| Author |
 Topic  |
|
|
genco
USA
18 Posts |
 Posted - 09/23/2002 : 12:57:39
|
What is the deal? Farmers and Allstate are at least 2 carriers that are attempting to stop paying 10 & 10 in selected areas regardless of more than 3 trades.
This will turn into a hairy legal mess in record time as established Restoration Companies based their pricelists with it in mind.
Couldn't that be a discrimination issue as the more reputable Companies couldn't take the jobs without raising their line item prices to compensate for the difference? Thereby excluding them from the competative market.
Another issue:(siding & roofs) These "Storm Chasers" come in and lock up many jobs, agreeing to do the work for lesser amounts than the going rate. They do the jobs, get the check and skip town without paying materials which leads to Mechanics Liens on the properties.
The Question I have is: Isn't there a liability issue when reputable companies that have fair rates are excluded as a result of these storm chasers. What about the Insured that has had a mechanics lien placed on there property because they could not afford to pay the local Contractor with the amount that was allowed?
Would love to hear some opinions on this.
|
Genco Joe |
|
|
slowhandfan
USA
26 Posts |
Posted - 09/24/2002 : 15:45:31
|
It is entirely up to the customer as to which contractor he or she chooses to do the repair/replacement. Insurance pricing given to adjusters at a storm site is not based on fly-by-night storm chasers.
It is based on pricing for that area prior to the storm (in most cases) Now as demand for contractors increase ('98 MN) carriers will raise pricing if the marketplace demands it. It is my experience that every storm I work, there is alway 5-10 good, quality, honest roofing contractors that will do the work based on insurance pricing.
As for 10&10..It seems the "rules" always change from state to state or storm to storm. The last Hail storm I worked (KY 6/02) State Farm was allowing 10&10 based on the customer having a signed contract with GC, and of course, 3 or more trades. |
Kerry A Freeman |
 |
|
|
genco
USA
18 Posts |
Posted - 10/30/2002 : 18:06:31
|
I beg to differ, as what you say is the standard practice (at least on paper) district and regional supervisors do make these deals. Point of fact Farmers in 62069 area code made a deal with the storm chasers "they called in" and the storm chasers did as many as possible, left town without paying the material bills, which left the insured with mechanics liens on their homes. Farmers was not paying the going or even fair prices to anyone at the beginning of repairs. Point of fact: 3 tab replacement was 15 - 20.- a square below the going rate.
All of the insured I talked too were coersed to using the storm chasers by the carrier. They were told, hire whoever you want but this is all we will pay.
After realizing their mistake, or at least got caught, Farmers called every insured in the area and told them to stop any work in progress by this company.
So unfortunatly it does happen and it is not fair to the rest of us left to fix the mess of half finished projects.
That was my point to the post. Things like this do happen and insured with limited funds cannot make up the difference. If the carrier did pay the going rate to begin with, there never would have been a problem.
The problem does not end here. The shotty work that was performed by this paticular company is substandard, (material was not installed properly) which will in the future cause more damages than usual when storm season hits again, comming right back to the carrier to pay for the same roofs when the shingles fly off because of poor installation. |
Genco Joe |
|
|
|
slowhandfan
USA
26 Posts |
Posted - 10/31/2002 : 01:26:57
|
I can't speak in regard to 62069 because I wasn't there but I have never heard of carriers "calling in" storm chasers to do contracting.
|
Kerry A Freeman |
|
|
|
fivedaily
USA
258 Posts |
Posted - 10/31/2002 : 14:59:30
|
In my experience, Allstate always pays 10 & 10 where it is owed. As far as my experience goes, there is no blanket statement that there has to be 3 or more trades. When the insured used a gc, they pay O & P. No conspiracy here. Simple and straight forward.
Jennifer |
|
|
| |
Topic |
|
|
|
Overhead & Profit
Forum Locked
