You want us to do what? Send you 3 bids that we got from local roofers? Really? You want us to invest our time in a search for low-price roofers to save my insurance company money? What about the insurance policy we purchased - there is nothing in the agreement that requires us to do anything of the sort!
GETTING 3 BIDS FOR REPAIRS THAT ARE COVERED BY YOUR INSURANCE CARRIER IS ABSOLUTELY NOT PART OF YOUR INSURANCE POLICY AND/OR AGREEMENT WITH YOUR INSURANCE CARRIER!
Let's be very clear - your insurance company is not in business to rip you off during the claims processing and settlement process, but they are a "for profit business," and we can agree that they have mastered the art of making money!
How do they go about this? “Mr. & Mrs. Homeowner, get 3 bids to re-roof your home from 3 different roofing contractors and send them to us.” In most everyday situations this is always good practice. However, this is a definite DO NOT in a storm claim situation. Regardless of whether it is roofing, flood damage, or whatever else may be the case, your insurance company cannot:
A. Make you get multiple bids
B. Make you use “their” contractor and/or
C. Force you to incur the costs of bringing your home to code compliance
B. Make you use “their” contractor and/or
C. Force you to incur the costs of bringing your home to code compliance
There are several reasons NOT to get multiple bids related to storm repairs. Each is very valid and very beneficial to you getting everything you are entitled to in regards to repairing your home to its “pre-storm” condition.
Insurance companies are obligated to pay predetermined market pricing, updated monthly to reflect market increases due to high demands caused by storms. Insurance companies use a software called Xactimate or their own similar version, which determines material prices by region as well as labor prices. This software will produce your summary which lists all of your damage and the value of the claim, which you and your contractor are entitled to upon your home being inspected by your adjuster.
Materials and labor are very sensitive to market surges. Shingles, nails, decking, and associated materials can increase by as much as 30 to 40 percent during storm season. In an area as affected by wind and hail as Texas each year, these price swings are all too common. Labor increases up to 10 to 20 percent are very common each spring and early summer.
Your insurance company is only liable to pay you their summary amount OR the bid amount from a contractor, whichever is the lowest, minus your deductible.
Bids WILL ALWAYS BE LOWER THAN SUMMARY PRICING! That is how you win bids, be the lowest. This is not a situation where you are trying to find the best pricing. When asking you to obtain 3 bids, what they are trying to accomplish is the lowest possible payout on your claim.
Herein lies the problem: There are no specs. When I am bidding commercial work or new construction the general contractor or architect is going to give me a list of specs to qualify my bid by. It is my job to make sure that I am bidding everything they are expecting. Your roof does not have a list of specs nailed to it. You have no idea what pieces, parts or materials each roofer will be leaving out in order to give you the lowest possible bid. Are they replacing your drip edge? Are they using rubber 3-in-1 pipe flashing or are they using fully encapsulating lead pipe flashings? Are they using metal in your valleys or just double felt?
Unless you are a roofer, you probably don’t know or care what materials are being used so long as it is the best possible roof. However, your insurance company only has to pay the lowest bid. They do not care if the bids are apple to apple.
Herein lies the problem: There are no specs. When I am bidding commercial work or new construction the general contractor or architect is going to give me a list of specs to qualify my bid by. It is my job to make sure that I am bidding everything they are expecting. Your roof does not have a list of specs nailed to it. You have no idea what pieces, parts or materials each roofer will be leaving out in order to give you the lowest possible bid. Are they replacing your drip edge? Are they using rubber 3-in-1 pipe flashing or are they using fully encapsulating lead pipe flashings? Are they using metal in your valleys or just double felt?
Unless you are a roofer, you probably don’t know or care what materials are being used so long as it is the best possible roof. However, your insurance company only has to pay the lowest bid. They do not care if the bids are apple to apple.
PLAIN AND SIMPLE: THERE IS NO ADVANTAGE TO YOU IN A STORM CLAIM SCENARIO TO GET MULTIPLE BIDS!!!
The only winning party is the insurance company. They will be paying the lowest bid minus your deductible. This number WILL BE lower than the summary amount. They do not give you the summary amount for you to then find the lowest bid, because you would be profiting and this is a felony. I repeat. IT IS A FELONY TO PROFIT FROM AN INSURANCE CLAIM. And believe me when I tell you insurance companies take it very seriously and always make sure the offender is punished to the full extent of the law.
It is important to understand your insurance company is not trying to rip you off. They are not trying to get out of paying for repairs that are needed. They are, however, in business to make money. Therefore, they are very interested in settling each claim for as little money as possible while staying within the law. It is not their job to act on your behalf and look out for your best interest. That is why you hire a contractor. This is why it is of the utmost importance to hire as knowledgeable and honest a contractor as possible.
