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Posted By Ray Hall on 28 Jul 2011 02:03 PM

Now has the management of TWIA and the Fair plan. The recent rule will change wind /roof claims for these two carriers and all carriers in TX. I remember the ruling in 1991 that all comp. roofs had to removed before going back with new shingles and then ruled that removal was not betterment or subject to depreciation as it was all one operation. Well this new ruling will cost billions more over the years.

An unsealed shingle is prima facia evidence  of direst wind damage that has to be replaced. O & P of 20% is required on all estimates(with or without) a GC and 18 percent interest from the date of the payment. Yes the fee bills should be higher and the  insurance rates much higher.

 

Ray, in regards to the O&P, you are speaking of 10&10 total right ?

This doesn't make a lot of sense(not you Ray, you make perfect sense, but TWIA TDI).   So bear with me for a moment,  Let's say a hail storm blows through and umpteen thousand of roofs must be replaced, so roofing Contractor X replaces the roof. With the "new" rule of O&P of regardless whether a GC is required or not , said roofer charges 190.00 a square and now he is entitled to O&P??? His profit and overhead is already built into the 190.00 a square, please clarify.

What I remember in the weeks and months after Ike, was that Reggie and Bill (TWIA management) were DENYING O&P on the roof replacement itself "WHEN there was a GC involved" so in essence the GC is including the roof replacement for free. I know that this was part of the Ike debacle that they wanted TWIA to change.

  

 

 The relese I read was in the Houston Chronicle and the way I read it was like I posted. O &P is due on all losses even if the insured does the work himself. Just remember all of TWIA ( IKE ) people are gone and we have a new ins. commish from South Carolina, with very good background in insurance. This job is appointed by the gov.