Roy,
This is an issue of indemnification and insurance fraud. My background: I first passed the 200 hour FL agent licensing exam in 1990. Not a 40 hour adjuster licensing class. Currently I am a licensed Property-Casualty Agent and Adjuster in FL and have a non-resident GA adjuster license.
When I pass AIC 36: Liability Loss Adjusting then I will have my AIC designation. What is my point? Well I got into roofing sales because I did not know a lot about construction or exterior damage to a dwelling. I have found that my insurance background is a blessing. Due to my insurance knowledge many property owners have asked me about insurance carriers, coverage, etc... At the moment I am not a licensed agent in GA but I have seriously considered obtaining my GA agent license as I am doing well selling roofs and if I could earn some extra $$$ selling HO3/HO5/DP2/DP3 and maybe even some extra things like inland marine, auto, umbrella policy, etc... and maybe even go after some commercial property coverages.
My point is that since I seriously been considering getting a GA agent license I called a few agencies and all of them have told me that they are very unhappy about out of work contractors, who are trying to survive, banging on the doors of homeowners telling them that they have roof damage due to hail or windstorm.
Well my post that you consider to be more appropriate in a roofing forum is totally appropriate in this forum.
Q. What is the concept of indemnification for loss?
A. Property owner is supposed to be made whole and NOT to profit from a loss. So if the insurance company pays a crooked homeowner $4500 in ACV money with a recoverable depreciation amount of $4000 and maybe even a supplemnt amount of $1000 due to some work being overlooked or adjuster material measurements being wrong, then this insurer will pay the insured an additional amount of $5,000 when proof of job completion is recieved.
Now if the homeowner keeps the additional funds for Completion of the Work and does NOT pay the contractor then the homeowner actually profitted from their loss in the same manner as an arsonist who burns down his home would profit from his loss. This is insurance fraud! If the insurance company was able to get the work done for the ACV amount, which in the case of the crooked insured occurs, then the insured must pay back the insurer the additional monies or be GUILTY of Insurance Fraud.
Because an insured is NOT supposed to profit from a loss. Anyway... if the insurance companies keep paying out on these hail claims then rates will have to increase and coverage will be restricted.
I have spoken to agents and csr's who have told me that homes with roofs of 10 years or older cannot qualify for RCV coverage and some companies will not even write new business on a home with a roof that is 8 years or older. So these criminal insured's are screwing insurer's, fellow insured's roofers, agents and possibly adjusters if the insurance company quits writing property insurance in a particular state due to loss frequency and severity.
I greatly look forward to replies to this post.