A growing trend among insurance carriers to use unlicensed, untrained “professionals” to assess damage and work insurance claims could get a whole lot worse. A recent report put out by McKinsey and Company notes how carriers can increase profit by moving as much as “30% of their workforce to outside vendors”.
Most contractors have experienced what it’s like to work with a “green” adjuster – or worse, an outside vendor that has no responsibility to serve the policyholder properly. Items get missed, estimates are not accurate, errors cause longer timelines and more. In addition, most of these unlicensed and untrained workers don’t even have the skills needed to understand and review an insurance policy. While it is unfortunate for the policyholder, those involved in the repair process, like roofing contractors, also suffer.
In fact, our data shows that contractors are underpaid for legitimate work performed by an average of $2k for each insurance claim.
With UPPA laws in place to remove the contractor from the equation, many question how these same laws don’t apply to insurance carriers who use third party “experts”. If the person is unlicensed, untrained and does not have the credentials to perform the job, how can these ladder assist, appraisal and engineer “experts” be allowed to make decisions that impact the claim outcome? Also keep in mind that most policyholders lack the knowledge to adjust their own claims. When contractors are not involved in the process and these hired third party experts make decisions that negatively impact a claim’s outcome, there is no one there to hold carriers accountable.
The good news is that one option exists to help contractors get paid fairly: use a claim supplement pro like Balance Claims or get properly trained to complete supplements in-house. Here’s why:
1. Think Like An Insurance Adjuster (Even Though You Aren’t)
If you can’t rely on the “experts” the carrier sends to create a detailed and accurate estimate, then you need to be prepared to fully document the claim yourself. This includes more than enough photos and information to create a justified supplement later.
2. Save Time Before, During And After A Claim
Missing line items and damage that didn’t make it on the original estimate on the carrier side will cause additional back and forth phone calls, emails, documentation and possibly even a reinspection. Using a third party like Balance can remove a tremendous amount of admin work off your shoulders. If you choose to keep supplements in-house, the proper training on how to manage this process will save your team time before, during and after a claim.
3. Maximize Efficiency
Time is money. Having an outsourced estimate and claim supplement partner means you can get more of both and do more with less people. We can handle a variety of claims including fire, water, mold and more which means you don’t have to wait until you have the perfect person to roll out new services. In addition, allowing us to manage the claim process means more time and less stress on your end.
Feeling the pain of unlicensed professionals costing your roofing company money? Get in touch with us. We focus on supplementing insurance claims so contractors can increase profits, save time and grow their business. Contact Balance about business or consulting by calling 888-618-0367 or by emailing success@balancedclaims.com.
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