How Much Power Does Your Insurance Company’s Adjuster Really Have?

Sometimes, your insurance company’s adjuster feels like an all-powerful force. In other cases, they seem to be powerless and beholden to their employer’s restrictions.

So where does the truth lie? How much power does your insurance company’s adjuster really have?

Does your insurance company’s adjuster really decide how much your claim is worth – or are they just following orders? Are they on your side – or sneakily taking advantage of your naivety?

Let’s find out.

What an Insurance Adjuster Actually Does

To determine how much power an insurance adjuster has, it’s important to explain what they actually do.

The insurance company’s adjuster – not to be confused with public adjusters like ClaimsMate – is a salaried employee of your insurance company.

Also known as a staff adjuster or company adjuster, the insurance company’s adjuster is hired directly by your insurance company.

The staff adjuster’s primary job is to:

1. Investigate the cause of the loss
2. Assess the scope and cost of damage
3. Determine whether the claim is covered under your policy
4. Recommend a settlement amount based on the company’s guidelines

It may seem like a straightforward job: the adjuster assesses damage and issues a fair payout. But it’s important to remember one important thing: insurance adjusters work for the insurance company – not for you.

The insurance company adjuster’s overall goal is to protect the insurer’s financial interests.

That doesn’t mean they’re dishonest or sleazy; it just means they make recommendations to fit within the company’s profit goals, internal policies, and interpretations of your coverage.

How Much Authority Do They Really Have?

Many policyholders assume the adjuster has final say on their claim. But in reality, most adjusters have limited authority.

Here’s how it usually works behind the scenes:

1. The adjuster inspects your property and gathers documentation.
2. The adjuster creates an estimate, typically using software like Xactimate, which uses preset pricing databases customized to your local area
3. The adjuster’s estimate is sent up the chain for supervisory review
4. Managers, desk adjusters (supervisors), and even corporate claim committees approve or modify the payout

In other words, the field adjuster is often just one cog in the insurance machine; they’re one part of a larger decision-making process.

With that in mind, the insurance company’s adjuster doesn’t always have the authority to:

• Approve large settlements
• Interpret ambiguous policy language
• Add additional coverage items
• Override corporate claim handling guidelines

So even if your field adjuster seems friendly and sympathetic, and even if you’re doing your best to be nice, they’re still bound by company rules and budgets.

Common Myths About Adjuster Authority

Most of us aren’t insurance claim experts – and that’s okay.

Let’s clear up a few misconceptions about insurance company adjusters and the amount of authority they have:

Myth 1: The adjuster can increase my payout if I show them more damage.

Reality: The adjuster may note additional damage, but often can’t raise the settlement without management approval.

Myth 2: If I negotiate with the adjuster or be extra nice to the adjuster, I’ll get a better deal.

Reality: Adjusters typically have limited flexibility. Significant increases usually require escalation or a formal dispute (although it’s never a bad idea to be courteous to a fellow human being).

Myth 3: Once the adjuster says no, it’s final.

Reality: Remember, the insurance company’s adjuster is just one cog in the insurance system. You can still challenge the adjuster’s decision, request a reinspection, or hire a public adjuster to reopen negotiations.

How Do Insurance Company Adjusters Get Paid? How Much Do They Make?

The insurance company’s adjuster, or a field adjuster, is typically a full-time employee of your insurance company.

As a full-time employee, the adjuster typically receives a salary plus benefits.

Adjusters may also get annual bonuses, profit sharing, or other incentives depending on performance metrics – like the number of claims handled, their timeliness, and cost control. Some get annual bonuses based on the company’s overall performance, regardless of individual performance.

According to the Bureau of Labor Statistics, the median salary for an insurance claim adjuster, examiner, or investigator is $75,770 per year.

Who Really Has the Final Say?

So, who should you talk to when dealing with a contentious insurance claim? Who really has the final say in the insurance claim process?

Here’s how the hierarchy typically works:

• Field Adjuster: Conducts inspection and submits estimate
• Desk Adjuster/Supervisor: Reviews and approves estimate
• Claims Manager: Oversees larger or disputed claims
• Corporate Claims Department/Legal Team: Handles appeals, coverage disputes, and high-value claims.

Overall, your insurance company’s adjuster is likely part of a larger system with layers of oversight: they’re not a single barrier between you and a million-dollar insurance payout.

How Public Adjusters Level the Playing Field

Insurance companies and their adjusters know you’re not an expert.

That’s why some policyholders fight back by hiring their own expert – like a public adjuster.

While a field adjuster represents the insurer’s best interests, a public adjuster represents your best interests by:

• Conducting an independent inspection
• Reviewing your policy line-by-line
• Preparing a comprehensive estimate of damage
• Handling all communication with the insurer
• Negotiating for a fair, full settlement

Public adjusters aren’t bound by corporate claim guidelines or budgets. Their loyalty is to you. The more you get paid for your insurance claim, the more the public adjuster makes (they get paid on contingency, charging a pre-arranged fee at the end of your claim).

To schedule a no-cost consultation with a licensed public adjuster committed to your best interests – not your insurer’s bottom line – contact ClaimsMate today.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.