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Last Post 08/25/2012 8:11 AM by  claims_ray
Overhead and Profit
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synkroncty
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04/23/2007 3:54 PM

    I'm being asked to apply a flat 20% to overhead and profit. No 10 & 10. I can't find an option in Xactimate 24 that will allow a flat line item 20% overhead & profit. Is there a way to do this?

    Thanks!

    host
    CatAdjuster.org Founder
    Posts:709


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    04/23/2007 9:24 PM
    When you say a flat 20% are you wanting it listed as a one line item?

    The O&P boxes on the estimate parameters page will take any percentage you wish to use, but it will list on two lines, be sure cumulative is not selected, cumulative will apply the profit to the subtotal plus the overhead amount, so if you are using 10 and 10 selecting cumulative would give you 21%.

    John_Pendergrass
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    04/28/2007 8:47 PM

    Have you tried to just use one at 20% and the other at -0-, then put a tag line under them,  most firms want the 10 /10, maybe more info is needed, The wise one , Mr Cupp, is correct, but must check the settings,

    JSmith
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    04/29/2007 3:34 AM
    Uncheck the cumulative box located below where you enter the 10 & 10
    Gale Hawkins
    PowerClaim.com
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    Posts:386


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    05/02/2007 12:43 AM
     
    On the subject of O&P is sales tax always collected on overhead and profit, one but not the other, neither, etc? Does this seem to be by state statue or can it vary down to the county/cite level? Any experiences would be appreciated.
    Tom Rongstad
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    Posts:76


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    05/02/2007 1:54 PM

    Deleted

    rogpayx22
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    07/20/2012 10:20 AM
    When should O&P be paid?
    claims_ray
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    07/29/2012 10:49 AM
    When it is owed!
    CatAdjusterX
    Veteran Member
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    07/29/2012 8:37 PM
    Ask Reggie Warren!
    "A good leader leads..... ..... but a great leader is followed !!" CatAdjusterX@gmail.com
    lupoky
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    07/31/2012 8:16 PM
    Ask ten people and you are likely to get ten answers. My rule of thumb is if it is reasonable to assume a GC will be required to complete the repairs then add O&P. I used to be a GC so it is easy for me to scope the loss and make the appropriate call (Although not everyone always agrees with my call, but that is ok). READ THE CARRIER GUIDELINES. Some still operate under the old 3 trade rule, but most use the "reasonable to assume" theory. I deal with two carriers that will not allow O&P unitl a signed contract with a GC has been obtained on a loss that requires O&P.
    Leland
    Advanced Member
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    08/11/2012 3:47 AM
    The answer varies from state to state and carrier to carrier.

    Some states have case law, some have DOI regs, and some have statutes regarding this issue.

    As best as I have been able to determine, it is not settled case law in California whether the carrier needs to pay 10 & 10 when the insured acts as their own contractor.

    I have researched the case law/regs/etc for several states and if anybody wants my documentation just send me a private message with your email address and I will send you my research.
    rogpayx22
    Guest
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    08/16/2012 11:30 PM

    It's owed everytime.

    Is O&P not figured into the premium?

    okclarryd
    Veteran Member
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    Posts:954


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    08/18/2012 10:07 AM
    To most of the underwriters, O & P refers to their bladder and has very little to do with the premium calculations

    Happy Trails
    Larry D Hardin
    olderthendirt
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    08/18/2012 10:15 AM
    Well said, now I cannot think of anything sarcastic to say.
    Life is like a sewer, what you get out of it depends on what you put in it
    AcceleratedAdjuster
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    Posts:165


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    08/19/2012 7:29 AM
    Posted By rogpayx22 on 16 Aug 2012 11:30 PM

    It's owed everytime.

    Is O&P not figured into the premium?


    It is not owed every time. The only reason for O&P to be involved is if there are multiple trades that require the services and oversight of a GC. A single trade repair should not require a GC to look over their shoulder. 

    While I am not on the producer side of things, I do read a lot of policies and endorsements (probably more than the producers), and I have never seen an "O&P" endorsement, so no, I do not think it is "figured into the premium".

    It really is a judgement call, and one that IA's have a lot of trouble with, (as was said earlier in the thread, ask 20 people, get 20 different answers). My personal standard is to include O&P only if there are at least 3 trades involved, and the insured has stated that they are going to use a GC. If the insured does not clearly indicate the planned use of a GC, I simply get the estimate of repairs completed and submit it. If a GC calls when the repairs are completed asking for O&P, it is not a big deal at all to create a supplement and take care of it.

    The insured is not supposed to profit from the loss, so if the insured is hiring the trades individually, there should be no profit, and there is no administrative overhead. Should the insured decide it is better to use a GC to coordinate the separate trades, it is much easier to add something such as O&P to your estimate at a later date than it is to take it out.

    www.acceleratedadjusting.com www.acceleratedadjustingisrael.com
    AcceleratedAdjuster
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    Posts:165


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    08/19/2012 7:29 AM
    Posted By rogpayx22 on 16 Aug 2012 11:30 PM

    It's owed everytime.

    Is O&P not figured into the premium?


    It is not owed every time. The only reason for O&P to be involved is if there are multiple trades that require the services and oversight of a GC. A single trade repair should not require a GC to look over their shoulder. 

    While I am not on the producer side of things, I do read a lot of policies and endorsements (probably more than the producers), and I have never seen an "O&P" endorsement, so no, I do not think it is "figured into the premium".

    It really is a judgement call, and one that IA's have a lot of trouble with, (as was said earlier in the thread, ask 20 people, get 20 different answers). My personal standard is to include O&P only if there are at least 3 trades involved, and the insured has stated that they are going to use a GC. If the insured does not clearly indicate the planned use of a GC, I simply get the estimate of repairs completed and submit it. If a GC calls when the repairs are completed asking for O&P, it is not a big deal at all to create a supplement and take care of it.

    The insured is not supposed to profit from the loss, so if the insured is hiring the trades individually, there should be no profit, and there is no administrative overhead. Should the insured decide it is better to use a GC to coordinate the separate trades, it is much easier to add something such as O&P to your estimate at a later date than it is to take it out.

    www.acceleratedadjusting.com www.acceleratedadjustingisrael.com
    claims_ray
    Member
    Member
    Posts:293


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    08/19/2012 10:09 AM
    Posted By rogpayx22 on 16 Aug 2012 11:30 PM

    It's owed everytime.

    Is O&P not figured into the premium?



    Must be a contractor trying to influence untested adjusters.  LOL
    CatAdjusterX
    Veteran Member
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    Posts:964


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    08/19/2012 10:58 PM
    Posted By rogpayx22 on 16 Aug 2012 11:30 PM

    It's owed everytime.

    Is O&P not figured into the premium?

    ......................................................

    Oh, OK!! Wow I also wanna say thanks about schooling me on what I thought to be a twenty year 3 tab. Of course yes I can see now that it is INDEED a 40 year architectural laminate made to look like a 3 tab. Yes of course I get it that the insured just isn't flashy

    (Sarcasm)

    "A good leader leads..... ..... but a great leader is followed !!" CatAdjusterX@gmail.com
    rogpayx22
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    08/20/2012 7:20 PM

    Well Ray, can you answer my questions? Is O&P calulated into the premium?

    As a contractor am I not entitled to a profit, do you have overhead? I sure do

    claims_ray
    Member
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    Posts:293


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    08/25/2012 7:56 AM
    This is an adjusting forum. Not an Underwriting forum. I leave premium calculations to the Underwriting department and pay OH&P when it is owed! OH&P is not a GIMME!
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