I have cought bits and pieces in some strings about the world of insurance work.
I have had a few jobs over the past few years that were payed by the ins. company. they were good paing jobs. I have learned that some firms specilize in insurance work and make good coin at it.
What is the key to breaking in to this market. Trump I am not, but I am a good, and skilled contractor. I just want to put some steak on the tabke for my Kids.
what do yuo say guy’s can ypu tip your hats for a minute or so
thanks,
Mick,
Replies
Mick,
Cant give you a lot, but compose a form letter and tell adjusters/ companies that you are there. Have a service area tell them that as well.
Go in the phone book and see who handles the type of work you are looking for and go to the Ins. Company direct, they have a list of who they call. I dont know if it is a conflict, but maybe even who you have general liability through.
I too have done a few jobs, it was funny, when people found out that I was willing to work with Ins Co. they started recommending me based on the fact that I had done similar jobs. I got a niche without even asking for it. The word traveled fast like I was a fire expert.
Add it to you business advertising. Bid high and make back some of what you have paid in.
Remember some companies wont pay for 60-90 days like commercial work, I had one that paid me before I was finished.
good luck to you,
-zen
Just saw your other post to Stephen,
Both Ins and customers will call, the ins will tell the customer they can use who they like if it is reasonable. All companies are different, some will even make a pay out then the customer finds a contractor on their own.
You set the price, I would figure custom ++, its a crap shoot, like any bidding, but dont feel like you need to take crap. They will tell you the things they are willing to pay for though, so check with the Ins Co before you bid to a client, the clients sometimes try to slip in extras that arent covered.
Also do great work, you can make the money on the bidding, but they obviously can become huge repeat customers. Im in a bid stage right now because an agent has 'someone they always work with' and the client wants me to do the work.
-zen
Edited 1/17/2005 8:13 pm ET by zendo
Anybody else have experience with Ins Companies?
This got buried last night.
Z.....Always had trouble with satisfing the insured and the insureer, Especialy the insured , a few months after the job was completed ,they thought they should have got more . Be sure the work is spelled out with both parties and live happily ever after.
Zen, I just answered an email about some insurance work I've done.
here is my reply to the request for more info:
I don't know where those posts are/were but I'll give you a brief rundown of my program.I was working for a friend, selling construction services. Occasinally we'd get an insurance call of some sort.On one occasion, I was at another friends house talking about insulation. He mentioned that he needed some replaced because it had gotten wet. He showed me a hole in his ceiling in a bedroom. I mentioned that this was an insurance job and that we would fix the insulation AND THE DRYWALL. Before I left, he wondered if I could look at his half bath in the basement. I found another insurance deal.I don't remember the specifics but here's the gist. I wrote up two separate quotes and just gave him the bottom line...about $3k total (it might have been more or less) . A skilled guycould have gone in and patched the BR hole and repainted, but I covered myself in case a lot more had to be done....I couldn't know for sure. The basement required a few vinyl tiles replaced (the entire bathroom was about 15 sf and some trim. If I had done all the work myself, I would have been looking at 16 hours total labor for me alone, including shopping time for materials.Anyways, the insurance guy calls me and complains that the estimates look high and could I explain it. Sure...I'll send you a letter explaining the situation. I send him two incredibly detailed letters listing everything that I'm going to have to do, but not putting a time frame or dollar amount on anything. When you read it, I'm going there maybe ten days in a row for the patch. I'm tarping the entire path to the bedroom. I'm sealing the vents. I'm sealing the doors. I'm spotlessly cleaning everything every day. I'm painting two coats, I'm priming, I'm putting up wall paper. I'm making this customers life happy in the middle of a MAJOR REMOD! I'm also including in this letter to the agent that our standards are very high and we are not going to risk our stellar repuation by cutting any corners or delivering any less level of construction than we would give to the Govenor!Of course all this sounds like a lot of work but the insurance agent wants more info...like prices! So, because I actually had a reasonably logical timeframe for setting up and knocking down and tearing out and replacing everything, I simply put a number by each and every line of the second letter.The third time the agent calls, he's frustrated. He wants to honor the claim, but he can't justify our high price because of the local "standard replacement cost estimates". I reply that we don't use unskilled labor to do our work and that professional installation require highly skilled craftsmen that don't work for peanuts like the competitions supplies. We also use only high quality products and we don't cut corners becasue we don't want to have callbacks or ruin our stellar reputation. Before the call ends, he's almost begging for some sort of consession. I offer up $100 if we get both contracts because we can schedule them together and have some "minimum" charge time setups removed.Basically, we got our high price becasue we could justify it, using meticulous detailing of our planned work.Ironically, this reluctant agent started referring us to other clients that needed repairs. He knew that with our high prices and high level of quality that he was "safe" mentioning us to clients that needed repairs.The most ironic thing is that I quit selling for my friend because his crew lacked the skilled qualities that I was telling people we had. Once I figured out that the crew was unskilled, I couldn't sell anymore becauese I'm one of those guys that cannot hide the truth.If you are able to deliver a highly skilled remodeling package, you can easily justify $100 per hour minimum and don't let any agent tell you other wise. It costs a lot to run a business and the hours on the jobsite are only a small part of the actual costs. When you explain that to any competent agent, he will ALWAYS agree with you.blue
ps if I was into remodeling, I'd go after this market with vigor.Just because you can, doesn't mean you should!
