The extension to 7 days to rescind the agreement is helpful. I would also add some language regarding the timely reporting of claims, ideally a specific time period, if the assignee has been given the directive by the insured to report the claim. Too often the PA or attorney waits 3 weeks to report claim.
Waiting seven days only hurts the homeowner . They will still be responsible to pay for all the work done before they cancel . Insurance companies will then have incentive to get the customer to cancel contract so they can send in their preferred vendors who will do only what insurance Company approves . This will anger the restoration contractor and you can expect a bill for the work that was done to reflect cost of losing job due to contractual interference. In most cases we spend a lot of money to attract that customer . So…….more lawyers!
Good luck. They always preserve enough of the evil to make it ever so easy to duck around it. These spineless poltroons, I mean legislators, won’t face the issue head on and ban what is an essentially corrupt practice. They’re dancing around the perimeter of the issue. All that is required for the triumph of evil is for good men to do nothing.
If attorneys and legislators were just seeking to look out for their own, they would all support anti-AOB Legislation. Why? Because restoration contractors will still do the work-we would just sue the homeowner for payment and the homeowners will sue the insurance company, who will then pay two layers fees when they lose.doubleing down on lawyers fees! Bad idea.
Is it too much to ask our legislators (who are mostly attorneys) to act for the benefit of their constituents and fix the problem, or will they continue to protect their fellow attorneys?
Ridiculous comments. the thing about these cases is, the insurer is only on the hook for fees WHEN THEY LOSE BECAUSE THEY UNDERPAID. They can even make the contractor pay their attorney fees by using an offer of judgment. And if there is fraud involved, there are ways to deal with that too. The point of the attorneys fees is just to make sure they are negotiating with the consumer as a middleman, instead of someone who knows the market and isn’t in a bind. When did insurance companies become saints? And if the mortgagee or another insured has a problem with an AOB, they have ways to undo it; letting the insurance company do it even when no one objects is ridiculous. Good luck getting your mortgage company to sign the AOB at 4 am when you’re standing in three feet of water and don’t have the cash or credit to pay up front for immediate repairs.
By the way, if the further damage occurs because you didn’t get the pipe patched or get water cleaned out, congratulations! The extra damage won’t be covered.
I cringe when I see that insurance companies aren’t being told about a loss for weeks or months after it occurs. But the answer is not to give the insurance industry back its license to steal whenever attorney fees would be more than the underpayment.
The problem is rampant is S FLorida, there are cars and trucks driving around with wraps on them that say “Want a new kitchen or Bathroom – call us we will handle the insurance paperwork for you”. Then there are the Water extraction companies and other companies that offer to give you $1000 (which I am sure the IRS would like to know about) if you refer someone to them for water damage. It is a crisis !! we have heard of cases where it has cost the insurance companies, $50,000 in legal fees for a few dollars difference; if the insured would have just contacted the company about a supplemental payment, this may have been taken care of much quicker. The consumer might get the couple dollars difference, but the attorneys are the ones licking their chops and circling like sharks.There need to be something done and I hope the legislature gets it done soon !!
Maybe the legislature can look back at how a similar situation was handled on the auto insurance side. There used to be the “ambulance chaser” attorneys that would show up at an accident scene and try to get you to sign with them while you were still in shock and may not have known what you were doing. Now these ambulance chasers have just switched to chasing Water extraction companies and plumbers. They show up at 4:00 in the morning when you are ankle deep in water and say just sign here and we will handle it….and most companies have preferred vendors or contractors that they would send out at 4:00 in the morning and you don’t have to pay them on the spot or have an AOB signed! I like the 7 day rule but agree that there should be something regarding the timely reporting of claims. There are times when contractors will come in and rip everything out before the company has even had a chance to send someone out to look at the damage to determine if it is a covered loss or not. (NOT everything is covered by your insurance policy – there are limitations and exclusions)
The Legislature must realize, that without legislative action, the proliferation of AOB’s, and their associated artificially inflated costs to carriers will continue to harm every homeowner of Florida, with above average premium rate increases, while benefiting only, the relatively few contractors and plaintiff attorneys, who are profiting, at what is ultimately, our citizens expense. I hope Frank Artiles and Joe Gruters are reading this.
