POINT OF VIEW: Managed Repair Programs Help Insurance Companies Not Homeowners

POINT OF VIEW : Managed Repair Programs Help insurance Companies NOT Homeowners

 

Public adjusters have negative opinions about any and all managed repair programs handling restoration and repairs in the event of a covered claim because they understand and have experienced unfair treatment by the insurance companies to the homeowners. There is no need to “paint” the Insurance companies in a negative light… just ask someone who has filed a claim on their own. They will tell you all about their horrible experience, their claim denial or the measly paycheck they received from their insurance company.  If they had a good experience one of two things happened: either they are unaware of how grotesquely they were under-payed or the insurance adjuster that handled their claim had very low claim payouts at the end of their accounting period, and needed to meet a certain goal of claim payouts, therefore, that person got lucky.

Politicians and insurance company advocates may try to sway you…. but you must remember to educate yourself before falling into their marketing schemes. Interview  fellow homeowners who have experienced the claims process. Speak with public adjusters who have worked for insurance companies in the past.  Conduct a thorough investigation before you agree to anything, ever!

 

2. Conflict of Interest: A Reduced Claim Payout for You, is a Bonus for Them.

 

Insurance company adjusters are not bad people. Remember, they don’t make the company policy; but they do have to abide by them. So if your super visor tells you “Jimmy, you will get a bonus this quarter if your claim pay-outs are lower than your peers”….well, isn’t Jimmy going to be motivated to find any and all excuses to reduce his claim payouts? Ding! Ding! Ding!  Of course! This is called a Conflict of Interest. The homeowner is the consumer, they buyer of the insurance policy. The homeowner’s interest, should be the insurance company’s number #1 priority; not figuring out how to reduce claim payouts in order to reduce costs and increase profits.

But this is America!  We are capitalistic and insurance companies have the right to make profits! They are a business after all!  –said no homeowner ever

…Yes, but not at the consumer’s expense. Go digital…. save on paper.… if you’re trying to cut costs because you’ve only been in business a few years .… maybe  don’t pay the CEO the same thing that Exxon’s CEO makes… There’s an idea!

And definitely don’t try to cut costs by taking the policyholders’ rights awayby forcing them to use a preferred vendor instead of a contractor of their choice. That’s right. That is what it has come down to and it’s called Managed Repair, Preferred Savings Plans, etc.

 

3. Ideally: File a claim. Get paid. Hire your contractor. Fix your house.

Real world: Nowhere near that

In a few words, agreeing to a Managed Repair Program means you are agreeing to let your insurance carrier send a company to your home to take control of the repairs…meaning, they work for the insurance company, not for you. If you have a complaint, they don’t answer to you, they answer to the insurance company adjuster. Good luck getting them back out to your house to fix whatever it was you complained about…they have dozens of other jobs lined up, sent by the insurance carrier and your petty problem is the least of their concern. If they don’t pull a permit, if they don’t use experienced , licensed contractors, that’s not going to matter, because YOU are not their client, the insurance company is.  Not to mention, your deductible has to be paid upfront and you’ll never see the insurance claim check: they go straight to the “preferred vendor”.

Managed Repair Programs are being marketed and sometimes enforced by the insurance companies for two reasons.

  1. They have less claim payouts by controlling the cost of your repair.  Instead of paying regular pricing to your preferred contractor, they force you to use their contractor and pay them significantly less to make the repairs. In turn, this “preferred contractor agrees to take this menial payment, because they are getting significantly more jobs by the carrier which will compensate for the loss. On a per job basis they might lose, by overall they are making tons of money. So do you think they are going to take their sweet time on your house? More than likely they will rush through the project, cutting corners, getting unlicensed, low-salary workers to complete the jobs so that they can increase their profits.
  2. They own or have a stake in the company that is their “preferred vendor”. It is public knowledge that South Florida Insurer People’s Trust also owns their affiliate company Rapid Response. It is a smart business model for the insurance company. They never lose. When they pay your claim, they are essentially paying themselves.
  3. The “preferred vendor” of the insurance company  provides a low bid to get the job. Once they get their contract signed by the homeowner, the “preferred vendor” will now request supplemental payments directly to the insurance adjuster. Again, these payments do not ever get to the insured; they go directly to the “preferred vendor”.   This tactic is meant  to take away the homeowner’s right to choose their own contractor, who has the best interest of the insured.

 

4. Hiring A Public Adjuster to Assist You With Your Claim

“Hire” is the keyword here. Insurance company advocates and or politicians will bad mouth public adjusters because we are “taking a cut” of your claim payment.  When you “Hire” someone, you should expect to pay a fee. No one works for free. Public adjusters file insurance claims every day, deal with many insurance companies and insurance company personnel. We experience all the different scenarios that you can imagine. The knowledge and expertise on claims handling that we can bring to the table to fight on the homeowner’sbehalf is far more rich, thorough and superior than the efforts of a homeowner who has only experienced a few claims, if any. Therefore, when you “hire” a public adjuster to fight on your behalf, we are not just “taking a cut” of your claim proceeds, you are paying a well-deserved and well-earned fee for the service we are providing.  When you hire a public adjuster, the fee amount is disclosed on the contract before the adjuster even begins working on your claim, therefore it is not hidden and it is expected that their fee would be paid once their services have been rendered.

Citizens Forces Policyholders to Use their Vendors by Limiting Coverage Insurance Companies Forcing Their Way Into Policyholder’s Homes-By Anthony Tinelli
DISCLAIMER: The information provided on this website is for educational purposes only. It also provides general information which is reliable but not guaranteed. The website may contain information on legal issues and is not a substitute to seek legal advice. Insurance information is subject to your own insurance policy language, coverages, endorsements and limits.