Can't negotiate with insurance companies

We have a relatively new law in our state that does not allow us to “negotiate” with the insurance companies on the behalf of a residential owner regarding roof repair or replacement. Up until recently, we always provided a by-item detailed listing, with pricing, of what we did to repair/replace the roof to the insurance companies. As you would expect, it gave them the opportunity to push back on supplements they didn’t feel they should have to reimburse.

We’ve moved to providing a “scope of work” list of items with only a total price - no line item pricing. So, now they are either a) insisting they get the line item pricing anyway or b) asking for that level of info from the homeowner who, of course, isn’t in a position to either “negotiate” or isn’t comfortable standing their ground on our mutual behalves.

In addition to saying we don’t wish to break the law (in so many words) by negotiating with them, we tell them that the homeowner has every right to choose whom they want to do the repairs (and they chose us), we use fair market pricing, they could find some other roofer who is equal in total pricing to us or higher, etc. to get them to accept our submission.

Have you encountered this in your area and, if so, how are you handling it so as to minimize the push back and get paid what you’re worth/should be?

Where are you? Texas? Missouri? If either, I don’t believe you are interpreting the law correctly.

Here’s the Senate bill. The lines in question start at 77. I keep re-reading them and can come to no other conclusion about what they mean. Senate Bill 101 in Missouri

I’m not going to read your entire Senate Bill. There is a significant difference between submitting your estimate and negotiating pricing. But if you’re concerned, just submit your estimate to your Customer and let them haggle with the insurance. As the policy holder, they can negotiate or do whatever they wish. I think you’re reading the Senate Bill too literally but perhaps you should contact some other Contractors in the area or an Attorney.

I’m curious to see how you finally resolved this. My guess is you found out that what you are doing is not technically “negotiating” anyway… you are literally submitting to them the cost of your supplements. Negotiating is what a public adjuster and/or attorney does as the authorized representative to discuss particular policy matters. You should be on safe ground, yes, and give them the pricing you are worth. (Hint: don’t sell yourself short. You do NOT need to “bid” to an insurer.)

It’s been a mixed bag. We’re actually back to submitting detail most of the time and trying to do a better job of rationalizing each line item.

Most, if not all, states have UPPA statutes. That’s unauthorized practice of public adjusting. It’s to protect homeowners from unscrupulous contractors who insert themselves between homeowners and their insurance companies, and then hold the homeowners hostage sometimes for many weeks while the contractor makes continued failed attempts to bend the insurance companies to their inflated estimates.

This happens. Believe me. I know.

Also, thanks for the link to the Missouri statute. I really like the section allowing homeowners to cancel a contract within five days if the insurance company denies all or any part of a claim. If our state had that statute a certain disreputable roofer here would have been prevented from suing dozens of elderly residents with his insurance contingency liquidated damages scam and relieving them of their retirement savings.

I’ve encountered this before. I do supplement work for a roofing company in Wildwood. I’ve been successful in overcoming adjuster objections to work with me by simply notifying them (verbally and/or written) that I am calling to discuss and reconcile our scopes. I never use the word “negotiate.” I haven’t had any problems.

Neither XM8 or the insurance company can set the pricing. You operate in a free rather than forced market. You should price your work at top but fair and honest free market rates and include proper cumulative GC O&P. The so-called “standard” 10% and 10% GC O&P, BTW, may or may not be proper for your company.

When you properly price your ins restoration work that covers all of the repairs and no other BS, and be clear with the insured, you can afford to give back a bit of your profit (ins company “negotiates” with you…IOW, asks you to accept a bit less…you didn’t negotiate, you simply agreed to the adjustment.