I did a roofing job for a homeowner. It was insurance job. I work with the insurance to get the job. When we got done with the job. The homeowner told me that the insurance had to keep $1000 for sales tax’s. I have never heard of this before. He said that he would pay me $100 a mount until it was paid. He did give me the deductible. So this is not the deductible that I am talking about. What do you think.
Sounds like BS to me. I would call the owner out on it. Tell them you need to see the paper work. Tell them you will call the Carrier and get the money sent ASAP since any sales tax was already paid by you
Total BS. I am getting tired of dealing with insurance claim customers.I like working with people who need a stinkin roof and pay for it. Good luck.100 bucks a month is a joke.
The insurance company has no interest in keeping the sales tax. As a matter of fact they pay the sales tax on all of the material in the estimate. Ask to look at the insurance company estimate.
If the homeowner insist in paying in installments, then I would charge accordingly. I would let them know that there will be a $200.00 finance charge.
Chances are you will never see your money if your financing the “sales tax”.
Who is the insurance carrier?
I agree with outlaw that it is bs.
state f. I have done roofs for thim befor and never had any trouble. I know the homeowner just didn’t pay. But what can I do?
Sounds like recoverable deprecation they with held.
What do I think? I think you got handed a bunch of BS. We’ve worked a ton of claims and I’ve never seen anything like this. I always thought sales tax was paid on just that, a sale. An insurance claim is not a sale, it is a payment. The Homeowner doesn’t even pay income tax on an insurance claim so it doesn’t stand to reason they would be paying sales tax. The sales tax for materials is calculated into the claim and is a stated line item on the insurance statement of loss. It is paid by the entity purchasing materials for the job.
What do you do about it? I guess one choice is to accept the $100 monthly payment. The other is to call out the Homeowner on it, require them to produce the documents proving their allegation about the sales tax and threaten them with a lien and/or small claims suit unless they pay you. If you do much insurance work, I would presume you have some relationships with the Adjusters in that area and you could discreetly inquire with them to verify this could or could not possibly be true.
One thing we do is to always have the full statement of loss prior to starting a job. Were this sales tax story be true, it would have been called out in the statement of loss.
If your original contract is not honored, then it is in your best interest to begin Lien paperwork NOW.
Inform the customer that this is the action that will be taken… I’m betting things change in a heartbeat…
The sales tax isn’t on the statement of loss on State Farm claims. It is in the actual estimate in the same place as the other Xactimate versions.
Sales tax is not withheld by State Farm. Ask the homeowner for a copy of the estimate. State Farm always gives a copy of the estimate with initial payments and all RCV payments.
Thank you all.
Wow! That dude has some balls. Maybe tell him you havent paid his material bill, and have supplier send lien notice. Or tell him youll see him in small claims court.Good luck, I dont have the patience for bs like that.-Ray
On a SF insurance claim, you should make a profit that allows you to accept the $100 a month. On the other hand, did you get every line item that was damaged?
Does everyone take action against the insurers when you and the homeowners are cheated out of probably $1000 per claim on essentially every claim?
Is it right for the customer to work this money? Probably not, just on the story presented here. I do not know the extenuating circumstances of the customer or the actual quality etc. of the work done, though.
I am in synch with all the prior posts that the sales tax claim is BS, though - no way on that.
I have never seen such animosity generated to the lies told by the insurers here is my point. Who do you work for? If I stacked up the lies told by the insurers vs the homeowners’ lies, which pile do you think would reach to the sky with the other pile barely any?
Nevertheless, in the big picture, I would hope that we are here for the homeowners. Getting all wound up about it will certainly lose the customer, although that may be your goal, too. If the homeowner did not pay the $100 a month, then I might react, but probably not.