Posted On: May 17, 2006, 2:50 pm CDT

Posted By: Tony

Roger,
I think you are missing the point on RC vs. ACV. The insurance companies don't owe you a penny. They owe the insured (depending on policy) ACV or RC up front. It makes absolutely no difference if you use the term "synthetic replacement cost", "synthetic ACV" etc. The issue is what is owed up front. That is really quite simple, and depends solely and wholly on what the policy states will be paid (ACV vs. RC).

Do I think that 10% profit is too much, nope. Sure don't. I do have a problem w/ contractors griping about the amount paid when the ADDITIONAL 10% is for a GC for his efforts in scheduling, planning, ensuring proper and timely completion, etc. and the people griping they don't get it are acting solely as roofers. The afore mentioned 10% is for the GC, not a/the subs. The prices that most companies pay are adequate for the company to make a profit based on that alone. Now is there varying rates based on a cat situation, quite possibly. I suggest looking more at quantity of jobs as opposed to making a years worth of profit on one job. In short, while I can sympathize, it isn't my problem, it is the guy who is earning the 10%.

10% overhead costs is another amount paid. Whether I feel as if it is owed or not, is not my decision (which by the way, I do believe it is a fair and adequate amount), but the company I work for says pay it TO A GC, so it is owed. Simple as that.

You quote: "Cost Plus 10% estimation schedules. The rub is that the prices insurance companies pay is not cost, but there is a built in profit for the subs. So your quote should be: "Actual incurred cost, plus 10%". That would be much more accurate.

Your "builder valued roofing system" cracks me up. You are trying to compare apples to oranges and using poor terminology to do so. IF a GC hires a sub to roof a building in addition to other work (painting, drywall, electrical, flooring, etc) then the GC should be owed and paid O&P on all items including the roofing. IF a GC ACTS as a roofer and does no other work or a minimal amount (paint a ceiling, etc) O&P should NOT be owed or paid. O&P is not built in additional profit for a GC, just because he is a GC. It is for the work a GC does in supervising the reconstruction process, especially if the GC has no or minimal staff to actually do the work and has to use a myriad of subs.

Why do I think your commentary is about you? Good point. I'll give you that one. I think you are echoing the sentiments and trying to justify opinions of various contractors you know including yourself. I have dealt w/ contractors who purport opinions like yours and most of the time when they realize they aren't going to pull the wool over someones eyes, they back off. I will give you credit for persistence. The rub lies in that your arguments are specious (look it up)at best and have no basis other than what you perceive as the insurance companies bias against you/yours/etc.

You put out blanket statements about AllState, State Farm, Traveler's etc without crediting these companies for the quality employees that they have. An average of 1-2% of people will be difficult to work with in any given claims situation. This statistic has been around for years and has been verified by different companies. I wonder what percentage of people you have mislead or even just talked to, are difficult to work with. BTW, I am NOT talking about trying to cheat someone, or pay less than what is owed, etc. I simply mean common courtesy, decency and understanding that these adjusters are doing the VERY best they can and working with them instead of berating them, chastising them or trying to bully them.

Last, you are really tiresome. Your rants and diatribes do not take into account any points of view other than your own, with no room for any type of informational sharing. You think you are owed more than you got/get and want more. That is why I think your commmentary is about yourself and not the industry as a whole. I try to give honest forthright opinions/facts (when I have them) to explain the claim process (with my company anyway) so people who come here may gain some insight into the procedure. You want to argue over nickels when there are $100 bills laying on the table? Go for it, but don't be surprised when an adjuster who has heard BS like yours before, stands up and does what is right, even though it may not be expedient for him, the customer or you.

Like mama said, "You can catch more flies w/ honey than with vinegar". Moral: Treat adjusters right (courteous, honest, fair and if there is a problem treat it like a mistake, which it probably was, not an attempt to defraud someone) and they will work with you. Don't and do not be surprised when you and your customer get an appt next month at the earliest.