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 Posted: Thu Sep 04, 2008 2:39 am Post subject: Is it legal in MN |
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Is it legal in MN for a roofing contractor to pay your insurance deductible if they offer you an equitable exchange in return? Equitable exchange may be a sign in the yard, use of name as a satisfied client and/or referrals?
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Dave
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| Posted: Thu Sep 04, 2008 3:35 am Post subject: |
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| Why would it be? If your deducible is $500, they are simply paying you $500 for advertising. Technically I don't see this as "paying your deductible" as a deductible is not something you "pay", it's the portion of the loss your self insured for or the first part of your loss that your carrier does not pay. |
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tcope
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| Posted: Thu Sep 04, 2008 5:32 am Post subject: |
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| The deductible is the out-of-pocket expense of the policy holder, which he is required to pay at the time of the claim. I don't understand why the roof contractor will pay this amount? |
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jeorge
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| Posted: Thu Sep 04, 2008 5:40 am Post subject: |
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| Quote: | | I don't understand why the roof contractor will pay this amount? |
Because it's not being "paid". The contractor is lowering his/her charge in return for the customers advertising. Basically it's a discount being given. |
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tcope
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| Posted: Thu Sep 04, 2008 6:08 am Post subject: |
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Well, it seems to me a normal practice in MN for the sub contractors to pay the deductibles on behalf of their clients. However, it also seems to be specifically applicable to the ‘storm chasers'.
These constructors set up their services nearby a storm affected vicinity. And often you will find them advertising that they'll do the constructing job and along with will pay for your deductibles.
However, the insurance companies too seem to be comfortable with the idea of the contractor paying the deductibles. They only care about getting the deductibles paid.
~Jeremy |
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JeremyHolter
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| Posted: Thu Sep 04, 2008 6:38 am Post subject: |
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Well, so it works this way….the contractor gives an estimate to the policy holder.
The policy holder also receives an estimate from the insurance company.
The contractor then proposes to lower his quote by the amount of the deductible to facilitate the policy holder to repair his roof.
Is it kinda insurance fraud or this nexus has received the approval of the insurance regulatory authority?  |
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jeorge
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| Posted: Thu Sep 04, 2008 9:46 am Post subject: |
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Well first of all there is nothing illegal or wrong with this...secondly the ins regulatory authority would have no authority in how a person handles their own business....I'm with T on this one...it is not illegal, and certainly not fraud...they are just paying you the amount of your deductible to get the job, and to advertise, simple as that..
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Lori
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| Posted: Thu Sep 04, 2008 12:17 pm Post subject: |
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| Hi see, it is a known fact with the insurance carriers today that the contractors would be paying for the deductibles. Storm Chasers for instance would depict signs stating that they would agree upon bearing deductibles up to a certain limit. I'd seen an adv which stated that a contractor would bear deductibles up to $2k. Insurance Cos. won't let a customer file an unjustified claim or file 2 claims when the work is not done. ArindamSenIndies |
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ArindamSenIndies
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| Posted: Thu Sep 04, 2008 12:35 pm Post subject: |
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Guys,
Adjusters would more often show you that fact about the home owners deductible. There are adjusters who seem too ready to bear almost any amount. I'd once experienced the case of a house that got insured for $250k per year. It was quite surprising for me to accept when I saw the verdict of the insurance co. which stated-
* They owner should be provided with a roof if he needs it.
* If the owner has chosen a contractor, the contractor should be paid by the carrier.
At the end of it the guy's cars, home & his business got covered by them. So, there are more wonders to this world than we could even imagine!
Roddick |
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roddick
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| Posted: Thu Sep 04, 2008 12:36 pm Post subject: |
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| Quote: | | it is a known fact with the insurance carriers today that the contractors would be paying for the deductibles. |
That's news to me, and all other adjusters,  Some do there is no question, but it would be smart to check out any repair company that chases storms...
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Lori
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| Posted: Thu Sep 04, 2008 12:55 pm Post subject: |
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Hi, the payment would often depend on how old the roof is. There is a higher probability that the home owner would achieve a fair worth of what the adjuster has calculated for repair or replacement in case the roof is a new one. For older roofs, the payment may even not be close to covering the materials.
Regards, Fatman |
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fatman
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| Posted: Thu Sep 04, 2008 1:11 pm Post subject: |
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Well..talking about Storm Chasers..they have a brand for it in MN.
| Quote: | | For older roofs, the payment may even not be close to covering the materials. |
Under such circumstances the mortgage cos. would find a role to play. I've heard that giant carriers would also reimburse cent percent claim amounts through licensed contractors at times. But the contractors would never appear on checks.
I was told that there are owners who got fed for the entire claim worth (with even roofs aged 5-6 years) & that too in the absence of mortgage companies.
ArindamSenIndies |
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ArindamSenIndies
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| Posted: Thu Sep 04, 2008 1:35 pm Post subject: |
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Hi,
I had a word with a roofing-contractor in MN once, who said that he needed almost 10 years to develop his goodwill..& for that he didn't need to go for advertising.
Now, that his crew are getting 2 times to that of the Mexico crew..all he finds is that even though he has not become a rich man...but he is certainly leading a comfortable life!
Roddick |
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roddick
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| Posted: Thu Sep 04, 2008 1:42 pm Post subject: |
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Hi..remember the cruel hailstorm in 2006!
I won't forget...how it left so many homes with roof damages.
I'd still hear about homes that have leakages even today..it seems home owners would only learn at the expense of such hardships that choosing an outstation contractor won't do any good to them.
Regards,
ArindamSenIndies |
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ArindamSenIndies
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| Posted: Thu Sep 04, 2008 1:57 pm Post subject: |
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I was surfing through some construction forums a couple of days back..& believe it or not..I remember a roofing contractor who'd self-proclaimed how "rich" he is today. He is from MN, owns a good number of trucks & a couple of farms (& that too without mortgages). This chap is 50 years old..earned a good name for him doing his roofing job for more than a score of years now!
Roddick |
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roddick
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