State Farm not paying O&P

We have a project that we are going to start next week that includes complete reroof, shutters, about 60ft of fascia metal, 20ft of guttering and an AC combing. State Farm is not paying overhead & profit because we are only doing some of the fascia & gutters and not the whole house.

I have never had this come up before, its always been paid if we have 3 or more trades. Whats their deal?
They then went on to say that we could fight for it, but then they will require the homeowner to get three bids and State Farm will pick who gets to do the work. We already have a signed contract that we picked up 2 weeks ago. We chose not to fight that battle. BUT WHATS THE DEAL WITH THESE GUYS?!

Why would you be interested in O&P? 8)

Not unusual when the 3 trades are exterior. No interior damages? Is this a CAT claim or a local staff adjuster?

Put together a brief little document that states something to the effect the HO has signed a contract with your company to serve as General Contractor to perform repairs for all trades and requests that O&P of 10/10 be added as is appropriate within the terms of their policy. Have them sign and date it, send it in with your estimate that would include O&P.

Look at the HO’s policy. Unless there is something new and revolutionary, there is nothing that requires the HO to (1) Get 3 estimates; or (2) Accept SF’s choice of contractors. The next time an Adjuster tries pulling that crap, ask him in front of the HO if that means SF is underwriting and guaranteeing the quality and reliability of the repairs. If so, perhaps it wouldn’t be a bad deal to accept their contractor, it relieves the HO of all stress and concern. The reality is, pretty much every scope of loss I’ve seen states clearly the choice of contractors is up to the HO and the insurance company makes no warranties related to that choice.

Aside from that, stay persistent and professional. In these cases, the HO is your best asset in achieving what you want.

AD, that was a much better reply than mine. :smiley:

But, I still think somebody had to interject a taste of humor here. :lol:

Better listen to AD! He knows his stuff.

[quote=“Walt5150”]We have a project that we are going to start next week that includes complete reroof, shutters, about 60ft of fascia metal, 20ft of guttering and an AC combing. State Farm is not paying overhead & profit because we are only doing some of the fascia & gutters and not the whole house.

I have never had this come up before, its always been paid if we have 3 or more trades. Whats their deal?
They then went on to say that we could fight for it, but then they will require the homeowner to get three bids and State Farm will pick who gets to do the work. We already have a signed contract that we picked up 2 weeks ago. We chose not to fight that battle. BUT WHATS THE DEAL WITH THESE GUYS?![/quote]

Best bet is the homeowner to be the squeaky wheel. One question regarding the contract that you picked up. Did you write an actual estimate or did you have a contract that states “insurance proceeds” or something similar?

[quote=“jtdew”]

[quote=“Walt5150”]We have a project that we are going to start next week that includes complete reroof, shutters, about 60ft of fascia metal, 20ft of guttering and an AC combing. State Farm is not paying overhead & profit because we are only doing some of the fascia & gutters and not the whole house.

I have never had this come up before, its always been paid if we have 3 or more trades. Whats their deal?
They then went on to say that we could fight for it, but then they will require the homeowner to get three bids and State Farm will pick who gets to do the work. We already have a signed contract that we picked up 2 weeks ago. We chose not to fight that battle. BUT WHATS THE DEAL WITH THESE GUYS?![/quote]

Best bet is the homeowner to be the squeaky wheel. One question regarding the contract that you picked up. Did you write an actual estimate or did you have a contract that states “insurance proceeds” or something similar?[/quote]

Perhaps you could explain WTF the difference is? The O&P isn’t being paid because of the contractor, the O&P is being paid to the HO because of their policy. Keep in mind, he said State Farm. 99.99% we go to an Adjuster Meeting with our estimate in hand. 70% plus of the time, the SF Adjusters completely ignore it. So you tell me, why is that question germane to this conversation and how do you think it would have made a difference? We’ve had multiple SF CAT Adjusters tell us they aren’t authorized to give O&P period, no exceptions. Yet we’ve had other SF CAT Adjusters in the exact same neighborhood who were independents working on contract give us O&P within a week or two of other guys saying they absolutely could not do it. So you tell me, how can you possibly make sense of that? It’s either blatant incompetence or bald faced lies, or both.

http://www.youtube.com/watch?v=84DkwMA9FEs

[quote=“dstew66”]

http://www.youtube.com/watch?v=84DkwMA9FEs[/quote]

Now thats pretty funny!!!

