Frustrated with adjusters not willing to do their jobs and telling my customers to go get more bids even after knowing the customers are under contract.
The following is our first step in handling this issue.
What do you think about this tactic being used by insurance adjusters.
LAW FIRM, P.C.
ATTORNEYS AND COUNSELORS
January 26, 2011
SENT VIA FACSIMILE TO (888)
AND U.S. FIRST CLASS MAIL
RE: Tortious Interference with an Existing Contract by and between ****** General Contracting, LLC and *********** and Notice of Violation of TEXAS ADMINISTRATIVE CODE, Section 5.9970
INSURED: ***********
CLAIM NO.: *********
Gentlemen:
Please be advised that this firm and the undersigned are general counsel for ***************** The purpose of this correspondence is to place you on formal notice that you have interfered with an existing contract entered into by and between ****** and your insured, ******** and are further in violation of TEXAS ADMINISTRATIVE CODE, Section 5.9970. From this point forward, direct all future communications regarding the issues raised in this correspondence to the undersigned, as opposed to ****** directly.
On November 9, 2010, the ****** entered into a written contract with ****** for restoration services (the “Contractâ€Â
Personally I haven’t had this happen “yet”.I have had the HO’s say this about the adjuster but when confronted with the adjuster (present) the HO become extremely confused and embarassed.
Well done Ray!!! Please keep us informed of your progress, this could impact us all. I’ve had this happen a number of times, either from the field adjuster or from a desk adjuster after receiving our supplement. These guys too often operate as if they are above the law.
[quote=“ALLTEX Roofing”]The following is our first step in handling this issue.
Good letter and should do the trick.
The point at which a TI event usually occurs is after the ins adjuster learns that the contractors price is substantially higher than the adjusters estimate. If properly informed, insureds will reject adjusters attempt. In 99.9% of cases, when an adjuster is reminded that he/she can be held personally liable for a TI event (if adjuster even knows what that means) the problem will solve it self. That rare insured who may consider following the adjusters TI recommendation may need to be gently reminded that acting on the recommendation would be construed as both a material and anticipatory breach that entitles the injured party (the contractor) to sue for damages.
have come up against this a number of times over the years but have never lost one when following the above.
January 26, 2011
SENT VIA FACSIMILE TO (888)
AND U.S. FIRST CLASS MAIL
RE: Tortious Interference with an Existing Contract by and between ****** General Contracting, LLC and *********** and Notice of Violation of TEXAS ADMINISTRATIVE CODE, Section 5.9970
INSURED: ***********
CLAIM NO.: *********
Gentlemen:
Please be advised that this firm and the undersigned are general counsel for ***************** The purpose of this correspondence is to place you on formal notice that you have interfered with an existing contract entered into by and between ****** and your insured, ******** and are further in violation of TEXAS ADMINISTRATIVE CODE, Section 5.9970. From this point forward, direct all future communications regarding the issues raised in this correspondence to the undersigned, as opposed to ****** directly.
On November 9, 2010, the ****** entered into a written contract with ****** for restoration services (the “Contractâ€Â[/quote]
ALLTex Roofing wrote: The following is our first step in handling this issue.
Good letter and should do the trick.
The point at which a TI event usually occurs is after the ins adjuster learns that the contractors price is substantially higher than the adjusters estimate. If properly informed, insureds will reject adjusters attempt. In 99.9% of cases, when an adjuster is reminded that he/she can be held personally liable for a TI event (if adjuster even knows what that means) the problem will solve it self. That rare insured who may consider following the adjusters TI recommendation may need to be gently reminded that acting on the recommendation would be construed as both a material and anticipatory breach that entitles the injured party (the contractor) to sue for damages.
Have come up against this a number of times over the years but have never lost one when following the above.
ALLTex Roofing wrote: The following is our first step in handling this issue.
Good letter and should do the trick.
The point at which a TI event usually occurs is after the ins adjuster learns that the contractors price is substantially higher than the adjusters estimate. If properly informed, insureds will reject adjusters attempt. In 99.9% of cases, when an adjuster is reminded that he/she can be held personally liable for a TI event (if adjuster even knows what that means) the problem will solve it self. That rare insured who may consider following the adjusters TI recommendation may need to be gently reminded that acting on the recommendation would be construed as both a material and anticipatory breach that entitles the injured party (the contractor) to sue for damages.
Have come up against this a number of times over the years but have never lost one when following the above.
Guys you would not believe the ignorance and arrogance of this particular adjuster. I would be glad to share my estimate and photo documentation that i used to justify my estimate. By the way this adjuster was informed of the state laws and that the customers were under contract when I sent in for supplement.
Guys you would not believe the ignorance and arrogance of this particular adjuster. I would be glad to share my estimate and photo documentation that i used to justify my estimate. By the way this adjuster was informed of the state laws and that the customers were under contract when I sent in for supplement.[/quote]
I’ve had the same issues.Luckly I’m well know here in town and the majority of roofs i get.But it is a hassel.They just want to get the cheapest price possible.Like they dont make enough money as it is.I’ve had homeowners to tell me what the insurance company has told them they need 3 estimates.There reply was that they wanted me to do the job not someone else.Or they have told me they called others and they never came out to give an estimate.But they never called anyone.The insurance company dosen’t know who they call.
