Only 40 Percent of Fla. Roofing Contractors Have Workers' Compensation Coverage
Southeast News • July 9, 2005
Rising costs of construction materials and more expensive workers' compensation insurance are causing roofing contractors to use more uninsured workers according to Department of Financial ...
Insurance Journal is not responsible for the content of the message below.
Subject: RE: Insurers' Unfair-Uncompetitive Trade Business Practices
Posted On: July 15, 2005, 10:10 am CDT
Posted By: Russell Hayes
Comment:
Every one makes good points, I'd like to point out one thing. The home owner! The home owner contributes to the low balling settlement practices of insurance companies.
I have direct experiance working in the Florida market, and the foremost thing on home owners minds was how much money they would have to pay out of pocket towards thier deductible. Being that Florida has a percentage system on Hurricane claims most peoples deductibles ended up very high.
An example: Typical $7000 roof claim with a 2% ded on a 250K home is $4,000!
Left with this, I'd beat up every roofing contractor for the lowest price possible to offset how much of that wopping $4000 I have to pay.
Now in a situation where a home owners deduct is along the lines of $250 to $500, many times the home owner would get about half of that $7000 minus the deductible.
So:
RCV = $7000
DEP = $3500
DED = $500
1st Payment = $3000 with an additional $3000 left if the work is completed.
The first thing a home owner is going to do is try and at least get the work completed for $6500 dollars thereby avoiding paying the deductible. Sometimes greed takes over and becuase they don't understand the DEP part of the claim they might be thinking that if they get the roofer to replace the roof for say, $5000 they not only will not have to pay the ded but when the Insurance sends that $3500 dep, they are going to have money left over.
But suprise comes when they turn in the receipts for the work and the claims adjuster finds out they had the work completed for $1500 dollars less he only sends what is needed to total the claim to $5000 dollars and there by saves the left over money. This is ok and this is right as it's cost replacement insurance.
The home owner and the contractor for that matter are cutting there own throats and enabling insurance companies justification to pay lower and lower amounts on claims.
Subject: RE: Insurers' Unfair-Uncompetitive Trade Business Practices
I have direct experiance working in the Florida market, and the foremost thing on home owners minds was how much money they would have to pay out of pocket towards thier deductible. Being that Florida has a percentage system on Hurricane claims most peoples deductibles ended up very high.
An example: Typical $7000 roof claim with a 2% ded on a 250K home is $4,000!
Left with this, I'd beat up every roofing contractor for the lowest price possible to offset how much of that wopping $4000 I have to pay.
Now in a situation where a home owners deduct is along the lines of $250 to $500, many times the home owner would get about half of that $7000 minus the deductible.
So:
RCV = $7000
DEP = $3500
DED = $500
1st Payment = $3000 with an additional $3000 left if the work is completed.
The first thing a home owner is going to do is try and at least get the work completed for $6500 dollars thereby avoiding paying the deductible. Sometimes greed takes over and becuase they don't understand the DEP part of the claim they might be thinking that if they get the roofer to replace the roof for say, $5000 they not only will not have to pay the ded but when the Insurance sends that $3500 dep, they are going to have money left over.
But suprise comes when they turn in the receipts for the work and the claims adjuster finds out they had the work completed for $1500 dollars less he only sends what is needed to total the claim to $5000 dollars and there by saves the left over money. This is ok and this is right as it's cost replacement insurance.
The home owner and the contractor for that matter are cutting there own throats and enabling insurance companies justification to pay lower and lower amounts on claims.