Estimating and Bidding Insurance work

[Bluewoodrock]

So 2 weeks ago we had a crazy wind/rain storm- Basically a mild hurricane.Now I'm getting multiple calls on insurance work and I have some questions bidding it.


1 - Is there any standard paperwork adjusters like to see, or should I just do my standard proposal and estimate I usually do?

2- How does payment work? I've done a little insurance work before and the HO paid me directly- I assume they had recieved the funds from the insurance company. Is that standard practice or does it vary depending on insurance provider.

3- Scope of work- Should I meet the adjuster and bid on what they indicate or should I bid on what the HO wants done?

4- Who picks contractor? Is that desicion for the HO or the insurance company?


5- Contingencies Do Insurance claims ever allow for bids with unset amounts, repairs not to exceed x amount, that sort of thing. Several of the projects I'm looking at have some unknown variables. Should I just assume the worst and bid accordingly or can there be allowances for time and material work.


any other tips or insights into insurance work are appreciated too


Thanks

[greentree]

Re: Estimating and Bidding Insurance work

There was just a thread on this a couple months ago, try a search.

I've done a little, not a lot but am familiar with the insurance industry to a degree.
1. some adjusters require more info or breakdown on your bid than others
2. I've been paid by homeowner only
3. Bid the damage or repairs required to restore the property to the original state, first time around go for broke and estimate to fix everything you see, you can negotiate with the adjuster later.
4. Homeowner always has the right to pick the contractor, at least in my state.
5.Id assume the worst when bidding, I doubt an insurance company would ever move forward without knowing exactly what they will pay out. Ask the adjuster questions if you're unsure, you're both trying to make the homeowner happy.

Like I said I dont have alot of insurance work experience but thats how i'd go about it.
Travis

[SuperiorBuilt]

Re: Estimating and Bidding Insurance work

I had a lot of leads back in 2006 for insurance claims. Most of these were referrals from a carpet cleaning company guy i have known for years. After he suck out the water, he would hand them my cards. After my third estimate, i notice HO were using friends to complete the work.( most likely doing the work themselves). From that point on, I made it a poilcy to charge for these estimates. This weed out a lot of the HO looking for an estimate to hand over to the Ins. companies. When HO ask why I charge for these estimates, I explain I would be more than happy to issue a credit for the quote if I won the job. This is a real time saver!!!

[Greg Di]

Re: Estimating and Bidding Insurance work

I had a weird situation where a customer I had done previous work for called me up because a tree limb fell and landed on their deck steps essentially tearing them off the deck.

The HO asks me to do an estimate for the repairs for him but he says he's already received payment from the insurance company to handle the repairs. I didn't ask how much that was. I give him an estimate for a little over $3,000 to rebuild the stairs (2nd story deck) and rebuild the railings with a gate. $3k sounds like a lot, but it was also a fairly involved project that required well over $1300 in material.

I give the HO my proposal and THEN he tells me the insurance company only gave him $1000 to do everything. I've never heard of the Ins co throwing out a number, let alone cutting a check without seeing a contractor's estimate.

This HO is a notorious cheapskate, so he could be blowing smoke. I never did the work and I never really heard back from him.

[BigLou80]

Re: Estimating and Bidding Insurance work

Greg,
I think an insurance company will take any chance they get to settle a claim for less.They will send an adjustor to give you their number.

Lou

[Shawn Prentice]

Re: Estimating and Bidding Insurance work

1. Adjusters like everything, I mean "everything", itemized.
2. Usually, payment is made to the HO and sometimes the HO and their mortgage company.
3. You bid on the storm damaged aspects of the project. Anything else is out of the HO's pocket.
4. The HO has a legal right to choose their contractor. A written agreement between you and the HO should be made before talking to the adjuster. Then, the adjuster is required to deal with you. I use a form that specs the work and is signed by the HO, but lists no prices which will later be negotiated with the insurance company. If the HO has any problems signing an "agreement" without a price just tell them they are only responsible for their deductible no matter what the negotiated price is.
5. Contingencies- have "price agreeable plus any supplements". It is impossible to bid damage that is hidden until it is uncovered and make the adjuster aware of that. I rebuilt a hail damaged deck and found out after construction started that the existing footings weren't to code. I had made them aware of the possibility beforehand and they paid what I needed to fix the problem.
There are many items they have prices fixed for and others they don't. Be all inclusive with your bid. My experience is that insurance companies measure and bid in their favor. I've never had the same square footage as an adjuster..you can guess whose figures are the actual and whose are short. Remember, just like you would call an attorney to deal with the insurance company if you were involved in an accident, you call a construction contractor in the event of storm/fire damage. You are the HO's advocate. Stand your ground and accept nothing less than what you need to do the work and do it right. I have found that if you're honest and fair with them, then most times you will be shown the same courtesy. Bottom line is that you're doing the work, not them, and you're guaranteeing that work, not them.

[lockhart76]

Re: Estimating and Bidding Insurance work

in alberta i noticed that sometimes the ins. co. pays the homeowner but the cheque is written to the contractor and ho. the contractor must sign it for the ho to cash it or vice versa. therefore you know what the ins. is paying out. can screw you though b/c you can sign the cheque and the ho cashes it an then decides not to do the work, only some of it, DIthemselves, etc. and your time estimating etc. is lost.
this happen elsewhere?

[Alley McInnis]

Re: Estimating and Bidding Insurance work

I am in South Florida, most insurance estimates are compiled using Exactimate software which breaks down every room by size and quantity.


Alley