These last couple weeks, I’ve noticed a subtle theme in some of the people I’m speaking with. It has been bothering me enough, and putting these people in bad enough positions, that I’ve decided to write about it in the hopes that others will learn a better way.
What I noticed is that some potential clients have decided that they know best, and that they are smarter than everyone else who have experienced an insurance loss. This very same theme is why Home Depot is a multi-billion dollar company and TurboTax is a household name: there are a lot of things that you can truly do yourself and potentially save money.
But there is a difference between using a CPA vs taxes-in-a-box.
This phenomenon is not new. There have always been those who look for a cheaper way to do things, or shortcuts to their goals. My dad would complain all the time about people who would call his shop for advice.
Dad ran an electrical shop for twenty years. There wouldn’t be a week that would go by without someone calling to pick his brain. There is some of this that is expected. In order to know whether your services are needed, you have to ask questions and educate your potential client on the process of what it is that you do. If someone describes their problem, and you have a solution, then a deal can be struck they can hire you to help solve their problem.
The problem that my dad complained about, and the trend I’ve seen lately, are those people who would call him in the hopes that he could help them solve their problem without actually hiring him. I overheard several of these conversations over the years, and they generally went something like this:
“Hi there, I’m SoAndSo. I’m running some wire to my new stove.” (Red Flag #1: Non-electrician running wiring)
“Hi Mr. SoAndSo,” my dad would say, “What can I do for you?”
“Well I’ve got a GE DoubleDecker WhopperDo and I’m trying to decide whether to use a twenty amp or a thirty-amp breaker.” (Red Flag #2: asking for electrical advice. #3: any decently mechanical person knows the correct answer.)
(Just so you know, the correct answer is NEITHER. You should use two thirties with a two-pole setup)
At this point, my dad would have a choice; offer to send an electrician to fix their issue, or spend the next thirty minutes playing Electrical Helpdesk.
And he usually did the latter. It was so hard for him NOT to answer the question, “What would you do…?” And he is just the world’s most helpful person, so he couldn’t help it.
Mr. SoAndSo would hang up the phone to go wire his house himself, and dad would hang up the phone and give his patented “grumble-sigh-aaaarrrgghhhh” (usually reserved for when I forgot to take out the trash). My dad knew that he’d just spent a half-hour helping someone NOT hire him.
He also had visions of some poor soul lying unconscious on his kitchen floor as his house burns down around him.
Electricity doesn’t mess around, and does not suffer fools gladly.
This “free estimate” culture pervades our society. Ask any sole proprietor in any service business and I’m sure they’ll have stories of a serial non-customer who calls for free consultation on a regular basis. The number of reasons this is a bad idea for all involved is too great to address in one sitting, so I’ll focus on the would-be client/pseudo-expert. I’ll even number them for simplicity.
1) If it were easy (and safe) enough for laymen to do, there wouldn’t be specialty trades.
We have electricians, plumbers, CPAs and doctors because their trades are sufficiently complicated to be regulated and licensed by cities, states and the Fed. Yes, there are simple things that we can all do for ourselves. Beyond the simple things, we are all better off leaving it to the real professionals.
2) Advice given freely doesn’t equal a specifically tailored solution.
When someone asks me a “general” question about insurance claims or Xactimate estimates, I give an equally general answer. My advice does not speak to the person’s individual situation, policy language or claim circumstances.
And, as I’ve learned from my dad’s experience, if someone does ask me to speak about their specific circumstance, I (usually) ask them to sign a service contract. Which leads to…
3) Action taken on free advice, which ends poorly, provides the recipient with ZERO recourse on the one who gave the advice.
Liability policies, Errors & Ommissions policies, malpractice and contractor bonds are all things that exist to protect clients from mistakes that people make. That is why some trades like lawyers have strict policies against providing ANY consultation or specific advice without compensation or retainer.
4) The world is full of smarter, more experienced people
This brings me to the heart of the matter.
If you believe that you are smarter than me, why are you asking me for advice and information? If you believe that you can do my job better than me, if only you can get a couple “pointers”, then why are you doing something else for a living?
What really gets me is those people who think they can outsmart industries and companies that have been around for HUNDREDS of years.
Do you really think that the IRS hasn’t already figured out the “trick” you’re about to try? What makes you think that your insurance company doesn’t know that people are constantly looking for a way to take advantage of their property claim?
The reality is that most trades have more potential pitfalls than jackpots. Professionals make their livings by knowing the rules and playing by them day after day. Getting rich quick just doesn’t happen (very often). 
For every story about finding the tax loophole or insurance claim trick that landed someone thousands of dollars, there are hundreds of people that found out the hard way that messing around with trillion-dollar industries is a bad idea.
