The thing is, most insurance companies do not want to be involved with being responsible for "project management" on the reconstruction, if that's what you mean.

There have been exceptions, with "preferred vendor" programs. And it seems to work OK with cars, getting it repaired at an approved shop so there is no price haggling that the policy-holder gets involved with, it's just between the shop and the insurance company.

But it doesn't work that well with houses.  Every one of those programs I have seen, the contractor starts out doing good work, then either gets buried in jobs assigned to him or cuts corners.  I had a co-worker who's house caught fire years ago, and the "preferred vendor" did everything as cheap as he could.  And the homeowner did not pick the contractor, so it gets very awkward.

 The insurance company has a financial obligation. That is what the contract says. It doesn't say they are going to send a contractor out to fix the house, or that they will make sure any contractor selected by the property owner does a good job. No, they basically pay what they owe.   And they name the lender - who also owns the house.

And if people don't agree, an arbitrator helps them to meet in the middle, and again it is ultimately an exchange of funds that will get them put back in their pre-loss condition.

We have talked about some green adjusters, but there are also some contractors I will refer to as "Johnny 6-Pack". When the Insurance company issues their settlement, the next chapter is between the property owner and the contractor, and that is a separate contract from the insuring agreement.

The contractor should have his own liability insurance - but even that policy will have exclusions for his "work product".  The homeowners insurance does not want to take on any responsibility other than paying what they owe, and that is a fiduciary responsibility.

The long post about Allstate is all automobile liability claims and does not have ANY thing to do with first party property claims. By the way the program is just a guide line. Auto liability claims and for that matter all type BI claims have subjective finding by the doctors doing the examination's in ever case I have ever seen.

I would not let a contractor that I did not select to do a MAJOR job on my residence. I would expect the insurance company adjuster to write an estimate that I would except, reject in whole or in part. If I rejected the scope and amount then I would file my estimate with a proof of loss form and a payment demand. I have never seen ANY insurance company who would use a contractor of their choice if ever policy holder was like me. Get an agreed cost and pay that amount ever time.

Donnie go back in the old CADO files and dig out my FICUS TREE system.

Thanks Ray...obviously...it has been a few years since I lurked around here....

Perhaps we should start a new thread...or private discussion regarding your concepts....I didn't fully read everything you posted, however, see if I understand...basically...you have developed a method for managing humans in the catastrophe realm that actualy resemble the real world processes that take place...yes....

So..the bigger question is "How do you create a company or economy" out of this..and, "What type of web based system is required to implement it?  I would love to collaborate with you on this...and, I started a new thread in the general discussion called "Web Based Software Requirements".....If you don't want to talk about it for business and intellectual property reasons...why don't you call me and I will talk to you about what I am doing!  I am a contractor / adjuster / software consultant...and, I have invested a lot of time and money in trying to figure out a solution that could help this industry, and, my pocketbook as well. 

Donny
817-793-2444

How can you feel good about being an adjuster with that attitude?
I don't look at it that way, it's not that black and white. Whoever gets their estimate done first, it is a point of reference for everyone to align the confusion of a damaged property.

Maybe the adjuster does a detailed, thorough scope. It does happen. Even if the estimate is terrible, it is a point of reference. "hey you left these 3 things out on this room, and..."

If the carrier issues the first settlement based on available info, and later there are some missed items that come up - it's better to pay the undisputed known claim when you know you owe it. I don't believe insurance companies are evil - or I wouldn't keep doing this job.

Contractors are not entrusted with policy knowledge, matching issues laid out by the DOI, and frequently focus on what the customer wants to "put back" as opposed to a strict focus on what was there.  You have 25 years construction experience with insurance type restoration claims, so you understand these issues.  Lots of contractors do not.

I had a claim just last week where a tree yanked off the power line and masthead to the side of a house.  Contractor estimate didn't include a lot of the collateral damage to the facia board, and some interior damage from some wiring repair.  I never, ever consider a contractors sheet to be a complete statement of damage associated with a claim.  Sometimes I learn from them, or find something I overlooked, but truthfully it is more often the other way around.  I often find missing items from contractor's estimates, and shine a spotlight on it to see if they were going to do the "unnamed task" within the job, or if it needs to be added.

Contractors that do not use Xactimate tend to write very brief, one-page estimates.  And when the budget gets tight, opinions can vary on what was or wasn't included in the estimate.  That rarely happens with an adjusters estimate - as we focus on unit costs and tend to be very specific in what bits and pieces are part of the claim settlement.
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One other thing, to put this all into perspective.  If a house has significant damage, the mortgage company will be named in the settlement.  Many lenders take a controlling interest in paying out funds.  It is often paid in thirds.  Even if you own your house free and clear, you wouldn't pay 100% of the job to the contractor immediately.

With that in mind, if you had a green adjuster write your damage sheet and the carrier paid it immediately - it's not like you signed a third-party release of all claims.  You have a contract with the insurance company, and they will have to respond to communication in a timely manner, look into alleged supplements or overlooked damages.

Who knows whats next, but one thing for sure, we will find out. This business is ever changing, and unfortunately, not for the better.

More interesting Reading, what else do we have to do? Perhaps we could volunteer for "dancing with the stars" or work in a Thanksgiving Soup kitchen.

Anything positive will be appreicated:

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