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Who do your adjusters/agents write the checks out too for restoration work?

4K views 18 replies 8 participants last post by  Insuranceclaims 
#1 ·
I'm doing more and more insurance work and I did a commercial repair for a customer I've known personally for the past 15 years.

Was a small 3 ply job, off and on. Came out to around 1,800.

When the adjuster sent out the check, he made it out to the property owner, he deposits the check, all is fine. But when he pays me, he honestly did not have all 1,800. He's just got a poorly ran business and did not have a cent over 1,400.

So I just took the $400 hit, cause I know the guy personally, and I know his business has been on the decline recently because of a more saturated market.

This year he has another claim, on the opposite side, but it's larger.

About 5,200 in a 6sq, 3-ply. Involves some shoring up of rafters and such and a little interior work.

The amount minus deductible, minus depreciation, is about 3,400 and the recoverable depreciation is about 1,000.

So when the first check comes, he's $400 short again this time because of his phone bill. I know he really is just short though. He has money coming on the first, and says he can pay the $400 then.

But for the recoverable depreciation check, I'd like the adjuster to just mail it to me to save this hassle.

I've had adjusters just pay me, I've had them write the checks to the mortgage/title companies, most of the time they are to me or the home owner, and the home owner just signs off on the check.

Why so many different ways? And If I'm the one buying exactimate, writing them up the job to be done for said amount of dollars, why send the check to the property owner?
 
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#2 · (Edited)
It doesn't seem like so many different ways to me ??? You keep repeating the same, expecting different results ?? Seems like on these jobs you're saying please hose me.......everybody knows it but you !

Seems like you and your friend are quite a team and made for each other.

What does your contact say ? I just finished an insurance job for a friend at his parents house 16K in 3 draws from the bank. I didn't have a problem ? Were still friends, and better than ever since this job was completed. I've never had a problem with getting paid by an insurance co, bank, trust acct or otherwise.

A friend expects you to charge appropriately for your services and conduct your business affairs in a professional manner. This all about how you handle things - and nothing about anybody else. Fix your problems and the others problems will just evaporate....

Sorry to be so harsh but there doesn't seem to be too many other answers to your problem. I wish they were all this easy....
 
#6 ·
Honestly in 5 years of 350k in sales being the lowest, I've been shorted on 3 jobs, one for $600, and this guy twice now. To top that off, I start a large amount of my jobs with no money down.

$400 will not make me burn a bridge with a 15 year old acquaintance.

The question was, how to avoid the problem with him and avoid contractual disagreements and liens. NO I'm not a green contractor, there is a contract, and I could lean the property, but I'm trying to avoid putting a lien on a local business owner, and personal acquaintance's commercial building. He's embarrassed about it, why would he ever even consider referring me to one of his high end clientele friends if I take the hard line and put a lien on his building? I'd burn my bridge as a friend, and burn my bridge to his network of friends through his referrals.
 
#3 ·
The insured (property owners) is the one under contract with the insurance carrier. They cannot deviate payment in any way unless under strict direction to pay authorization signed by an authorized party of the insured. Even then, unless you are an approved repair contractor for said ins company the check will be written jointly between you and the insured. In this case, go to their bank and set the funds into an escrow account that requires both signatures for funds to be drafted in accordance to the contract draw schedule. Insofar as you example of the second roof....it appears you have a $5,200 project with an $800 deductible, $1000 in recoverables so the ACV check was $3400. Heres the deal, in order to collect the full 1000 in depreciation, you have to show the insurance company that the insured contracted to spend the entire $5200. If you tell them that you are doing the job for $4400 they will take the deductible off of that amount leaving $3600 minus the $3400 already paid which give you a whopping $200 to collect. Of course, there is the route of deceipt, fraud, and lying by faking an invoice to 'act' like you didn't cover his deductible amount. Do whichever you feel more comfortable with, but my suggestion is that if you are going to stick your toes in the insurance waters, you better know the ropes or they will get bit off. Your friend is a low man with no morals. His hard times does not give him an excuse to burn you for work you already performed. He made the decision to make your well being a low priority to him after he got what he needed done. Whether by accident or on purpose he still did it.....twice. Find some new friends.
 
#5 ·
Thanks for the info! The insurance adjuster said the exact same thing.

I had him sign a documentation, allowing me to negotiate terms with his insurance group, and also states checks are made to both parties.

Handy document to have around, and to have a customer sign prior to work being started.
 
#8 ·
I'm doing more and more insurance work and I did a commercial repair for a customer I've known personally for the past 15 years.

Was a small 3 ply job, off and on. Came out to around 1,800.

When the adjuster sent out the check, he made it out to the property owner, he deposits the check, all is fine. But when he pays me, he honestly did not have all 1,800. He's just got a poorly ran business and did not have a cent over 1,400.

So I just took the $400 hit, cause I know the guy personally, and I know his business has been on the decline recently because of a more saturated market.

This year he has another claim, on the opposite side, but it's larger.

About 5,200 in a 6sq, 3-ply. Involves some shoring up of rafters and such and a little interior work.

The amount minus deductible, minus depreciation, is about 3,400 and the recoverable depreciation is about 1,000.

So when the first check comes, he's $400 short again this time because of his phone bill. I know he really is just short though. He has money coming on the first, and says he can pay the $400 then.

