I hope you didn’t make this stupid comment!
The highlighted message below (in quotes) was recently posted on a Social Media site by a contractor who, in my opinion, is ill-informed – at best.
“Attention Homeowners: Do Not Choose a Restoration Company/Contractor who has little, or no experience working with Insurance companies.
As the insurance policyholder, it is your responsibility to disclose any loss to the insurance company and provide the necessary documentation required to process the claim. You will need an estimate from a restoration company that meets the strict insurance company requirements, created using specific estimating software. If the estimate format does not meet the insurance company standards, it may be rejected.”
Sadly, the above statement seems to be the belief of many restoration companies! In my humble opinion, it’s absolutely WRONG.
First: The Skills and Experience needed are: knowing the correct way to mitigate and restore the property.
Second: what do they mean “disclose any loss?” If the toilet overflows in your home and you get it cleaned up quickly and properly, and choose not to make a claim (or the cost is below your deductible amount), you are NOT required to contact your insurance company.
Third: An Estimate is not required. Certainly, the property owner may want an idea of what to expect in costs, but it is NOT required, and the insurance company does not and cannot demand it!
Fourth: No insurance company has the right to require the contractor to use “specific estimating software.” There are several Estimating programs on the market and the key word is “Estimate.” That means approximate, close, about, in the area, a general idea or expectation of the cost.
Policyholders are required to immediately mitigate their loss to prevent further damage. This means they are required to hire a contractor and get the loss mitigated ASAP. No estimate is required by the insurance company, (however, the policyholder may ask for an approximate price). And, yes, the adjuster or agent may TELL YOU that you need to get an estimate but they cannot DEMAND it! No place in the homeowner policy does it require an estimate before work is done.
Only those contractors that have sold their souls to Third Party Administrators or Preferred Vendor Programs are expected to use the “approved pricing program of the TPA or insurance carrier – in the format they demand.”
Working With Insurance Companies.
As the insurance policyholder, it is your responsibility to disclose any loss to the insurance company and provide the necessary documentation required to process the claim. You will need an estimate from a restoration company that meets the strict insurance company requirements,
created using specific estimating software. If the estimate format does not meet the insurance company standards, it may be rejected.”
Sadly, the above statement seems to be the belief of many restoration companies! In my humble opinion, it’s absolutely WRONG.
Dick Wagner, National Marketing Coach, and Commercial Marketing Expert
