Insurance

If the insured/ homeowner wants to use a certain roofing company (my self) but the insurance company is saying that they must use their preferred contractor to do the work in order to file the claim. Is this actually true seems fishy that the homeowner cant chose who they want on their roof.

What insurance company is it?

Using a preferred contractor saves the insurance company money because, by contract the contractor has to buy the supplies from X store which the insurance company gets a discount.

Also, mandating a certain contractor would make a insurance company an GC and they aren’t in the business of being a GC.

The Ins. Cos. would not want to pay to have an insured, tax paying contractor around. They know the deal and their hands are clean.

It is 1099 all the way BABY!!!

An insurance company CANNOT dictate who a homeowner selects to do the work.This can in no way be a prerequisite to the homeowners right to file a claim for damages that are covered in their policy.

Insurance companies may try to steer a homeowner to a particular contractor because when you sign up to be a preferred contractor with an insurance company you automatically are agreeing to perform the work for a discount of 15% to 20% less than what the RCV cost would be based on an Xactimate or Integraclaim estimate.

Hey 828…I have a question for you can you shoot me an e-mail

Thanks,
Dave

roofpro1@hotmail.com

Insurance companies never pays you for all of damages done to your home, but they always have some security restrictions.

[quote=“roofrite”]An insurance company CANNOT dictate who a homeowner selects to do the work.This can in no way be a prerequisite to the homeowners right to file a claim for damages that are covered in their policy.

Insurance companies may try to steer a homeowner to a particular contractor because when you sign up to be a preferred contractor with an insurance company you automatically are agreeing to perform the work for a discount of 15% to 20% less than what the RCV cost would be based on an Xactimate or Integraclaim estimate.[/quote]

this ^

I try to never say never. I assume it is possible that if an insurance company wrote the policy in a certain manner, they could require someone use their contractors. I seriously doubt that but anything is possible.

I would guess it isn’t the insurance company itself stating that requirement regarding their preferred contractor. It is likely to be the Agent. I’ve seen that happen several times. Sometimes it can be an Adjuster sticking his nose in where it shouldn’t be.

I do remember one insurance company in particular, a smaller one, where there was a reasonably hard push to use their preferred contractor. It was quite the little scam from what I can tell. They paid this contractor extremely well to go out and do repairs in lieu of a full roof replacement. In return, this contractor went out, presenting themselves as a neutral third party, inspected the roof and then pitched the Homeowner on how the repairs were all that was needed.

The Homeowner got us involved and ultimately got a complete new roof. It was a bit humorous as the third party contractor had to meet with us for the reinspection. Let’s just say the other contractor didn’t hide his irritation very well. We presented them with a well prepared Xactimate with over 50 pictures of damage embedded in the image section of the Xactimate. We also made the contractor crawl all over the roof to see every single damaged shingle. Bottom line, the Homeowner got the new roof and was delighted.

Have your Homeowner read their policy rather thoroughly. Unless there is explicit language regarding the use of preferred contractor’s, they should simply push back on the insurance company.

They may try to not pay for everything, but that is why I meet the adjuster-to be sure they pay correctly according to the damage and policy.

I ask for everything possible, all they can do is say no. And if I get more money, that is good for me AND the homeowner.

Last week, I got almost $500 to reset a “through the roof electric post” on a comp over wood shingle roof. I didnt ask for that much, just asked them to pay for it. We subbed it to a licensed electrician who charged $200. That also was a third trade, so I then asked for O&P…and got it. We made an extra
$4200 on the job.