Insurance Approves Supplement including O&P

theres a lot of claims from a huge storm last December. I dropped off information at a residential residence and was called to do an inspection. I install tarps and he files a claim. I told him insurance would cover the tarp 100%, yada yada yada. he agrees if I help with the adjuster meeting I get to do the work. long story short he got approved.He wanted to do the interior painting, and he was going to service the garage door with the acv money and pocket the rest. thats his choice and its legal if he doesn’t want the depreciation on the garage. so I end up doing a supplement for him and because there were so many damages that needed to be addressed. supplement is approved for over $10,000.00 along with general contractors O&P that around $3,200.00 for the roof alone. the money for the tarps I installed also included.

keep in mind, Out of the $10,000.00 theres 4 downspouts included on our contract. Im the General Contractor what is this guy thinking. I have a contract that includes a mechanics lien on your house and you are going to keep the overhead and profit on the jobs I did the work for?

This is 100% bullshit. He called me. His roof was on 1 day after the shingles were on his roof and that is because the weather. his roof was an emergency and I got him on schedule over the owners roofs and everyone else. No hes fucking me over. (sorry for the language

Im a newby. only 4 months. Is there anything I can do? This has to be illegal right? policy holders are not aloud to pocket the money the insurance pays RCV to the homeowner. the homeowner pays his deductible and all of this money is paid to the gereral contractor the homeowner has a contract with.

He was greatful the whole time told the owner how much he appreciated me and how good I was to him. They both literally had a hand on each of my shoulders bragging about me to each other. now this? I still cant believe this guys doing this.

What is the law in Missouri? Can the homeowner get away with this legally. Contractors cant do anything in this situation? Hes keeping my o&p and its not right.


Depends on the contract. If it is solid, the owner of your company could potentially file a lien and take the guy to court. If it’s like most contracts I see, it’s weak and wouldn’t hold up in court against a decent Attorney.

It has to be illegal for him to keep the overhead.

It should be illegal to keep the profit because the rupe is made so that the general contractor can turn profit. Not the home owner.

Homeowner property is supposed to be restored. no better, no worse. His his pockets are way better since the depreciation is included on the supplement right. Now he has to do the work. Correct?

Even if the contract is weak, the homeowner can not keep my overhead and profit correct?

What does he have overhead on?

Two things the homeowner has going for him are that he has the money in his pocket and a lack of prosecution regarding home insurance fraud.


I never asked what the homeowner has going for him. Thank you for stating the obvious.

Question is, can the homeowner legally keep the overhead and profit money the insurers provided for the general contractor over everyone on the projecet?

And if its illegal profit most definetly goes to the G.C. as well since homeowners are not allowed to profit off of a claim.

Just assume I have a solid contract, work is completed, quality if work is good, ect…

When i look up o&p i cant find anyone talking about this issue and I know everyone has had issues of their own but this must be a common one almost everyone has had happen to them or someone they work with

Is my logic right or wrong?

I appreciate you buddy. Thanks for clearing that one up for me. I appreciate you

The guy is following the golden rule. The guy with the gold makes the rules. Legal vs illegal? Do you ever speed while driving and not get caught? It was illegal, correct? Doesn’t mean you get a citation every time you speed or break any other traffic law. The matter you’re dealing with is not likely a criminal matter, it is a civil issue. So if you want what you think is your money, take him to court. Next time, don’t get in such a hurry to build the job, wait until you have a clearly defined scope of work with the charges outlined in black & white.

You’re contract is either valid or it isn’t. Typically, it isn’t a matter of degree. Does your contract include verbage regarding the 3 day right of rescission? If not, the contract is void. Chalk it up to a lesson, get the Owner of the company to hire an attorney to create a real contract or find somewhere else to work. Or simply live with the outcome when these deals come up.

No matter what its a lesson for sure. We have a lawyer and he made the contracts so im guessing its just the owner not wanting to get a bad review and keep our 5 star ratings on everything.

It is what it is. Lesson learned for sure.

I guess i dont know the golden rules yet. Seems like im Gonna have to learn them the hard way.

Thanks man. What you said may suck but it does make since. Appreciate it

I recently had a customer refuse to pay for a roof installation. I talked to the insurance adjuster a explained the situation. Agent to me the customer had just called requesting a replacement check be sent since he “lost” his 1st one.

After some discussion with the agent about this guy, he put a hold on all checks and submitted a final check with the mortgage company, homeowner, and my company name!

Customer still sat on the check for 2 months. Finally, called me and complained that did not “trust” our warranty.

Compromise: I agreed to meet him at a bank when he got the check back from the mortgage company. And, once the check amount was received and cash provided, I would give him $500 to mitigate his concerns.

Deal went down. I kept MY word. Roofing is a dangerous career . . .

Making friends with the adjuster/insurance side can really be beneficial in the process.

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