But for the recoverable depreciation check, I'd like the adjuster to just mail it to me to save this hassle.

I've had adjusters just pay me, I've had them write the checks to the mortgage/title companies, most of the time they are to me or the home owner, and the home owner just signs off on the check.

Why so many different ways? And If I'm the one buying exactimate, writing them up the job to be done for said amount of dollars, why send the check to the property owner?
Your contract is with the person who hired you, not the insurance company.

Why is it your problem the guy runs his business poorly or had a phone bill to pay?

Did you have a written contract?

If so why not enforce it instead of letting him beat you out of money?

The reason he keeps doing it is you keep allowing him to do it.
 
#11 ·
I've noticed my name on insurance checks less and less since I started doing insurance work in 2006. However have noticed more and more mortgage companies on checks since 2006 which means the checks they cut have my name on them as well as the mortgage holder(s).

$400 short on a $20K roof is not a big deal. $800 short on a job under $10K is a big deal.

It sounds like your "friend" runs a lousy business to say the least. If your concerned with referrals from your "friend" consider what he may say to others. "Ya, I know a guy. He does good work and he'll even take less than what the insurance company pays".

As far as being shorted it's happened to all of us more than likely from time to time.
In the past 15 years and a few million in work.
$2,000 owed for a new roof that should have been $3,550. Contractor stuck the home owner with $50K in debt to subs.
$800 owed for a tear off that I subbed from an Amish kid who had no idea how to first roof second run a business. To top things off the home owner was a very shady character.
$330 owed for a new roof from a contractor who should have stuck with making cabinets. Same guy promissed my dad a 57 Chevy for landing him with his builder back in the 90's. Should have seen that one coming!!!
$5,000 owed on a $38,000 roof but going into it knew that there was a chance the $5,000 would never be payed. Still $33K for a 50sq tear off is good any day! It was a very strange deal... Home owner buys a house for $900K and gets a check for $67K from the previous owners insurance company. There was still $23K never paid on the claim of which $5K was for the roof. We shook hands at $33K.
Also see very few signed contracts perhaps one in five to seven jobs. All my lead are referrals which makes a huge difference.
The only incident in the past 7 years was the last one.

My brother who's also a roofing contractor got took for several thousands from a builder who went belly up.
My father who's done a lot of roofing work has been taken for only a few grand over 40 years.
 
#12 ·
Bwalley:

Same rules in TX. I don't use the word 'negotiate' and am quick to inform the adjuster that my role is simply to establish proper scope and price and don't care what's on page 45 of the insurance policy. I do a lot of ins work and have a rep for being a call it like it is guy. The only one's who get accused of acting like a public adjuster are the one's that 'act like public adjusters' and they deserve a hard time.
 
#13 ·
Bwalley:

Same rules in TX. I don't use the word 'negotiate' and am quick to inform the adjuster that my role is simply to establish proper scope and price and don't care what's on page 45 of the insurance policy. I do a lot of ins work and have a rep for being a call it like it is guy. The only one's who get accused of acting like a public adjuster are the one's that 'act like public adjusters' and they deserve a hard time.
You can call it whatever you want to, but when you start talking price to an insurance company on behalf of their insured, you are adjusting the claim.

The way to do it is submit your proposal to the client and let them discuss the price with the adjuster.
 
#16 ·
I think the laws read very similar as TX used Florida as a guide when the PA's lobbied for the law. The got tired of contractors doing their job for free. We were taking business away from them. They attempted to enforce it when it first came out a few years back, but you don't even hear about it now except for jackass companies that give adjusters a hard time and really do act like PA's. I held a PA license in OK a few years back so I know the drill. You are right in regards to being one or the other. The law states that if you negotiate the claim you cannot be directly or indirectly involved in the work....of course to 'negotiate' the claim, you have to be a licensed PA. We just don't have a problem with it anymore. Another thing in Texas that came in like a lion and has exited like a lamb.
 
#17 ·
Good morning, J-Peffer:

I can expand later, but I just wanted to make a brief comment.

If you are going to be doing more and more insurance work, it sounds like you really need to talk with someone who does this full time. I have been on the restoration/adjuster side for the last 16 years, throughout the country.

It doesn't matter what type of contractor you are. The insurance world is a whole different ball game, and it is changing daily. This is the biggest mistake that "regular" contractors make. It is very easy to get lost in the insurance world, you don't know the rules of the game.

As for other postings here, I agree with buildpinnacle. On the other hand, I understand what bwalley is saying. Their postings reinforce my comments that is in your best interest to speak with someone, who does this on a full time basis. Otherwise, you will experience more headaches that you want.

...got to go now.
 
#19 ·
bwalley:

I have been in Florida, since 2004, and have worked both the restoration and adjuster sides of the fence.

While I understand your comments, I am quite familiar with your interpretations. Restoration contractors have been adjusting/negotiating/settlling insurance claims forever and will continue to do so throughout the country. The problem is when "regular contractors", those who don't do insurance work on a regular basis, get involved with insurance work and don't understand the rules of the game.

During a speaking engagement at the Capital, I spoke on how to expedite the claims process between "regular contractors" and the carrier. This is a topic that I continue to pursue with the Legislature.

If you are operating exactly as your postings, it sounds like you are giving a lot of work away..........not sure.........just what it sounds like. Would you like some clarification?
 
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