialmost claims from Pinnacle. So, if you are looking for a
or commercial contracting industries, supplementaljob as a cat adjuster, you should be looking towards
training may prove unnecessary. But for those whogetting on with adjusting firm.
have little previous experience with construction, lossWhere do I Look for a Job?
analysis, estimating software, and standard methodsThere are several useful adjusting firm directories and
of repair, it is tremendously helpful to undertake somesocial networks that keep you apprised of adjuster job
practical training. Probably the most important training alistings. Adjusting firms maintain deployment rosters of
newly licensed adjuster should consider is Xactimatequalified adjusters who are eligible for being put to
training. Used by roughly 75% of independent adjusters,work in the event of a catastrophe. A new
Xactimate is the most popular estimating programindependent adjuster should aspire to join as many
today. Others, like MSB IntegriClaim, have their place,rosters as possible. The ultimate goal is to have a
and may be preferred by particular insurance carriers.steady stream of invitations to work which can be
Still, Xactimate is accepted by more carriers than anyaccepted or declined at your discretion. Remember,
other and is the best place to begin learning softwareyou are your own boss!
estimatics. Courses, ranging from 1 to 5 days ($400 to#4: Maintain Your Good Standing
$1,200) may be taken and courses taught by actualStaying on top of Continuing Education (CE)
claims adjusters ought to be preferred.requirements keeps you in compliance with your
#3: Find a Jobadjuster license and also gives you a legitimate
Becoming an adjuster doesn't make sense unlessopportunity to advance your knowledge base and skills
there is work to do. While ultimately there is no silveras an adjuster. CE opportunities abound in both online
bullet (outside the handy personal contact) for findingand classroom form. Failure to maintain CE compliance
work, understanding the employment landscape will gocan result in very steep penalties and forfeiture of
a long way towards helping you land a job.your license. Considering the ease by which most
Understanding Demandstates' CE is kept this should be easily avoided.
The bottom line is that the demand for independent