Prepare for another downturn

CIAK, What is up with that MSB anyway? They pay 1/3 of what Xactimate pays. I am having a problem with Hanover Insurance right now. They priced a 3 layer tear off at $16 per square, per layer.....Xactimate pays 43 first and 29 each additional. The adjuster has no idea about construction......I don't know where they find these guys. He tried telling me a modified bit roof that was damaged was just felt paper with tar on it :ohmy:

How can State Farm give me 162 for 25 year comp and Hanover give me 116 for a 20 year comp.?? The shingle price is only $6 a square difference!?!? Then this crazy adjuster thinks I am the hard one to work with.........and wont return a call.

Sorry to hijack your post....but if it wasn't for insurance work, I would be hurting bad. Thank God for hail and insurance companies!

CIAK Said: I was painting with a wide brush using the example of Xactimate as the tool. In your case it is working for you with out the program . It may not be necessary for you . Are you working claims in multiple states or localy .

I'm now in two states and I use the same method to determine price: I figure out my exact costs and mark it up to fit my desired business model. I can figure most jobs in less than five minutes after I measure the roof. I just don't see where it would help me to load everything into an exactimate program. It seems redundant.

Xactimate - Is ok as well - i have used it and is a pretty good idea - But i do as of 8 months ago refuse to pay for it because insurance companies were given the right to manipulate it for their own pricing - which totally negated the reason for fair pricing it was set up for.

Ciak, While i can agree with you as the downturn happens and as well with the insurance companies setting the bar - I do not agree that smart savy contractors should join a preferred programs - The more us contractors bow down to these ins guys the more power they have in controlling the market - Which is called a monopoly which in itself is fine when thinking in the business is business mentality - Meaning no regard for ethics or double standards from personal achievement vs how to business achievement.

If you play this out to its endgame what we get is the suppliers/ ins companies/ and government - running our businesses - They tell us when to replace - where to replace - how to replace - how much we can charge - snd determine who our customers are (getting us leads).

Definately some smart people behind this thata is for sure - Everyone is already hokked as you would say waiting for the next round of ins payouts - Most contractors only see dollar signs (the Hook) which bypasses all other brain function being (responsibiliy) which is takin away from the homeowner (easy sale) Giving responsibily (controll) to the Ins Companies which are more than happy to pay out for the (controll) and Dollars

In 2002 i paid 424.00 a year for home owners ins i would now pay $1654 if i would not have elected to take a 2% valuation deductable on wind and hail being it is only $1056.00 a year.

So lets look at what else we could have invested in in 2002 to quadruple our income in 8 years? last storm in our zip 2002 - my home is currently valued at even below what it was in 2002 -

So how do we take this power back? figure the building suppliers first make products withstand hail a little better for one and contractors actually use them .046 vinyl will withstand 1 - 1.5 inch hail pretty easily -- colors should not change as much -- insurnace companies should not be covering due to normal wear which hail should be recognized as if it hails in that state multiple times a year - dont cover whole house on exact matching issues for 1 or 2 pieces -- dont cover shingles for an indent unless mat is totally compromised. Wind damaged is most times caused by improper nailing -

The contractors know how to work the system alright cause they see dollars and dont see that they are being manipulated into thinking they are getting what they want and in the end they loose all thier power.

Like i said the insurance companies see the big picture as do i and i do not like it cause i will be and am being forced to take your route not of my own choosing.

Jeff When you state you have won all the jobs in this hail storm area could you be more precise ? I have to ask you another question . How is it you know about the HO's that don't want to pay their deductible ? One more question . Would it be worth it to take on these jobs do the usual quality work and win more referrals ? It doesn't make sense to me why someone would walk away from word of mouth advertising work generator referrals. Will you elaborate ? Please help me understand your position.