I make my living the hard way: going to work every day and fighting for my clients. The fact that there are so few companies like mine out there is a testament to how difficult my industry is. Truth is, the insurance claims industry is downright hostile to new players with new ideas about how things can be done.
I continue to do my work because I believe that I DO have a better way, and I want to change my industry. Yet my approach is measured, in a “better mousetrap” kind of way, NOT in a “card up my sleeve” way.
So, to all of you out there who fight the good fight every day in their chosen profession, who put the best of themselves into everything they do because it’s the right thing to do, I say, “Carry on men (and women)!”
We are the light (or something like that).
For those of you with a problem that needs solving, find a quality professional to help you out. Ask people you trust for referrals, and take the advice of friends.
And to everyone looking for a shortcut via free advice, be warned. You WILL get what you pay for.
Photos (in order of appearance):
- Justin R via Compfight
Robert Couse-Baker via Compfight- Michael Hanscom via Compfight
- Seth Anderson via Compfight
- Dave Mathis via Compfight
- Strelban via Compfight
Neighbor’s Tree, Your House.
It’s that time of year again here in the Northwest. The weather is turning and the wipers need replacing. And, with the last storm system that blew through, a lot more than the leaves are falling.
As I was driving into work I saw several large branches strewn on the roads and in the ditches. That reminded me that Fall is officially Tree vs House Season.
I’ve handled many hundred insurance claims involving a tree falling from one yard and damaging (sometimes smashing) someone else’s home. Almost without fail, I hear the same things from the victims. There is a lot of misunderstanding out there when it comes to “OPP” (Other People’s Property) and home insurance, so I thought I write this little public service message for you.
Things to know when a tree hits your house:
– You can’t insure OPP. And your neighbor can’t insure your house. That means that the only insurance that could cover damages to your house from a fallen tree, no matter where said tree came from, is YOURs.
– Tree removal has limits. Most insurance policies contain maximum coverage amounts for tree removal, usually $500. Depending on the size of the tree, you could spend $500 very quickly. Make sure that whomever you get to remove the tree is aware of the limit.
- Shift coverage when possible. This means that you likely have coverage under your policy for things like board-up and tarping. If the same company that removes the tree also places a tarp for weather protection, have them separate their bill for both activities.
- When in doubt, leave the tree in the yard. Remove the tree from the house to prevent further damage, but leave the rest in the yard instead of racking up removal charges. You can always come up with a solution down the road.
– Don’t rush to repair or settle. The likelihood of hidden damages is high when trees and roofs are involved. I’ve seen well-built houses stand up to some big trees with little visible damage from the exterior. That does NOT mean that other things, like earthquake tie-downs and foundations, escaped unscathed.
- Retain an insurance restoration specialist. Preferably someone who understands structural damages and has the ability to refer a high quality structural engineer
– Call for your free consultation. Claims Delegates is always here to answer the tough questions. Should I turn in a claim? Who should I call first? Who should I trust? Trust the Badge. 888.745.7568
Kellee Gunderson via Compfight
So I was introduced to this site today.
Ron Garcia of The Garcia Group asked for references today at our BNI Meeting. The website is called Thumbtack. So I went there, gave him a glowing review, then signed up.
Part of signing up Claims Delegates involves putting a link on my website. Hence this post.
If everybody followed the rules, nothing would ever change. ~Richard Branson
Fighting upstream is hard. Being different is hard. Making real change is hard.
The last couple weeks have shown me just how hard it is to be different.
I had a potential client accept a settlement offer from their insurance company that was $75,000 LESS than the estimate I provided. Why would anyone do that, you ask? Because fighting is hard, that’s why.
Filing an insurance claim is an intimidating process, and it has been designed to be. The insurance claim process is only as helpful to policy holders as it needs to be to avoid massive complaints.
Once the claim department became a profit center, the needs of individual people became secondary. Anyone who has filed a claim knows that the first thing companies to is try to talk you OUT of filing a claim. The second thing is they try to write a check immediately to settle the claim.
Insurance companies understand that you are more likely to take less money right now, than to wait and get more money after a period of potential conflict; even when they know you’re owed more than what they’re offering.
Change is Happening
Claims Delegates is leading the charge for change in the insurance repair industry – and meeting plenty of opposition along the way.
Several adjusters have told me that they don’t have to “deal with me”. Some have accused me of breaking the law (adjusting without a license), which I’m not. In every instance, the only thing I’m guilty of is telling the policyholder the truth of the situation: that THEY ARE IN CONTROL.
The reason I face such fierce opposition is because they fear the change I represent. My approach and business model is nothing short of a 180 degree shift in “business as usual.” Carriers and program contractors alike do not want to lose control of the claims process. But they are, slowly but surely. And that scares them.