They recommend the home owner to get three estimates. Its not required for the claim.
Some home owners use that as a way to get out of their contract with you.
Yep…So true.The last few years I have started just giving Estimates.I also stated on the Estimate that this is not a Binding Contract.I got a call from the Dollar store here about a new EPDM Roof.Went and meet the guy gave him a rough verbal estimate.He said it sounds good go ahead and start.Drop the paper work off anytime.I ordered all the materials Got to the job to start and noticed a few fresh repairs.I called in and asked about it.He was like Yeah we decided to go ahead and repair it till summer then let you do it.I;m pissed by the way.I told the guy i was putting in the material order.I basically got hung out to dry on a 75 sq 60 mm full glue down.Luckly I order enough material at my local lumber yard and was able to send it back with no re stock fee.Will i be bidding on the job again Hell No…Find the guy that did the repairs and have him do it.
When the adjuster wants to recommend the homeowner to a new contractor, then i’s time for the contractor to recommend the homeowner to a new insurance company. On top of that the homeowner also needs to tell their agent they are unhappy with the service they received and they want a refund of premium. I mean afterall they have paid for years only to find out the insurance company doesn’t want to pay fair market value for repairs. personnaly I would be requesting my premiums returned in full plus interest.
The other thing I absolutley hate that the insurane companies do is they have the policy holder get a “free estimate” from a contractor before they send out an adjuster. They want to use our free service to try and save themselves money. Then they argue and fight when we submit our estimates.
They recommend the home owner to get three estimates. Its not required for the claim.
Some home owners use that as a way to get out of their contract with you.
Yep…So true.The last few years I have started just giving Estimates.I also stated on the Estimate that this is not a Binding Contract.I got a call from the Dollar store here about a new EPDM Roof.Went and meet the guy gave him a rough verbal estimate.He said it sounds good go ahead and start.Drop the paper work off anytime.I ordered all the materials Got to the job to start and noticed a few fresh repairs.I called in and asked about it.He was like Yeah we decided to go ahead and repair it till summer then let you do it.I;m pissed by the way.I told the guy i was putting in the material order.I basically got hung out to dry on a 75 sq 60 mm full glue down.Luckly I order enough material at my local lumber yard and was able to send it back with no re stock fee.Will i be bidding on the job again Hell No…Find the guy that did the repairs and have him do it.
So you decided to essentially start the job without a signed contract in hand? And since the guy decided to delay the job, causing you to have to return the material, you’re mad and won’t consider doing the job when the Customer is ready? Well there you go, that’s sure showing him. Will he ever be sorry.
When the adjuster wants to recommend the homeowner to a new contractor, then i’s time for the contractor to recommend the homeowner to a new insurance company.
[/quote]
I’m curious, how has that worked out for you? I mean, how many times have you done that where the Customer immediately went out and got a new insurance provider? And how did that help you get compensated for your efforts?
There are ways to react to the Adjuster instructing the Homeowner to get more bids. In my humble opinion, telling the Homeowner to get a different insurance company probably isn’t one of them. Before doing this again, you may want to check with your attorney to see what kind of liability you may be exposing you and your company to with this type of practice.
In this situation the adjuster does not know how to properly estimate for a job that presents some difficulties. After the adjuster recieved a copy of state law, our contract and our complete estimate. He then advised my customer to go get more bids. This is called tortious interference (Tortious interference, also it is known as Intentional interference with contractual relations, in the common law of tort, occurs when a person intentionally damages the plaintiff’s contractual or other business relationships. This tort is broadly divided into two categories, one specific to contractual relationships (irrespective of whether they involve business), and the other specific to business relationships or activities (irrespective of whether they involve a contract).
He didnt want to do his job and he does not care if the homeowner is put back whole after a loss.
This is just wrong. We all need to call them on their bullshit…
So you decided to essentially start the job without a signed contract in hand? And since the guy decided to delay the job, causing you to have to return the material, you’re mad and won’t consider doing the job when the Customer is ready? Well there you go, that’s sure showing him. Will he ever be sorry.
Well theres a bit more to it.After i got the measurements.He came by my house to talk to me.We went through the price.He agreed.He told me to go ahead and order the material the job was mine.He set a start date.He told me to just bring the contract on the start date and He would sign it.No Problems.I wouldn’t just do that for any random person.Would I do it again NO…If he had called or told me something in person I would have a diffrent out look.I know the guy personally but we are not friends.He will call back so if i concider doing the job for him it wont be the same estimate.It’s gonna cost him.I was mad but not angry.He put me in a bind.
Fingerbanger, I guess I take things to literally at times. Understand your situation there but I tell you, I wouldn’t start my Grandmother’s roof without a contract. A well written contract doesn’t just bind the agreement you have with the Customer but also could affect other critical aspects that could potentially come up.
I wish we still lived in a society and culture where a handshake is an adequate way to do business.