I personally don't see the need for that program. I have won all the jobs in this hail storm area. I have been right along with the insurance companies on some and other much higher. I think they must think the roof magically puts itself on when there is alot of landscape, 2 stories, 12/12 pitch etc. The homeowners that have gone with us regardless are the ones we want to work with. The home-owners that have stated that they don't even want to pay their deductable have been the ones we havn't gotten. Sorry, staying away from cutting my own throat. But, again haven't seen the need for a tool that someone else uses to drive your cost down and think that it's a fair margin.

Soldierboy :woohoo:

I was painting with a wide brush using the example of Xactimate as the tool. In your case it is working for you with out the program . It may not be necessary for you . Are you working claims in multiple states or localy .

I know what exactimate is. I know what it does. I just don't know why it's so important that I have it. I'm doing insurance work all the time and I haven't found any reason why I need the program for myself. I was hoping someone could give me a good reason why I should invest in it.

I understand why the adjusters need it.

Goggle Xactimate it will explain what it is and does . I was addressing the idea of working insurance claims . Though you can use it for other business. It is a fee based system . You are charged to use it .

CIAK Said: I dont know if that is rhetorical . Ill answer it just in case it isnt. As stated Some adjusters think like homeowners and don’t understand the construction business. You have to train them on the costs involved. Xactimate breaks this down and is the most widely used program savvy ? Xactimate is the estimating tool of choice.

It wasn't rhetorical and your reply didn't really elaborate. It's not you, its me. I'm not that familiar with exactimate or wrangling with adjusters.

I just haven't found a need for the program, but it's possible that I'm missing the boat.

I don't know if that is rhetorical . I'll answer it just in case it isn't. As stated " Some adjusters think like homeowners and don’t understand the construction business. You have to train them on the costs involved. Xactimate breaks this down and is the most widely used program " savvy ? Xactimate is the estimating tool of choice.

CIAK Said: . Xactimate is critical.

Can you elaborate on that statement?

The truth about the preferred contractors list are these . Not a complete list and not in order of importance . The nattering nay Bobs not so smart contractors..... 1 The prefer ed contractor programs will keep you busy, and pay you wages or little more . 2 There is little money in roofing if you are a preferred vendor 3 Not all insurance carriers have a (Preferred Contractor) program. They do not want the liability of recommending someone to perform work on an insureds home. One carrier that is deeply involved with a (Preferred Contractor) program is Allstate. It is easy to get on their program. Now for the smart and savvy contractors ................. 4 They can also help gain other business. Now for the smart and savvy contractors ................. 5 As most of you know I'm a State Certified roofing contractor and a I am an independent adjuster in most states that require lic . Insurance contracts can be extremely lucrative. Like any other business decision it has to be a win win situation. Some companies pay like slot machines and others never pay. Some adjusters think like homeowners and don’t understand the construction business. You have to train them on the costs involved. Xactimate breaks this down and is the most widely used program. Market to adjusters if you can find them, or directly to the insurance companies. Remember that the insurance contracting business is about service, consistent quality, and happy customers (these things make the adjuster look good and keep the referrals going). Independent adjusters usually refer at least three contractors for liability reasons, The stories told about the contractors that take care of customers brings lots of referrals. Be the best not the cheapest. Remember you are NOT the bank just the contractor. There is lots more if interested .

I go to a meeting tues with State Farm to get prefered contractor status,so im curious what they will have to say.They contacted me,and when i asked why?They told me that they had met me on claims and we were honest so they remembered us,was a good thing to hear.Some positive feedback is always nice.

I am picking up some business credit. Not much, but more than I had last year.

Re-roofing Resi is in the tank. Repairs have been slow too.

80% of Resi is based on Ins. Co. pricing, consumer ignorance and consumer budget. Not much new there except for the Wal Mart pricing that is coming down like an anvil. OUCH!

It looks GREAT when working for $10 an hr KASH, but sucks badly when quality workmanship requires a $60+ per hr. company meeting all legal requirements

I have no idea about the Allstate "flip"