The formula to maximize your income as an insurance claims adjuster is really pretty simple: More Claims Closed = More Money.
The quickest way to close more claims is to get reciprocal licenses so you can work in more states. Holding licenses in the top 10 states will make you a more attractive candidate to the IA firms, and it will make you more money. Win! Win! But not all state licenses are created equal. Knowing what states are highest in demand and why will help you develop a plan of attack for expanding your licensing resume.
We worked with independent adjusters, insurance carriers, and IA Firms to develop our list of Top 10 States for Reciprocal Licenses. You will need to pay licensing fees for each state, but you won’t have to take their exam. We recommend creating a budget or plan so you can start adding these to your resume as soon as possible and increase your chances of getting employed.
#1 FLORIDA
No surprise here! If your home state isn’t Florida, then it should be the first reciprocal license on your wishlist. While the Sunshine State is known for its devastating hurricanes, regular storms and flooding make it a claims hotbed year-round. You can obtain the Florida license quickly with a simple online application. It automatically renews as long as you complete your home state CE and process your home state renewal on time.
#2 TEXAS
Everything is bigger in Texas, and that includes the number of insurance claims filed every year. It’s size, population, and weather make this a strong #2 on our list. Everything from neighborhood floods to crop drought, fires, tornados, hail, wind, and hurricanes keep adjusters working year-round. Again, the license automatically renews as long as you complete your home state CE and process your home state renewal on time.
#3 LOUISIANA
It’s no secret that Louisiana gets pummeled by storms and hurricanes on a regular basis. Although in recent years, flooding has been a near-constant issue for the Gulf state. Having your Louisiana license has become an almost ‘permission-to-play’ type license. In other words, you’ve gotta have it. The reciprocity and compliance process is the same as most licensing states: apply for the license through reciprocity, keep your home state up-to-date, and you are good to go on the bayou.
#4 ALABAMA
Rounding out the Gulf state must-haves’ is Alabama. It is a hotbed of hurricanes, storms, and, as of the past few years, tornado activity. The state is also a hub for Independent Adjusting Firm offices. Alabama has become another must-have license. Again, apply through reciprocity and keep your home state compliance up-to-date to keep the ‘Bama license active. It’s worth noting here that while Mississippi is a Gulf state, it’s not as essential from a licensing standpoint as the other three. Louisiana and Alabama have a lot more coastline and their borders protect Mississippi from widespread hurricane damage. We do recommend obtaining a MS license eventually, but it didn’t make our Top 10.
#5 GEORGIA
Moving over to the Southeast Atlantic states, Georgia is next on our list. Atlantic storms seem to be less and less predictable, leading to insurance carriers and IA Firms seeing a big increase in the number of claims in the Peach State. Georgia has felt the most significant impacts of hurricanes staying stronger for a longer period of time as they move inland. As with all the above states, reciprocity makes it easy to get Georgia in your wheelhouse as soon as you can.
#6 NORTH CAROLINA
The Tar Heel state is the second of our Southeastern Atlantic states, but just barely. Truthfully, it’s every bit as important as Georgia. The beautiful coastline and barrier islands of North Carolina are heavily populated. And Hurricane Helene was a devastating reminder of how vulnerable the state is overall. Combine that with how it bulges east into the Atlantic Ocean, and it results in a lot of people and property being in the way of storms. In case you were wondering, South Carolina falls in the same category as Mississippi. It’s a good license to have but not a Top 10 state.
#7 MINNESOTA
We all know the devastation hurricanes and tornadoes can have on our southern states. However, did you know that “bad” weather actually affects the northern states more frequently? Even standard winter storms can produce heavy snowfall, freezing problems, ice, car issues, etc., resulting in tens of thousands of claims every year. If you are looking for year-round work, having a license in northern states like MN, MI, and IN is essential. We recommend starting with Minnesota. Apply for the license through reciprocity and then keep your home state up-to-date and… well, you know the drill.
#8 MICHIGAN
Eighth on our list and the second of the northern states is Michigan. The reasons are essentially the same as in Minnesota. Use reciprocity, keep your home state license up to date, and make sure you bring a BIG jacket because while these northern states offer a ton of opportunity…it is cold, cold, cold.
#9 ARKANSAS
With tornadoes seeming to occur all over the country, Tornado Alley can easily be forgotten these days. It doesn’t help that some of the alley states don’t license adjusters (i.e. Nebraska and Kansas.) But Arkansas and Oklahoma still see a ton of claims every single year due to supercell storms. They round out our Top 10 list for that reason.
#10 OKLAHOMA
Oklahoma has more than just wind sweepin’ down the plains these days. While the Sooner State is known for its frequent and/or massive tornadoes – hail, wind, fires, ice and flooding action have made it a hot commodity license over the past decade.
Honorable Mentions
NEW YORK
New York DOES NOT offer reciprocal licenses to adjusters from any other state. To obtain a license from New York, you will need to find a great exam prep course (Might we recommend AdjusterPro?), pass the state exam, which is one of the most challenging in the country, and meet their unique licensing requirements. However, New York always needs more adjusters. It’s that simple. We hear it from our IA Firm partners. We hear it from our insurance carrier clients. And we hear it from our students who find work solely because they were one of the few who had the NY license. If you want to go to work immediately, this license is the fastest way there.
CALIFORNIA
California, by all accounts, has a better handle on daily claims, but it only takes one disaster to create an adjuster shortage in the state. Wildfires, mudslides, and earthquakes are a constant threat. And let’s not forget that 40 million people live there! California has also had issues using emergency adjusters who don’t understand their unique laws in the past, so they prefer not to use out-of-state adjusters except when absolutely necessary. When they need adjusters, and they often do, holding a California license really makes you stand out. To obtain a license from California, you’ll need to take a great exam prep course (like AdjusterPro’s), pass the state exam, and meet their unique licensing requirements.
Last Thoughts on Adjuster License Reciprocity
Most reciprocal licenses today are not based on what license you hold but on whether or not it is your home state license. So if you want to reap the benefits of reciprocal licensing privileges, get your home state license first. If your home state doesn’t license adjusters (CO, DC, IL, KS, MA, MD, MO, ND, NE, NJ, OH, PA, SD, TN, VA, WI), then you need a Designated Home State or “DHS” license.
DHS licenses allow an adjuster to operate just like adjusters from licensing states, which includes receiving reciprocal licenses. Plus, most employers require you to hold a license, regardless of your home state.
Today, most licensing states are reciprocal with one another but it isn’t universal. Once you’ve read through the list and are ready to start applications, check out our Reciprocity Map to see if a state will offer you reciprocal licensing privileges.
No matter where you are at in your adjusting career, AdjusterPro can help. Whether you’re getting your first license, need help with additional licenses, or want a simple way to complete your continuing education online, we’ve got you covered.
