Adjusting & Being Involved in Roofing Industry a No-No!

Just spoke to a person at the Texas Department of Insurance about the new law passed recently. Seems that being involved in the roofing industry, in any way, and being an adjuster is now illegal.

This means I won't be taking my adjusters exam. It also means that a few of you best be jettisoning your roofing business interests...

SUBCHAPTER F. PROHIBITED CONDUCT

Sec. 4101.251. CERTAIN ROOFING-RELATED BUSINESS PROHIBITED. (a) An insurance adjuster licensed under this chapter may not adjust a loss related to roofing damage on behalf of an insurer if the adjuster is a roofing contractor or otherwise provides roofing services or roofing products for compensation, or is a controlling person in a roofing-related business. (b) A roofing contractor may not act as an adjuster or advertise to adjust claims for any property for which the contractor is providing or may provide roofing services, regardless of whether the contractor holds a license under this chapter. (c) The commissioner shall adopt rules necessary to implement and enforce this section.

Added by Acts 2013, 83rd Leg., R.S., Ch. 903 (H.B. 1183), Sec. 1, eff. September 1, 2013.

http://www.statutes.legis.state.tx.us/Docs/IN/htm/IN.4101.htm

Along the same lines, I looked at a roof for a potential client who is clueless or is at least acting clueless. The roof is 25 years, past its life, and needs to be replace now. The only discernible storm damage was a couple of blown off tabs and some old hail hits. As I always do, I tell them to call their insurance and make a claim because "you never know" what will happen.

Sure enough, adjuster comes out and totals the roof and even gave them some interior damage. He fudges the age of the roof to 8 years but the age is clearly beyond its useful life of 20 years. The kicker is he says their policy does not cover "depreciation" so after the deductible, they only get a check that covers half the cost of the roof.

Under the law, I am forbidden to "interpret" their policy. So they either got a cut rate insurance policy and should be happy to get what they got, or they are getting screwed. I don't know. Nor do I know what they will do because to hire me is going to be a lot of money out of pocket. We are both screwed if they are looking for a cut rate roofer.

Seems to me that there are two laws here. One for "insurance adjusters" and the other for "public adjusters". An insurance adjuster works for the insurer and the public adjuster works for the insured.

A public adjuster called me-a contracting roofer- a few months ago and asked me if I had any customers whose claims were denied, etc. So he was soliciting business from me. I asked him how he was compensated. He never gave me a direct answer being very vague.

CIAK Said: To quote Roofguy.... Which is to say that a licensed adjuster in Texas cannot be involved in any roof-related business, i.e., roof consulting, infrared roof inspections for a fee, roof equipment sales, etc.

I spoke to an official at the Texas Department of Insurance again today to make sure I was getting accurate information. He confirmed that there is no discretion, that no licensed Texas adjuster may be involved in any kind of roof-related business for compensation. He also said they are ramping up enforcement of this.

(a) A license holder may not:

(1) participate directly or indirectly in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the license holder; or

(2) engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, or having a financial interest in, any salvage firm, repair firm or other firm that obtains business in connection with any claim the license holder has a contract or agreement to adjust.[4] B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

Yep. The rep said I can still defend my estimate on my hail damaged roof, but everything else is off limits now.

To quote Roofguy.... Which is to say that a licensed adjuster in Texas cannot be involved in any roof-related business, i.e., roof consulting, infrared roof inspections for a fee, roof equipment sales, etc.

I spoke to an official at the Texas Department of Insurance again today to make sure I was getting accurate information. He confirmed that there is no discretion, that no licensed Texas adjuster may be involved in any kind of roof-related business for compensation. He also said they are ramping up enforcement of this.

Public adjuster licensing statute states the following:

(a) A license holder may not:

(1) participate directly or indirectly in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the license holder; or

(2) engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, or having a financial interest in, any salvage firm, repair firm or other firm that obtains business in connection with any claim the license holder has a contract or agreement to adjust.[4] B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

None of this been to court yet so it will be seen how it will be determined. B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

CIAK Said: This law is a work in progress. It allows the adjuster to determine the true market value of H/Os damages, and by law he is not allowed to do that. So the adjuster is breaking the law. The scope of the damages has to be determined by the contractor and the adjuster is supposed to listen, then using... XACTIMATE.. arrive at the true market value once the scope is deemed accurate and acceptable. The point is...Contractor cannot act as a Public Adjuster and negotiate H/Os insurance claim. B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

Which is to say that a licensed adjuster in Texas cannot be involved in any roof-related business, i.e., roof consulting, infrared roof inspections for a fee, roof equipment sales, etc.

