I was contacted recently by a woman whose 1922 house recently had some damaged caused by a large tree falling onto a corner of the house. The tree crashed into the corner but did very little damage to the wall framing itself. She was already given an undisclosed amount of money (to me anyway) from her insurance company for the repairs. She has already received a few estimates from a few other contractors but was not really comfortable with them for her own private reasons and she didn’t think the insurance company awarded her enough money for the repairs based on the estimates she received. I’ve never done any insurance work before.
My question to the forum here is what have your experiences been with working with insurance companies?
Is it worth all the hassles I’m imagining it to be or should I turn and run?
Thanks
BjR
Replies
BjR,
i am currently doing a LOT of work in which insurance companies are involved( Hail Storm)
Your challenge is to make perfectly clear to the homeowner that YOUR price is YOUR price.
Remember at ALL times-- the insurance companies payout has NOTHING to do with YOUR price.
i can't stress that enough!
sell the job--based on YOU and YOUR reputation and methods
the insurance company will contact you--and want to know why YOUR price is higher than the one they are "allowed" to pay-------- that's not your problem--let the insurance company argue with the homeowner---you stay out of it.
the homeowner will contact you and want to know why your price is higher than what the insuarance company "allows"--that's not your problem either.
since you know these 2 phone calls are likely to occur----be prepared ahead of time when you sell the project------your tactic is to present yourself as so overwhelming qualified and perfect for the project---that eventually the homeowner decides YOU are the person for the job regaurdless of the insurance payout.
do NOT let the insurance company try to bog you down with endless requests for itemizations etc.--simply respond by pointing out that you have already supplied a written proposal detailing the scope of YOUR project and it's price--PERIOD.
there are only 2 possible outcomes----either the customer goes with you-or they go withsomeone else(probably cheaper)
your initial approach is to sell to the homeowner so that they go with you no matter what
however , if the homeowner is going to go with a less expensive alternative--- no amount of supplying the insurance company with documentation is going to affect that decision-----so you can actually spend pretty minimal time on all this
remember---at all times- YOUR price is YOUR price-------YOU are not responsible for subsidizing either the homeowner or the insurance company---and BOTH will try to have YOU pick up part of the cost---don't let them.
Best wishes,
Stephen
I've never done insurance work per se, but I have done many repairs that the homeowners filed insurance claims for. I just submit my proposal and they work it out with the insurance company themselves. Most of the time, they are reimbursed for my cost minus the deductible. I don't see it as part of my job to worry about how much the insurance company grants them.
I would turn down the job if I felt that the customer was going to a problem. If they share with me any issues they have with their insurance company, I might use that to help me determine if I'm dealing with a good customer, but I don't let it affect my proposal.
Everything Steven said is true. Insurance work is a moving target. If it is a one shot deal in an area they will not budge. If it is a large job they won't budge. If it is a small job (under $2500 or so) they will give and take some just to keep the client happy.
Insurance jobs pay to get the house back to as was condition. Homeowners want it back to as new condition. I now charge $50 just to do an estimate as we have found if you don't you will be quoting after a storm till your nose bleeds and get litttle if any work at all. DanT
I agree with everything that has already been said. You can spend a lot of time with the insurance adjuster and never get the job. I would only deal with the home owner.
Very god comments to all. I really appreciate it. I posted some pic's of the project in the construction techniques forum and posed a question there too.
Again, thanks for your thoughts. I'll more than likely put together a proposal for her.
BjR
Sounds like she has already settled with her ins. co. so you'll only have to deal with her.
If there wasn't enough of a pay out she may have to come up with some out of pocket coin.
You have to control the situation based on your business model. Don't let the insurance company control you with their business model.
"What's an Arkansas flush?......It's a small revolver and any five cards."
My big warning would involve losses that are large enough to involve the mortgage company in the process. With big losses, the insurance company pays the mortgage company, then the mortgage company doles out the draws as they see fit. They have to inspect from time to time, and there are always delays in scheduling the inspections, then mail time for the check to fly.
Another complication is that those checks are usually made payable to the insured / homeowner, and the contractor. Both parties have to endorse the check. If homeowner becomes unhappy with the insurance company for any reason, they can stiff or stall the contractor. They see it as their money, since their name is on the check.
Insurance work is usually reasonably fair, but it can get complicated on large losses.
Greg
She has all that her insurance company is going to give her. I'ts going to be about 18,000.00 to fix it and her insurance company only gave her 9000.00. Sounds like a pissing match to me.
BjR
My suggestion, Figure up the estimate as you normally would, present it to her, and let her handle the insurance company.
Your contract will be with the homeowner, not the insurance company.
I will speak with the adjusters from our customers insurance company if they have specific questions, other then that I try to avoid them.
Some companies are better then others.