Just venting.

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Cat 3

Active Member
Dec 19, 2014
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Kevin West
#1
Is it just me or does the rebuild side just suck. We have NO issues with mitigation but can't seem to make people happy in the repair side. It is usually the frustrations of the process. Waiting for adjusters, waiting for subs etc. I have paperwork clients sign when we start a job outlining all the steps of the process but it seems on almost every job that as soon as we are close to being done with demo, they think we will immediately start construction. I with this could happen but I do need an approved budget before we schedule subs and the client can't seem to grasp that.

I usually see a gap of 1-4 weeks between mitigation and starting repairs. What timeframes do you guys and gals see with your processes?

What can I do to better educate the client of the process to avoid frustration towards me?

Advice is welcomed as I am thinking I need to change our process OR just do MIT only.

Thanks,
 

Pinosan

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Nov 22, 2011
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allpointscarpetcare.com
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Martin Sanchez
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#2
tell them the scope of the job at the beginning, repeat it more than twice during the drying process, and again at the end.

begining " after your home is dry we will contact the "repair crew'. It ussually takes them 350 days for them to respond and maybe 450 to complete the job. put it in your written scope.

In the middle. I believe we should be completely dry in two more days and the repair crew will show up 350 days later. Hopefully they can finish the reconstruction in less 450 work days

At the end, I have contacted the repair crew they will be here 350 days from now.


just a thought
 

jtsunbrite

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Sep 4, 2015
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#3
I have about 20 of these or so, between adjusters and contractors, none of them have been started yet in the rebuild process. The rest we did were just the rip out process and then I left it with the homeowners and insurance to do the rest.
Been a very stressful 2 months,,,
 
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Cameron RDS

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Jun 2, 2015
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Cameron Duty
#4
I know exactly what you mean. I always tell them when I start this is a process that can take a while.
 
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Cat 3

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Dec 19, 2014
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Kevin West
#5
I have about 20 of these or so, between adjusters and contractors, none of them have been started yet in the rebuild process. The rest we did were just the rip out process and then I left it with the homeowners and insurance to do the rest.
Been a very stressful 2 months,,,
Yes beyond stressful. The home owners say they are too stressed and I just want to laugh because I have 20 jobs as well that are all stressful.
 

DamageClean

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Apr 25, 2010
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Brent J
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#6
VERY STRESSFUL!! Be sure to tell your clients to read their insurance policies very very carefully and to understand some of the Loss Conditions time frames.
On larger losses we see homeowners losing insurance funds due to non-compliance to policy requirements and this directly affects the contractors getting paid.
On most Rep Cost Policies:
1) A Proof of Loss with the dollar amount of Loss needs submitted within 60-90 days of date of Loss.
2) Repairs need to be completed in 180 days of the date of Loss or the policy reverts to an ACV policy--the homeowners can request extensions. Some policies go up to 3 years. On larger losses it's nearly impossible to complete in 6 months when it takes 2-4 months to get a dollar amount agreement of the repairs.

There are many more policy requirements that the insured needs to comply with that ultimately affects the contractors getting paid. The contractors have no say so in the ins policy requirements but good luck getting paid for the items when the Ins Policy doesn't fully pay the claim.

It's wrong how long claims take to reach conclusion but normally it is NOT the contractors fault.
 
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Cat 3

Active Member
Dec 19, 2014
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Kevin West
#8
VERY STRESSFUL!! Be sure to tell your clients to read their insurance policies very very carefully and to understand some of the Loss Conditions time frames.
On larger losses we see homeowners losing insurance funds due to non-compliance to policy requirements and this directly affects the contractors getting paid.
On most Rep Cost Policies:
1) A Proof of Loss with the dollar amount of Loss needs submitted within 60-90 days of date of Loss.
2) Repairs need to be completed in 180 days of the date of Loss or the policy reverts to an ACV policy--the homeowners can request extensions. Some policies go up to 3 years. On larger losses it's nearly impossible to complete in 6 months when it takes 2-4 months to get a dollar amount agreement of the repairs.