The most dangerous thing to the establishment is the idea that they are not in control. Once the idea of policyholder control spreads, the claims landscape will be changed forever. For the good of EVERYONE.
Change is Good
My vision of the insurance claims process is one that is truly customer driven. The ideal claim is one where the insured is equipped with the knowledge and advice necessary to make the big decisions the easy ones.
My definition of a “preferred vendor” is the contractor that the OWNER prefers, not the insurance carrier’s vendor who has agreed to give a discount to the insurance company. What about YOUR discount?
Why should restoration contractors enjoy profit margins that exceed 30% when the work is actually performed by subcontractors making far less? Who is paying for all this anyway?
Are You Ready for some Change?
Do you want a different claims experience? Do you want to know that your best interests are being considered and looked after?
If so, strap on your helmet, put an “R” in CHANGE, and get ready to take CHARGE. Stake YOUR claim, and Trust the Badge – Claims Delegates.
503-719-9821 Anytime, Day or Night
How to make the SMART move when choosing a contractor.
Choosing a contractor is tough, real tough. Most people don’t know where to start, so they do a quick Google search and get lots of bids.
Let me tell you, that process is a sure fire way to fail.
When someone asks for a bid, what they’re really saying is “price is my biggest concern.” What they end up getting is a bunch of numbers from contractors who don’t value their own time enough, and spend more time bidding work than doing work. Do you know what else you get when you choose the lowest-bid contractor? Nothing.
Don’t get me wrong; it IS important to understand how much a project will cost before signing anything. What I mean is that there is a difference between budgeting a job and shopping a job.
I stopped giving free estimates a while ago. (I won’t tell you when because, frankly, I’m ashamed it took me so long to “get it”). For years I couldn’t figure out why I was losing job after job, even after I thought I’d put on a great sales presentation and given a solid bid.
What I came to realize is that, for the most part, I’d lost these jobs before I’d even stepped onto the client’s property. And that by giving a “free estimate”, I’d actually de-valued myself and my company because I’d given no value to my prospective client.
Now, this article is about choosing a contractor, not being a contractor, so let’s get back on track.
In order not to fail as a consumer of contracting services, you need to start asking different questions. That begins by understanding that while price is a factor in any purchase, it is seldom the most important.
Question 1: What is my pain?
What is the problem that you’re asking a contractor to solve for you? Be specific and go deep (stay with me here). If you tell me your house needs painting, is it because you don’t like the color? Or is it because the existing paint is falling off and the rain is eating your siding? Both may require painting, but the later may mean that there are additional items to be addressed before a coat of paint in applied.
Question 2: Which contractor has the best plan to make my pain go away?
You begin to answer this question during your phone/email/Facebook/whatever interview with prospective contractors. Instead of wasting everyone’s time by asking for another “estimate”, start to ask how they would solve your particular problem.
Use this time to educate yourself on all the possible ways to fix it. Take the opportunity to learn something new.
You’ll quickly discover that the contractors who truly care about quality and customer service are the ones who take the time to explore the options with you.
There are always more ways than one to skin the proverbial cat. Every contractor has their own particular approach. So find the flavor your like, and then make your decision.
Elevated Pain
I’ll end this article with a story, and the reason I decided to write about this particular subject today.
I was recently hired to manage a painting project for a condo association. I was brought in mid-stream, after there were several bids on the table.
My task was to choose the “right” contractor for the job, and then supervise the project to completion.
This particular condo is unique in that it the majority of the building hangs off a cliff overlooking downtown Portland. The only portion of the building at “ground level” is the entrances to the units and parking spaces.
The rest of this two story structure is anywhere from thirty to FIFTY feet off the ground. This poses a particular problem when performing any kind of exterior repairs, including painting from a ladder.
The bids were all over the map. The highest was $26,000, which included $13,000 of scaffolding.
The lowest was $5,600 with scaffolding “BY OTHERS.” Naturally I started with the two in the middle (who were still $9,000 apart).
Two phone calls later I’d found my winner. This particular painter had looked at the project and seen the same thing that I’d seen: we had an access problem, not a painting problem. He had taken it upon himself to search out another contractor who specializes in scaffolding, and had received a bid from them which he included in his proposal.
Simply: he felt my pain.
Instead of finding scaffolding and setting it up himself, like the other painters were proposing, he freely admitted that he was not a scaffold expert and found someone who was. He solved my problem, instead of just giving me a painting bid.
My Resource
Now I’ve got TWO more contractors to put in my Rolodex, err, phone that I can use and refer to future clients. That painter showed me his willingness to provide value, and won my business going forward.
And the kicker is that he could have bid $4,000 higher and I’d have made the same choice.
Photos: Brittney Bush Bollay via Compfight , Joseph Staska via Compfight
