Depending on what needs to be done, if there’s going to be $7K in overhead and 
profit just to sub it out, maybe ask if you could hire the subcontractors and 
do the paperwork yourself for that.  Pocket the difference, or use it to 
upgrade the materials.  That assumes the insurance company is cutting you a 
check for their estimated amount.

 

From: AF <[email protected]> On Behalf Of Lewis Bergman
Sent: Tuesday, March 5, 2019 10:00 AM
To: AnimalFarm Microwave Users Group <[email protected]>
Subject: Re: [AFMUG] OT Insurance Fraud?

 

One of the computer programs is called Exactimate. I have a freind that was an 
insurance adjuster. They get paid, for the most part, on a percentager basis. 
They try to be as liberal as they can justify without spending all day fighting 
for you. I know a guy that owns a Service Master business in town. I don't get 
the idea that that is a business with a huge margin. 

 

On Tue, Mar 5, 2019 at 9:39 AM Joe Novak <[email protected] 
<mailto:[email protected]> > wrote:

There is actually a estimation program built for the insurance industry for 
Fire/Flood rehab and remodeling. In my experience, the entire industry is very 
murky and the people ('General' contractors, as in the 'owner' of the job) are 
just as murky.

 

I worked for a Contractor just out of high school doing fire restoration. It 
was fun while it lasted, but it seems like no one related to the insurance 
industry actually wants to pay the going rate for work to be completed. 
Insurance didn't want to pay, then the general contractor didn't want to pay... 
and that is how I got started installing internet.

 

On Tue, Mar 5, 2019 at 8:47 AM Ken Hohhof <[email protected] 
<mailto:[email protected]> > wrote:

20% sounds normal for a general contractor.

 

Neighbors trying to get small remodeling jobs done tell me the market is so 
good right now the contractors only want big projects like $100K+ and flat-out 
tell people they don’t want the smaller jobs.  Not sure if that’s what you are 
running into, or fraud as you suspect.

 

I have a certain amount of sympathy for a contractor doing a small project 
which maybe involves the same a mount of work pulling permits, getting 
inspections, supervising the workers, and meeting with the homeowner as a 
larger project, yet pays a smaller amount.  But insurance companies weren’t 
born yesterday and presumably know what it should cost to get the job done.

 

 

From: AF <[email protected] <mailto:[email protected]> > On Behalf 
Of Sterling Jacobson
Sent: Tuesday, March 5, 2019 8:29 AM
To: AnimalFarm Microwave Users Group <[email protected] <mailto:[email protected]> >
Subject: [AFMUG] OT Insurance Fraud?

 

I have an insurance claim for a home project that pays out about $15k.

 

The insurance itemization shows a 10 and 10 overhead and profit for each item, 
so 20 percent of that $15k goes to the restoration company for management or 
whatever.

 

When I was given a budget for materials to pick on restoration it seemed rather 
low so I challenged them on their itemization.

 

They flat out told me 20 percent isn’t enough, so they take out 45 percent, or 
roughly half of that $15k goes to the management/restoration company instead of 
20 percent.

 

The rest is used for the actual labor and materials to get the job done.

 

Is that normal? 

 

Should I just let them eat all that money, or should I be shopping around for 
another restoration company that thinks 10 and 10 is enough for them?

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