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AllCatMan
USA
39 Posts |
 Posted - 08/19/2003 : 22:09:52
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Here is one for ya to work on...
Working a large loss ($100K) you meet with contractor and insured, scope damages, and prepare a written estimate. O K so far. meet with contractor go over blind scope sheet.Contractor agrees with the scope.. comments on how much detail you have in estimate. then when you discuss bottom line he hits the roof. He is estimating $145K. He has no written estimate. he "never" writes an estimate, he knows how much it cost to fix things. Now do you :
a: Settle the undesputed scope with insured.
b: Tell insured to get another estimate
c: Send an independant contractor to write an estimate.
d:????
How would you handle this claim.
Just a thought |
Join in the Chat Room nightly 7cst/8est. |
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KileAnderson
USA
875 Posts |
Posted - 08/19/2003 : 23:26:43
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Pay off of your scope and tell the insureds that they won't get another dime until their contractor of choice can produce a detailed estimate based on the agreed upon scope and be able to justify any differences in pricing. I would also suggest that they get a contractor who is profesional enough to back his estimate up in writing.
If you want to be as diplomatic as possible, hand the difficult contractor a fully itemized copy of your estimate and copies of all of your drawings with measurements and tell him to add anything you missed and correct any pricing errors and be prepared to back them up with some sort of documentation. |
Edited by - KileAnderson on 08/19/2003 23:29:14 |
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Dadx9
USA
143 Posts |
Posted - 08/21/2003 : 20:32:33
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In general I agree with Kile. It may depend on your client. If you are working a storm, the client may want the claim settled and paid. If you are working locally, I would recommend that you either work with the Insured's contractor and give him 10 days to create an estimate. Write a Status Report to your client. Send a copy to the Insured. If after 10 days nothing happens, alert the Insured and secure another contractor. You could send the contractor the "blind bid sheet", but another inspection may be in order. This may irriate the Insured but you may be obligated to secure an "agreed price". Perhaps the Insured could put some well placed pressure on the contractor to co-operate.
Just my thoughts. |
Don
"To be held in the heart of a friend is to be a king."
Bruce Cockburn |
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RJ
32 Posts |
Posted - 08/22/2003 : 19:30:08
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First of all you are not going to get to first base with insured’s contractor. He has already convinced the insured that his cost of repairs (regardless of how he arrived at his estimate) is correct and you are low balling the cost of repairs.
Since you have an agreed scope of loss your only chance of settling the claim is to bring in a contractor that works with the carrier on a regular basis and have that contractor write his own estimate. Then settle with the insured based on the carrier’s contractor’s cost of repairs.
The reason this will work is because the carrier will accept their contractor’s estimate and you have a real cost of repair vs your estimate. Don’t be surprised or worry if the carrier’s contractor’s estimate is higher that yours. You now have a repair cost basis that will substantiate your settlement with the insured. The insured is not required to use the carrier’s contractor and the carrier is not required to pay an unreasonable amount for the cost of repairs.
If the insured still will not agree to a settlement then submit your report to the carrier for further direction. The carrier may decided to pay insured based on the carrier’s contractor’s estimate and just let the insured file for arbitration.
Remember your settlement recommendations can only be based on indemnifying the insured based on the policy coverages as they apply to insured’s loss. Indemnifying in this case is determining what is fair and reasonable cost of repairs since your already have an agreed to scope of repairs.
I have had to do this many times and not just on large losses (Been to New Jersey lately). Once the insured realizes that repairs can be made at a certain cost nearly all will agree to a settlement.
During this entire process make sure the carrier is kept informed. Handle the insured firm while at the same time being very diplomatic in your dealings with the insured. It is very important that the carrier backs you every step of the way to the final settlement agreement.
RJ |
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JMooreKC
USA
6 Posts |
Posted - 09/03/2003 : 00:54:40
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| I am a contractor at the moment (still trying to break on through to the other side) and i will tell you that I have totaled an apartment complex in Omaha NE a few years ago with State Farm. I knew down to the last penny (yes including ice and water shield) where my dollar amount was. Any contractor that says they never have a written estimate is lying or going to lose his rear on some job. I would do as said above and give them a line item estimate and just tell them to fill in the missing blanks.... |
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cat man do
USA
28 Posts |
Posted - 09/03/2003 : 09:19:42
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| Have you never worked With PA. I have worked with over a 100 in last year and they do write estimates , and I have had several meeting with insured PA and Contractor and insurance company advisor. using the contractor that PA slected to do the work and All come to agreement on scope and damage and agree on the price for all on site... and as soon as I send final estimate PA states not Enuff to complete repairs .... |
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TCRestore
USA
12 Posts |
Posted - 09/08/2003 : 16:07:22
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| A contractor that does not give proper, detailed estimates will not last long in the business. All restoration/reconstruction contractors should be required to provide detailed estimates just like the adjusters. However this doesn't help you in your predicament. I completely agree with the above suggestion of handing the contractor your scope and asking him to fill in the $45,000 in work you are missing on your estimate. You might also ask the insured to get a second opinion assuming the insured didn’t sign one of those “no way out” contracts. Good luck. |
Avery Morar, Marketing Director
WWW.TodaysConstruction.com
Avery@TodaysConstruction.com
24/7 (714)936-3716
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Edited by - TCRestore on 09/08/2003 16:09:56 |
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Catmandale
USA
67 Posts |
Posted - 09/10/2003 : 15:25:19
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| I think a point to be made with the insured concerns what he is getting from the contractor for what is ultimately HIS dollar. A contractor who will not itemize doesn't specify what materials and finishes are included. A fully itemized estimate keeps EVERYBODY honest. |
"When we thought that we had all the answers,
suddenly all the questions changed."
Mario Benedetti (1920); Uruguayan writer.
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Hard Headed Contractor
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