Insurance Adjuster - How Much Money Does

a Claims Adjuster Make?

How much insurance claims adjusters can make per annum is the subject of

considerable interest and speculation to those interested in a career in claims. As

unstable weather continues into the fall, and the Atlantic hurricane season reaches

its stride, its important to correctly understand the financial landscape of the

adjuster industry.

Some folks have heard from their girlfriend's brother or an estranged uncle that

claims adjusting is a money tree. The money tree sits there blooming Benjamins,

apparently just waiting happily to be plucked by any newcomer with the inside

scoop. And as an added bonus, you really don't have to do work. The opposite

extreme is my own previous

misconception of the monetary

compensation for claims adjusters

which is that they made next to nothing

and it was essentially a dead end job.

This is as far from the truth as the

money tree concept but, I would hazard

to guess, a much more prevalent

misunderstanding.

So how much money does an

insurance adjuster really make?

According to the U.S. Department of Labor, claims adjusters earned an average of

$44,220 in 2004. The top ten percent earned more than $72,620. The bottom ten

percent earned less than $27,220. This seems like a fairly significant disparity.

What type of adjuster is at the bottom and what type at the top?

The answer to this question depends largely upon the type of claims adjuster you

are referring to. In general, there are two types of adjusters: staff adjusters who are

salaried employees of an insurance carrier, and independent adjusters who are

independent contractors working for adjusting firms. This initial difference will

make as much of a difference in pay structure as the type of claims actually

handled - from worker's compensation to multi-million dollar commercial

properties.

Staff adjusters are typically going to be earning less than independent adjusters and

in some cases dramatically less. $25,000-$60,000 is a reasonable salary range for a

career staff claim adjuster.

An independent adjuster in a good year, however, especially if he or she works

catastrophe claims, can make well in excess of $100,000.

Staff adjusters can make a good stable living. For independent adjusters, the

opportunity can be a little more interesting and, I think, exciting. Independent

adjusters working catastrophe claims make essentially a percentage of the amount

of each claim they settle. This system of payment is known as a fee schedule and is

formulated differently for each insurance carrier represented and storm situation

confronted. For example, an independent adjuster handling hurricane claims may

receive a fee schedule that pays $500 for

claims between $3,000 to $5,000, $650 for

claims between $5,000 and $7,500, and

$750 for claims between $7,500 and

$10,000. An adjuster will receive between

60-70% with the other 30-40% going to the

adjusting firm they work for. Hurricane

adjusters can easily average $10,000

settlement per claim and thus average

between $400 and $500 dollars in their

pocket per claim. A good adjuster should

be closing 2 to 4 claims per day with superb adjuster closing 4 to 7.

Making over $1,000 a day as an independent adjuster working catastrophe claims

is common and very attainable. In this way, a good independent adjuster can

surpass six figures income in less than six months.

So, is this the money tree after all? Well, not so fast. Remember that catastrophes,

especially catastrophes sufficient to employ significant numbers of adjusters, are

relatively few and far between. During "dry" spells for independent adjusters, work

can be scarce and competition fierce for the claims that do come along. That said,

there is a tremendous and exciting opportunity for very real, very lucrative money

when disaster does strike.

Whether its operating on staff or as independent contractor, claims adjusting offers

potential for solid and, in some cases, spectacular income.