Important Code Upgrade Information

If you haven't run across this problem yet, there's a good chance that you will at some time in the future. You tear off a roof that has been damaged by hail or wind, and when you replace the roof, you install the job to code, i.e. installing dripedge, sheathing, vents, etc. These were not items listed on the original estimate, but you assume that the insurance company will pay for them on the supplement. As the football announcer Lee Corso says: Not so fast my friend!

Some insurance providers don't offer Code Upgrades. It is just a way for them to sell their products for cheaper. Most homeowners don't know what Code Upgrades are, let alone if their policy covers them. So what we recommend is having a discussion with your clients about how it is to be paid. If the insurance doesn't cover the costs, who will pay for it, you or the homeowner? We have paperwork that we offer to our clients to help them make sure they are covered. It is just one of the many services offered by our company, to make sure you, the contractor, get paid every dime that is owed to you.

When it's minor repairs, really, it's no big deal. What we are worried about are those big jobs, where it's something you didn't know or expect. When you tear off a wood shake roof, you expect to have to re-sheath the deck. But when you take off an asphalt shingled roof, and discover there is a solid one by, with more than a quarter inch gap, do you make the minor repairs to bring it to code, or do you re-sheath the entire deck? It all depends on the homeowner's policy. If they have Code Upgrades included in their policy, then it's a no-brainer, you re-sheath the entire deck. Don't ever assume that they have Code Upgrades! If they don't have Code Upgrade available, then you have to have the conversation with your homeowner. Do they want it done the right way, and pay the money to have it re-sheathed, or just do the minimum needed to bring it to code?

Re; Soldierboy's comment....

Yes, it seems there is a signifigant reliance on "insurance work". It may also appear to some, that the insurance/roofing relationships are going the way of, say, the medical industry, whereas doctors agree to charge "allowable" fees for specific services, (i.e., medicare, medicaid, etc...)...Sort of.

With this, comes the obvious corruptive behaviors, as well as the incredibly in-efficiencies associated with mindless, beureaucracy-like, insurance companies.

That's why we have a specific "medical billing" industry these days....It's way too much dain-brammage for the medical offices to want to tolerate in-house.

Just the other day, I spoke with a former em[ployee of a roofing company that relies on ins. work...They have a guy on staff, that works on a commision/percentage basis, based on what he can bilk out of the insurance companies, above & beyond the "regular" settlement offers. An example brought up was an aprx $50K job the company was awarded & happy with....This guy went back to the ins. co. & "massaged" over $100K for the same job!...Jackpot!!!!!

And so it goes.....

If the ins. co.s could just get it through their heads to implement "KISS" and just let the market-place, do it's thing....They'd be money ahead. Of course, the stormers wouldn't like that one bit! There would go that fat hog!

Interesting concept. It sounds like we can get the client to change their policy to cover their damages after the event. I'm going to look into that for my auto insurance.

The policies I've gotten, my agent explained the coverages before I decided which policy I'd choose, or could afford. B)

So far as roofing goes, this opens some brand new avenues for revenue. Up to now, I'd look at the damage and give a price based on what was needed. If adjuster's estimate was lower, I'd turn the HO on him to get full replacement value. If there was a discrepancy in the damage verus what the policy covered, the HO paid the deductible and the balance. From now on, I'll tell the HO to call and upgrade the policy while he's on the phone making the claim and it'll be a win for everybody. :)

It is called BC coverage. Insurance work can be profitable. Like any product that comes with a contract you need to understand the contract. KISS. B) :) :) B) Deep Down In Florida Where The Sun Shines Damn Near Every Day

Is all roofers now only doing Insurance Work?

Put together your material list before doing any job and you won't go wrong. You should know all of this before starting any job at all!