There are many more policy requirements that the insured needs to comply with that ultimately affects the contractors getting paid. The contractors have no say so in the ins policy requirements but good luck getting paid for the items when the Ins Policy doesn't fully pay the claim.

It's wrong how long claims take to reach conclusion but normally it is NOT the contractors fault.
Thanks you. Was about to drive my insane how the repair process takes so long to get off the ground and in the clients eye it is my fault. Any of you guys do mitigation only? Or do you feel you would loose jobs?
 

Cat 3

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Kevin West
#9
On top of that we have to deal with adjusters
Agreed price is a tough one and same with going back and forth with adjusters comparing estimates when it's usually us picking different codes than they do and writing from a contractor point of view. There are too many codes in Xactimate and it confuses the process of getting to the same final numbers.

I have temped to stop using Xactimate and just Doing my estimates on my letterhead and maybe there would be less going back and forth?
 

Cameron RDS

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Jun 2, 2015
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Cameron Duty
#10
Agreed price is a tough one and same with going back and forth with adjusters comparing estimates when it's usually us picking different codes than they do and writing from a contractor point of view. There are too many codes in Xactimate and it confuses the process of getting to the same final numbers.

I have temped to stop using Xactimate and just Doing my estimates on my letterhead and maybe there would be less going back and forth?
I have been mostly happy letting net claims handle making my bills and me submitting them. However, there is always one jackass adjuster.
 

DamageClean

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Apr 25, 2010
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#11
Cat3,

On large losses ($50,000+) I would never use xactimate for my estimates, if I’m the one doing the work..
Example of estimate last week (I’m the adjuster):
Xactimate with every line item possible: $2,100,000
Contractor #1: $2,450,000
Contractor #3: $2;700,000

Those are huge differences. Knowledgeable adjusters only use xactimate as a “rule of thumb” on pricing to set claim reserves. The actual cost of the job is set by the contractor doing the job.
 

DamageClean

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Apr 25, 2010
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iowa
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Brent J
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#12
cameron,
Net claims does pretty good on estimates in my opinion but they can only estimate off the information you give them and they can’t negotiate with the insurance adjuster.

Similar to my computer: bad info in means bad info out :)
 

Cat 3

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Dec 19, 2014
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Kevin West
#13
Cat3,

On large losses ($50,000+) I would never use xactimate for my estimates, if I’m the one doing the work..
Example of estimate last week (I’m the adjuster):
Xactimate with every line item possible: $2,100,000
Contractor #1: $2,450,000
Contractor #3: $2;700,000

Those are huge differences. Knowledgeable adjusters only use xactimate as a “rule of thumb” on pricing to set claim reserves. The actual cost of the job is set by the contractor doing the job.
Great info. I have wanted to back away from Xactimate many times. Not sure what holding me back other than fear for some reason. Xactimate is great on MIT but I don't make muck in repairs using Xactimate. You can't run a business off just O and P in my opinion.
 

Qman

New Member
Feb 7, 2017
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Quentin Tebb
#14
For me I when I talk with home owners/tenants, I tell them right from there start.

View this as 2 completely separate jobs. I am tasked with the first job which is mitigation and dry-out. I will be submitting a bid for the 2nd job but with no guarantee of actually getting the job. If you have concerns on the progression from the mitigation job to the repair job please email or call your adjuster. Once my repair estimate goes to the adjuster, it is out of my hands until and unless they phone to say I can go ahead with the repairs.

When I write our scope for repairs (normally the same day the last of the equipment is removed) I tell them my job is complete from our end, and they will get a call from whomever is doing the repair portion.

I find nipping it in the butt right from the get go and depending on the size of the job I will tell them "start to finish you are looking at anywhere from 1-3 months". If there is custom cabinets, hardwood etc it could take longer if the materials have to be shipped in.

Basically I tell them after dry-out I have no control over when the repairs start and it could very well not be me doing the repairs anyways.

