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
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.
“Insurance companies rely upon the ignorance of their own policyholders. An uninformed policyholder will rarely argue with an adjuster, because they don’t know what they don’t know.” –Russell Longcore Insurance Claim Secrets Revealed! 2006
You’re an informed consumer aren’t you? You shop for high-priced items when they’re on sale. You’re a member of a wholesale warehouse. When you need home repairs you utilize a reputable referral service or get recommendations from people you trust. You even know that hiring a CPA makes sense at tax time, because they are good at taxes and you’re not. So why wouldn’t you take a similar approach when it comes to a fire or water disaster event?
The reality is that most people have little knowledge of either their own insurance policies or the claim process. And why would they? Only one in ten of us will have a major insurance claim event in our lifetimes. The rest will never need to know anything about their insurance company beyond where to send the premium checks.
I’m writing this article for those who aren’t as lucky. For you who HAVE recently experienced an “insurable” event, I have a question for you: would you let the IRS do your taxes? (stay with me here).
Arguably the IRS is infinitely qualified to file your tax return. After all they wrote the rules and they write the checks. Why not? The answer is that they aren’t working for you or your best interests.
“Beginning in the 1990s… insurance companies reconsidered [their] understanding of the claims process. The insight was simple. An insurance company’s greatest expense is what it pays out in claims. If it pays out less in claims, it keeps more in profits. Therefore, the claims department became a profit center rather than the place that kept the company’s promise(s).” – Jay Feinman Delay Deny Defend 2010
Letting your insurance company adjust your claim and write your repair estimate is exactly like asking the IRS to file your tax return. The industry is counting on the ignorance and complacency of its’ very own customers in order to return profits for their shareholders. There is good news though: you have the power to change it. Let me give you a few “secrets” that will enable you to take control of your insurance claim.
You can choose your Contractor
Most people ask their insurance company who they should get to fix their home. They don’t know what you know. These so-called “preferred” vendors play the game for their repeat customer – the INSURANCE company.
Choose you own preferred vendor. Who is most qualified to replace your laminate floors after they’ve been damaged by water from a broken pipe? How about the guy that installed them the first time? A kitchen fire destroyed the cabinets that you had installed in your remodel a few years ago? Why not call the contractor that you already know and trust to replace them?
Maybe you have one company that takes care of all your home repair needs, from landscaping to painting. They would be perfect to help you in your time of need.
Insurance repairs don’t require three bids
You don’t have to get multiple bids to get the best price. You’ve already chosen your preferred contractor, now they need to tell you what their price is.
Their estimate does need to adhere to certain guidelines (like being written in Xactimate or other industry software), because your adjuster needs to be able to read it. But that’s why you have Claims Delegates to make sure things are documented well.
“Restoration” contractors enjoy far higher margins
Imagine if you could make 30% more than you’re making right now just by learning a new language. Would you? That is what “restoration” contractors have already figured out. If they learn how to estimate using Xactimate, they can enjoy 30% higher gross profits than most contractors.
Now, when you choose your insurance company’s “preferred” vendor, where do you think that extra 30% is going? Do you think you’re getting 30% higher quality? Don’t you think you should?
By choosing your own contractor, and hiring your own insurance expert, you can enjoy the benefits yourself. Isn’t that only fair?
You are in Control of your Claim
Above all, you are in control. You have entered into a contract with a company to cover you in the event of a loss. Now that you’ve had a loss it is up to you to enforce your rights under that contract. Homeowners who take control of their own claim routinely enjoy claim settlements 40% higher than those who take what the adjuster gives them.
You are an informed consumer. You enjoy being empowered and believe in education. You know who your advocate is.
Insurance adjusters are not the bad guys (or girls). I’d like to take this opportunity to make the point that insurance adjusters have jobs to do just like you and me. There are several critical steps in an insurance claim and the adjuster plays a key role in each one.
[An] adjuster… was “repeatedly and severely criticized for using discretion and judgment in evaluating and adjusting claims.” – Jay Feinman Delay Deny Defend 2010
“Beginning in the 1990s… insurance companies reconsidered [their] understanding of the claims process. The insight was simple. An insurance company’s greatest expense is what it pays out in claims. If it pays out less in claims, it keeps more in profits. Therefore, the claims department became a profit center rather than the place that kept the company’s promise(s).” – Jay Feinman Delay Deny Defend 2010
I’ve spent the last fifteen years working in the disaster restoration industry. If you had a flood, fire, or any other disaster covered by your insurance, I’m the guy that put your world back together. I care, and I want you to feel as if your disaster never happened.
My grandfather was an insurance agent. My uncle is an insurance agent. In the old world of insurance, the policy holder was the most important. In this world, if a client pays his or her insurance, that person is covered—completely covered. If there is a disaster, everything is taken care of.
But that is no longer the case. The industry I have known is completely changed. My clients are no longer “in good hands.” They are no longer treated “like good neighbors.” The policy holders and contractors I work with are treated with suspicion and contempt. My work to service claims is falling under the accusatory gaze of adjusters. These men and women are under constant pressure from their bosses to conform to a system that favors corporate profits over policyholders.
When the game changes, we have to innovate in order to survive and thrive. Claims Delegates exists to help you thrive in the new world of insurance claims.
Gone are the days when a homeowner can submit their contractor’s repair estimate and get paid promptly. Today’s repair estimates must be submitted using specific software, in a specific format, within specific parameters. Skip this process and your estimate is considered “Non-standard,” and these repair estimates are either completely ignored or payment is severely delayed. Worse, if the payment is made right away, it usually means that your estimate is far below what the insurance company thinks it may owe: you left money on the table.
Yes, the game has changed. I can show you how to play it right. “Restoration” contractors still enjoy some of the highest profit margins in the construction industry. Fire and water damage repairs continue to be extremely lucrative and rewarding. You just have to know how to play.
“Insurance companies rely upon the ignorance of their own policyholders. An uninformed policyholder will rarely argue with an adjuster, because they don’t know what they don’t know.” – Russell Longcore Insurance Claim Secrets Revealed! 2006
Homeowners that understand their rights and are willing to educate themselves will continue to enjoy settlements that far exceed those of the uneducated masses. It is not uncommon for a homeowner to receive several times what the insurance company originally offered. You just need the proper tools.
Claims Delegates helps you navigate the changing insurance landscape. I will show you the way through a minefield of restrictions, objections and “deny first, pay later” systems set up to keep insurance carriers from paying their fair share.
You’re an informed consumer aren’t you? You shop for high-priced items when they’re on sale. You’re a member of a wholesale warehouse. When you need home repairs you utilize a reputable referral service or get recommendations from people you trust. You even know that hiring a CPA makes sense at tax time, because they are good at taxes and you’re not. So why wouldn’t you take a similar approach when it comes to a fire or water disaster event?
You can choose your Contractor
You are in Control of your Claim