Restoration companies will still do the work. If they are not paid they will sue the homeowner, who will then sue the insurance company and the cost to the consumer and the insurance company will rise. It won’t cost the restoration contractors because they will raise prices to reflect the additional risk.
Does anyone understand that the reason restoration companies win at mediation and in court because they are right. With all the resources to hire the best attorneys and insurance companies are defeated in almost every case.Restoration companies still have to prove their case, And they do. The idea that ins companies are intimidated by restoration contractors is not true.The adjusters citizens uses write estimates that are 20 – 50% of the actual fair and reasonable price. Is that fraud or incompetence or both. I find it appalling that certain republicans are so willing to sacrifice the consumers rights on the altar of the insurance companies. If you are trying to help the consumer you should look into how many people are lowballed on their claim and then try to fix their homes, believing the insurance companies estimate. I have the FACTS to back up everything I am stating. If you truly are concerned about the homeowner – 1. Stop allowing restoration companies to act as contractors, the restoration business is about the only industry in Florida that goes into people’s homes in a crisis , tears out walls and floors , and basically do contractors work with no license or regulation whatsoever. All restoration companies should hold a contractors license. If I want a haircut or a massage the person or companies need to be licensed, but not restoration companies. There are very good solutions to protect the homeowner that does not involve taking away their rights. Think about it!
Solutions to aob for citizens. – properly train all adjusters to write fair and reasonable estimates and not be in fear of losing their jobs due to claims severity. Adjusters are not and never will be construction professionals, however, they should be trained on how to handle contractors without creating an adversarial position. Keep in mind the adjuster has no obligation to be fair or reasonable to the customer. They do have an obligation to do what is best for the Insurance company they work for . Get a team of experienced contractors to review estimates and teach adjusters how to deal effectively with restoration contractors.
– hire experienced contractors to work directly for citizens regarding the ” bad guys”.
– stop losing at mediation by being totally unprepared to challenge the restoration contractors with facts. Just for starters!
The extension to 7 days to rescind the agreement is helpful. I would also add some language regarding the timely reporting of claims, ideally a specific time period, if the assignee has been given the directive by the insured to report the claim. Too often the PA or attorney waits 3 weeks to report claim.
Waiting seven days only hurts the homeowner . They will still be responsible to pay for all the work done before they cancel . Insurance companies will then have incentive to get the customer to cancel contract so they can send in their preferred vendors who will do only what insurance Company approves . This will anger the restoration contractor and you can expect a bill for the work that was done to reflect cost of losing job due to contractual interference. In most cases we spend a lot of money to attract that customer . So…….more lawyers!
Good luck. They always preserve enough of the evil to make it ever so easy to duck around it. These spineless poltroons, I mean legislators, won’t face the issue head on and ban what is an essentially corrupt practice. They’re dancing around the perimeter of the issue. All that is required for the triumph of evil is for good men to do nothing.
If attorneys and legislators were just seeking to look out for their own, they would all support anti-AOB Legislation. Why? Because restoration contractors will still do the work-we would just sue the homeowner for payment and the homeowners will sue the insurance company, who will then pay two layers fees when they lose.doubleing down on lawyers fees! Bad idea.
Is it too much to ask our legislators (who are mostly attorneys) to act for the benefit of their constituents and fix the problem, or will they continue to protect their fellow attorneys?
Ridiculous comments. the thing about these cases is, the insurer is only on the hook for fees WHEN THEY LOSE BECAUSE THEY UNDERPAID. They can even make the contractor pay their attorney fees by using an offer of judgment. And if there is fraud involved, there are ways to deal with that too. The point of the attorneys fees is just to make sure they are negotiating with the consumer as a middleman, instead of someone who knows the market and isn’t in a bind. When did insurance companies become saints? And if the mortgagee or another insured has a problem with an AOB, they have ways to undo it; letting the insurance company do it even when no one objects is ridiculous. Good luck getting your mortgage company to sign the AOB at 4 am when you’re standing in three feet of water and don’t have the cash or credit to pay up front for immediate repairs.