Warning! Be cautious when taking any framing advice from me. There are some in here who think I'm a hackmeister...they might be right! Of course, they might be wrong too!
I am not suggesting that you start fire to your house but the way I got in with insurance companies was my own house fire. I did the $30,000.00 repair myself and I started getting calls from them. I made nothing but big coin, the relationship ended when the adjusters thought they were taking on too much liability by recommending GC to do the work. It is now up to the custumer to call the contractor of their chose. At that stage I went into spec house building.
I've done a few insurance jobs. It really is a PITA when it comes to office time. Thats what you get paid for though.
Contact private adjusters. They are actually subcontractors for insurance companys and they work on a percentage of claim value.
Be prepared to spend big bucks on software packages
Be ready to go in the middle of the night to do whats classified as "preserve and protect". You may need to board up windows or whatever is necessary to protect the property from further loss. You'll need to stock about 50 sheets of plywood. Some guys keep a dedicated truck stocked with the essentials
After a while the adjusters think they own you and if you play along they basically do. You cannot say no to a project or it will be the end of the line for you.
If you can handle all that you will do well financially
I've done insurance work extensively.
Bids must be detailed (material and labor separated)
The insurance adjuster sets the dollar amount that the company is going to pay the homeowner (unless homeowner challenges). The difference between that, and my price has to come out of the client's pocket.
Insurance adjusters loved my bids because they were extremely detailed, and spelled out in great detail every aspect and part of the job. In almost every case, the adjuster paid less than my bid - until the homeowner challenged them. THEN they came within a few bucks of my bid, and everyone was happy. I got the job, customer only had to pay minimum out of pocket, and the insurance company was happy too.
I never made great money at it, but I made my normal asking price.
Here's where you gotta be REAL careful - sometimes potential clients call you up and asks for an "Insurance bid". Says they need the bid for the insurance company (same goes for bank loans too). Tell them PLAINLY that you charge for these bids, and if you get the job, you will deduct the bid cost off of the final price (if you want to do that, or maybe some other deal of sorts - it's up to you). You will soon start to get a feel for these people, and will learn quickly what questions to ask in the initial contact stages to help you weed them out.
These people need your detailed bid, but have no intention of hiring you. They will either get "Uncle Bob", themselves, or some friend to do the job for almost nothing, and keep the change (or get more repairs than the insurance company is really paying for). These people come out of the woodwork. Protect yourself, or spend lots of time doing detailed bids for someone not intending to hire you in the first place.
Just my humble opinion...James DuHamel
He who dies with the most toys.... Still dies!
"For what will it profit a man if he gains the whole world, and loses his soul?" MARK 8:36
http://www.godsfreemusic.com
thanks
When some one asks you for an insurance estimate say "sure, give me the name of your adjuster or agent". Then you can arainge to have the check made out in your name.
Where were you when the adjuster told me he'd pay $19.00 (total) to clean out 288 square feet of 18" deep wet blown in insulation in 3' of attic space. Oh and you'd have to take care of the disposal for that price too.
I have a very good friend that works for a $20 mill+ restoration co. The secret is they don't do any work, it all gets subbed to whoever is cheap and fast. Remember the old saying... Cheap, fast and good ... pick 2 cause you can't get all 3.
Good luck.