Mark,
That is exactly why I am thinking of changing my contingency. Jtdew is not the only adjuster ive seen playing that “proceeds” game. I mean does the policy state we will only give you 55% of what we owe to repair or replace with materials that are kinda like what you had and inferior quality??? Hell no it doesn’t!!! Most of the adjusters are good people trying to keep their jobs… It’s some other bastard higher on the totem pole thats making these rules etc to shave money off of claims that is rightfully money that should be collected by a contractor to repair or replace the damaged goods with materials of like kind and quality.

Soapbox!!! sorry guys

[quote=“dstew66”]

http://www.youtube.com/watch?v=84DkwMA9FEs[/quote]

LMAO! Keen with there dstew, thanks for the laughs.

[quote=“Authentic_Dad”]
It’s either blatant incompetence or bald faced lies, or both.[/quote]

Both!

[quote=“Walt5150”]We have a project that we are going to start next week that includes complete reroof, shutters, about 60ft of fascia metal, 20ft of guttering and an AC combing. State Farm is not paying overhead & profit because we are only doing some of the fascia & gutters and not the whole house.

I have never had this come up before, its always been paid if we have 3 or more trades. Whats their deal?
They then went on to say that we could fight for it, but then they will require the homeowner to get three bids and State Farm will pick who gets to do the work. We already have a signed contract that we picked up 2 weeks ago. We chose not to fight that battle. BUT WHATS THE DEAL WITH THESE GUYS?![/quote]

60’ or 600’ - doesn’t matter, it’s still a separate trade. SF has no legit reason for the denial and can’t be interferring with your existing contract. Again, the insured’s premium covers O&P and therefore, they need to pay it even if only one trade.

PM me with the details and I’ll post them at ICCOA. Don’t need the customer name or your company name, just the name of the adjuster(s) (IA or staff) and the adjusters boss and some detail. These individual adjusters who keep playing these games need some personal and public “attention”. Maybe when enough of these wise guys are exposed, they’ll knock off the nonsense.

[quote=“LMB”]

[quote=“Walt5150”]We have a project that we are going to start next week that includes complete reroof, shutters, about 60ft of fascia metal, 20ft of guttering and an AC combing. State Farm is not paying overhead & profit because we are only doing some of the fascia & gutters and not the whole house.

I have never had this come up before, its always been paid if we have 3 or more trades. Whats their deal?
They then went on to say that we could fight for it, but then they will require the homeowner to get three bids and State Farm will pick who gets to do the work. We already have a signed contract that we picked up 2 weeks ago. We chose not to fight that battle. BUT WHATS THE DEAL WITH THESE GUYS?![/quote]

60’ or 600’ - doesn’t matter, it’s still a separate trade. SF has no legit reason for the denial and can’t be interferring with your existing contract. Again, the insured’s premium covers O&P and therefore, **they need to pay it even if only one trade. **

PM me with the details and I’ll post them at ICCOA. Don’t need the customer name or your company name, just the name of the adjuster(s) (IA or staff) and the adjusters boss and some detail. These individual adjusters who keep playing these games need some personal and public “attention”. Maybe when enough of these wise guys are exposed, they’ll knock off the nonsense.[/quote]

How do you argue this?

[quote=“Authentic_Dad”]Not unusual when the 3 trades are exterior. No interior damages? Is this a CAT claim or a local staff adjuster?

Put together a brief little document that states something to the effect the HO has signed a contract with your company to serve as General Contractor to perform repairs for all trades and requests that O&P of 10/10 be added as is appropriate within the terms of their policy. Have them sign and date it, send it in with your estimate that would include O&P.

Look at the HO’s policy. Unless there is something new and revolutionary, there is nothing that requires the HO to (1) Get 3 estimates; or (2) Accept SF’s choice of contractors. The next time an Adjuster tries pulling that crap, ask him in front of the HO if that means SF is underwriting and guaranteeing the quality and reliability of the repairs. If so, perhaps it wouldn’t be a bad deal to accept their contractor, it relieves the HO of all stress and concern. The reality is, pretty much every scope of loss I’ve seen states clearly the choice of contractors is up to the HO and the insurance company makes no warranties related to that choice.

Aside from that, stay persistent and professional. In these cases, the HO is your best asset in achieving what you want.[/quote]