I spoke to an official at the Texas Department of Insurance again today to make sure I was getting accurate information. He confirmed that there is no discretion, that no licensed Texas adjuster may be involved in any kind of roof-related business for compensation. He also said they are ramping up enforcement of this.

This law is a work in progress. It allows the adjuster to determine the true market value of H/Os damages, and by law he is not allowed to do that. So the adjuster is breaking the law. The scope of the damages has to be determined by the contractor and the adjuster is supposed to listen, then using... XACTIMATE.. arrive at the true market value once the scope is deemed accurate and acceptable. The point is...Contractor cannot act as a Public Adjuster and negotiate H/Os insurance claim. This is a personal opion. the courts will decide in the future B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

Most if not all claims are QC'd( Quality Control). Indepentants and Staff are all rated based on claim accuracy.The higher the rating the more work the adjuster is given. Independant and staff will work all claims processing to the most allowable. Customer satisfaction is primary based on contract(Policy)provisions. The distinction between negotiating a loss and seeking information might be fine, but it is legally significant. The policyholder, not the contractor, has the right to negotiate the insurance claim. A roofing contractor cannot determine the rights and benefits owed to a policyholder. In fact, roofers and contractors who interpret policy language and negotiate policy benefits are acting illegally because they are not Public Adjusters. B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

I assumed that independent adjusters know that if they're too liberal with claims, they will have a hard time finding work.

Most of the claims I was involved with were large loss claims and I assume that those claims are examined by higher ups.

RoofGuy Depending on who the adjusters worked for you may have helped someone make a nice percentage on those claims. It makes nosense for an indepentant adjuster not to payout as much as possible on a claim. B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

I'm located in Ohio and there is a roofing company in my area that just started up last year that states in their ads "licensed insurance adjuster".I looked at the Ohio Insurance website and it looks as if this is illegal as well in our state.Not sure how to handle it.

natty Said:

Roofguy Said: It appears those days are over now.

It seems to me the whole point of becoming an adjuster is to work for an insurance company. But you can still learn everything an adjuster should know and even get licensed. Just dont work for an insurance company.

That said, it also seems to me it would be insane for an insurance company to hire an adjuster who had a financial interest in a roofing business. Therefore, the intent of the law must be to make the adjusting process more objective.

So before the law, was there a lot of insurance adjusters in the roofing business?

Natty, there are Texas licensed adjusters on this group who indeed make income from roofing ventures. Since I am against needless regulations, I intend to ignore it, but I have taken note and reserve the right to throw under the bus anyone I feel a need to. :-)

Years back, like in the 80's I remember Jim Day from Arkansas was traveling, adjusting and contracting.

I never knew how the game was played (just a shingler), still don't know .....but I always thought it was a bit odd.

Roofguy Said: It appears those days are over now.

It seems to me the whole point of becoming an adjuster is to work for an insurance company. But you can still learn everything an adjuster should know and even get licensed. Just don't work for an insurance company.

That said, it also seems to me it would be insane for an insurance company to hire an adjuster who had a financial interest in a roofing business. Therefore, the intent of the law must be to make the adjusting process more objective.

So before the law, was there a lot of insurance adjusters in the roofing business?

Well Natty, if you're going to quote the law, don't leave out the important part: ...or otherwise provides roofing services or roofing products for compensation, or is a controlling person in a roofing-related business.

Seems pretty clear to me.

I had and have no interest in adjusting insurance claims. I'd have to take a significant pay cut to do that and I'm too old and tired to take significant pay cuts.

It was going to be another feather in my cap, as well as a way to head off what I saw as the insurance industry trying to tie the hands of roofers. My goal was to beat the crap out of crooked adjusters (figuratively, of course) who screw insureds. That's what I've been doing for 34 years, just was trying to anticipate their restrictions/tactics..

It appears those days are over now.