In May 2021, after severe cold storms and four days of rolling blackouts, Rep. Shawn Thierry (D-Houston) stated that Texas will allow insurance adjusters from outside the state to operate with temporary licenses. This comes after Rep. Thierry encountered severe flood damage in his home after water pipes started to burst from single digit temperatures and occuring power outages. Reports have indicated that since 2008, thousands of businesses and individuals have fallen victim to unlicensed adjusters performing services in the state of Texas. 

The Unauthorized Practice of Public Adjusting or UPPA has been at work to assist business owners and individuals to help curb the growing problem of unlicensed adjusters within the state of Texas. The latter shows that more individuals are now using Texas as a first choice to apply for a DHS license. 

To help understand what DHS adjuster licenses are, we’ve managed to scrape together a cohort of information that will shed more insight on how it works and what you can do with it.

Understanding a DHS Adjuster License 

What is a Designated Home State Adjuster Licence? 

Some states do not offer adjuster licenses for companies or individuals. So in return, Texas allows some individuals to apply as a registered adjuster which designates Texas as their home state. 

This means that when you’re applying from a different state, for example, Vermont, your “designated home state” would then become Texas. You can then offer adjusting services within your state and in the state you’re registered, in this case, Texas. 

Who can apply for a DHS Adjuster License?

It’s not always to say everyone can apply for a DHS adjuster license. In some cases, whereas your state may already offer these terms of insurance services, you can apply within your state’s jurisdiction. Once you’ve applied, and received your license, you can then conduct business within your state. 

You can register outside of your states’ jurisdiction if it allows. This isn’t a common occurrence, and only increases the administration and cost involved in the process. 

What can I do with my DHS Adjuster License? 

In the event of a catastrophe occurrence, such as the severe cold storms and blackouts in Texas earlier this year, the license enables you to act on behalf of a policyholder whose claims have been denied or unsuccessful with their insurance company. 

There are of course instances where you will be required to work outside of your jurisdiction, but in most cases, adjusters are only most active in the event of major natural disasters or accidents. 

Why should I apply for an adjuster license? 

There are a few reasons why applying for an adjuster license might sound attractive. Many companies and online platforms have concluded that the two main reasons for applying include non-resident licensing and career marketability. There is a growing demand for insurance adjusters across the U.S. as a growing fear of natural disasters becomes more and more apparent. 

How do I apply for a DHS Adjuster License? 

There is quite a vigorous process involved to successfully receive an adjuster license, and each state has its prerequisites. 

For a Texas Adjuster License you will need to:

1. Apply for the DHS Adjuster License Pre-Exam. 

2. Once passed, you can then apply and complete the DHS Adjuster License Exam. 

3. If you successfully pass, a full background check will be conducted, and your biometrics will be taken. 

4. Complete your DHS Adjuster License Application form. 

5. Your application will go under review. 

It is highly recommended that you already have some background experience or understanding of insurance. This will help you throughout the examinations and hopefully boost your application. 

A final take 

A Designated Home State Adjuster License is only applicable if an individual has completed the exams, and has received their adjuster license. More so, DHS is offered for those individuals who are residing in states that do not offer adjuster license insurance services. Finally, it’s recommended to apply within your state if you can to avoid any unnecessary costs and administration.