Insurance Adjusting Jobs Key Terms

Navigate the insurance adjusting jobs wilderness with the right terminology

By Lisa Maloney

The insurance industry can be confusing to seasoned executive and entry-level employees alike. If you're looking at becoming an insurance adjuster—the insurance company's foot soldiers on the ground—you should have a basic understanding of the key terms involved.

Before you enter into the insurance industry, make sure you understand the difference between the types of insurance adjusters, the types of property values and the other types of employees you might encounter in an insurance adjusting career.

Insurance adjuster

Insurance adjusters are responsible for planning and organizing the work involved in processing a claim. They may interview claimants, assess damaged property and goods and consult with other professionals.
Try: The US Bureau of Labor Statistics offers a detailed explanation of an insurance adjuster's job description and duties.

Independent adjuster

Independent insurance adjusters are adjusters not employed by a specific insurance company. They must operate within specific licensing regulations dictated by the insurance department of any given state.
Try: The State of New York Insurance Department gives details about the business requirements for independent insurance adjusters in that state.

Catastrophe adjuster

When a major catastrophe takes place, so many insurance claims may be filed that there aren't enough insurance adjusters to handle them all. In this case a non-resident adjuster, or catastrophe adjuster, from out of state may be called in to help assist the processing and gathering of information for insurance claims.
Try: Insurance Schools gives information about when a catastrophe adjuster might be called in and what the scope of his or her services would be.

Public adjuster

A public insurance adjuster is an independent insurance adjuster that is hired by the insurance claimant as opposed to the insurance company. Public insurance adjusters usually work in exchange for a percentage commission of the insurance settlement.
Try: MSN Money explains the role of a public adjuster and discusses the possible benefits of hiring a public adjuster.

Insurance appraiser

An insurance or property appraiser's job is to evaluate the value and often the cost of repair for a specific piece of property. Most appraisers are trained in dealing with a specific type of goods, such as auto property damage or real estate property damage.
Try: Independent Automotive Damage Appraisers gives history about the automotive damage appraiser's job and role in insurance adjusting.

Actual cash value

The replacement cost of an item involved in an insurance claim is the amount you'd have to pay to replace that item with something similar. The actual cash value, on the other hand, is the replacement cost less depreciation because of age or condition. An insurance appraiser needs to know the difference between the two, and be able to assess them quickly and accurately.
Try: The Allen Financial Insurance Group gives an in-depth explanation of the different between actual cash value and replacement cost.