Thus far I've had some really good success with this simply because it isn't my fault that repairs haven't started yet.

Company also doesn't use Xactimate. We just use spread sheets etc and hand in the bill. Repairs are the same way, $x per sqft, etc.
 
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Cat 3

Active Member
Dec 19, 2014
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Kevin West
#15
For me I when I talk with home owners/tenants, I tell them right from there start.

View this as 2 completely separate jobs. I am tasked with the first job which is mitigation and dry-out. I will be submitting a bid for the 2nd job but with no guarantee of actually getting the job. If you have concerns on the progression from the mitigation job to the repair job please email or call your adjuster. Once my repair estimate goes to the adjuster, it is out of my hands until and unless they phone to say I can go ahead with the repairs.

When I write our scope for repairs (normally the same day the last of the equipment is removed) I tell them my job is complete from our end, and they will get a call from whomever is doing the repair portion.

I find nipping it in the butt right from the get go and depending on the size of the job I will tell them "start to finish you are looking at anywhere from 1-3 months". If there is custom cabinets, hardwood etc it could take longer if the materials have to be shipped in.

Basically I tell them after dry-out I have no control over when the repairs start and it could very well not be me doing the repairs anyways.

Thus far I've had some really good success with this simply because it isn't my fault that repairs haven't started yet.

Company also doesn't use Xactimate. We just use spread sheets etc and hand in the bill. Repairs are the same way, $x per sqft, etc.
What sis the feed back from the adjusters by not using Xactimate? Do they even care? Do they try and get you to agree to their price and you say "this is our price "?

I do indeed like the way you tell the client the steps you are doing and setting the expectation.

Thanks for this helpful reply.
 

Qman

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Feb 7, 2017
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Quentin Tebb
#16
We are a strata/owner preferred so adjusters don't get a choice in the matter, besides we have actually gotten into other company buildings simply because we didn't use Xactimate. Adjusters occasionally gripe but they kind of just role with the punches and accept it. We are on excellent terms with quite a few adjusters as we deal with more large losses then small (and there is only a select number of high loss adjusters in our area). We have only had an audit once, and after it was all said and done, the Xactimate pricing was higher then our pricing simply due to site protection etc.

Our pricing is straight forward
Equipment - $/day
AntiMic: SQFT
Man hours - total
Disposal fees - drywall, lead etc
Supplies - normally 15% on top of what we buy (ex: we use 670 SQFT plastic but charge $32+15% a roll (each roll is 1k SQFT) which may come out to over $200 in Xactimate)


I do know when it comes to repairs, our pricing comes out lower then Xactimate in general so several adjusters just call in their preferred to do an Xactimate estimate knowing full well we will come under anyways.
 
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jtsunbrite

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Sep 4, 2015
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jeff kessler
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#17
What sis the feed back from the adjusters by not using Xactimate? Do they even care? Do they try and get you to agree to their price and you say "this is our price "?

I do indeed like the way you tell the client the steps you are doing and setting the expectation.

Thanks for this helpful reply.
they do not care that I have seen, what they are looking for is itemization of all things priced or quoted...

I only did about 50 insurance jobs after the hurricane, the rest I asked for payment upfront or after job was completed and they could deal with the insurance...

The adjusters and lazy contractors is what is frustrating us and the homeowners or tenants.
and they want pics
 

Anderson

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Aug 16, 2006
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Belton Texas
#20
When i did WD. I was,advised by an older mentor to do dry out and maybe pull baseboards and pullouts of carpet and pad if needed.....
And leave reconstruction to the owner and insurance.....

I actually listened to them....this time...
So all i did was dry extract, pull baseboards and carpet if needed....
And out the door in 3-4 days max...thats abiut when they get tired of seeing you.......
Left the bill to insurance and was paid in 2-3 weeks in most cases....

Soemtime we would put old baseboards back on but most of the time the ins. Adjuster would just replace them.......

Do your 3 days and go to your next job.....
Renting drying equipment is where you make most $$$ anyway
 
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