By the way, if the further damage occurs because you didn’t get the pipe patched or get water cleaned out, congratulations! The extra damage won’t be covered.
I cringe when I see that insurance companies aren’t being told about a loss for weeks or months after it occurs. But the answer is not to give the insurance industry back its license to steal whenever attorney fees would be more than the underpayment.
The problem is rampant is S FLorida, there are cars and trucks driving around with wraps on them that say “Want a new kitchen or Bathroom – call us we will handle the insurance paperwork for you”. Then there are the Water extraction companies and other companies that offer to give you $1000 (which I am sure the IRS would like to know about) if you refer someone to them for water damage. It is a crisis !! we have heard of cases where it has cost the insurance companies, $50,000 in legal fees for a few dollars difference; if the insured would have just contacted the company about a supplemental payment, this may have been taken care of much quicker. The consumer might get the couple dollars difference, but the attorneys are the ones licking their chops and circling like sharks.There need to be something done and I hope the legislature gets it done soon !!
Maybe the legislature can look back at how a similar situation was handled on the auto insurance side. There used to be the “ambulance chaser” attorneys that would show up at an accident scene and try to get you to sign with them while you were still in shock and may not have known what you were doing. Now these ambulance chasers have just switched to chasing Water extraction companies and plumbers. They show up at 4:00 in the morning when you are ankle deep in water and say just sign here and we will handle it….and most companies have preferred vendors or contractors that they would send out at 4:00 in the morning and you don’t have to pay them on the spot or have an AOB signed! I like the 7 day rule but agree that there should be something regarding the timely reporting of claims. There are times when contractors will come in and rip everything out before the company has even had a chance to send someone out to look at the damage to determine if it is a covered loss or not. (NOT everything is covered by your insurance policy – there are limitations and exclusions)
The Legislature must realize, that without legislative action, the proliferation of AOB’s, and their associated artificially inflated costs to carriers will continue to harm every homeowner of Florida, with above average premium rate increases, while benefiting only, the relatively few contractors and plaintiff attorneys, who are profiting, at what is ultimately, our citizens expense. I hope Frank Artiles and Joe Gruters are reading this.
Restoration companies will still do the work. If they are not paid they will sue the homeowner, who will then sue the insurance company and the cost to the consumer and the insurance company will rise. It won’t cost the restoration contractors because they will raise prices to reflect the additional risk.
Does anyone understand that the reason restoration companies win at mediation and in court because they are right. With all the resources to hire the best attorneys and insurance companies are defeated in almost every case.Restoration companies still have to prove their case, And they do. The idea that ins companies are intimidated by restoration contractors is not true.The adjusters citizens uses write estimates that are 20 – 50% of the actual fair and reasonable price. Is that fraud or incompetence or both. I find it appalling that certain republicans are so willing to sacrifice the consumers rights on the altar of the insurance companies. If you are trying to help the consumer you should look into how many people are lowballed on their claim and then try to fix their homes, believing the insurance companies estimate. I have the FACTS to back up everything I am stating. If you truly are concerned about the homeowner – 1. Stop allowing restoration companies to act as contractors, the restoration business is about the only industry in Florida that goes into people’s homes in a crisis , tears out walls and floors , and basically do contractors work with no license or regulation whatsoever. All restoration companies should hold a contractors license. If I want a haircut or a massage the person or companies need to be licensed, but not restoration companies. There are very good solutions to protect the homeowner that does not involve taking away their rights. Think about it!
Solutions to aob for citizens. – properly train all adjusters to write fair and reasonable estimates and not be in fear of losing their jobs due to claims severity. Adjusters are not and never will be construction professionals, however, they should be trained on how to handle contractors without creating an adversarial position. Keep in mind the adjuster has no obligation to be fair or reasonable to the customer. They do have an obligation to do what is best for the Insurance company they work for . Get a team of experienced contractors to review estimates and teach adjusters how to deal effectively with restoration contractors.
– hire experienced contractors to work directly for citizens regarding the ” bad guys”.
– stop losing at mediation by being totally unprepared to challenge the restoration contractors with facts. Just for starters!