10% Overhead & 10% Profit for Fire Claim

Message

Author

Posted: Sun Oct 10, 2010 2:08 am Post subject: 10% Overhead & 10% Profit for Fire Claim

Additional question of a fire claim---what exactly is 10% overhead and 10% profit for a fire insurance claim? I haven't heard of these two terms. The policy has a 1.8% inflation rider; how and when does this apply?

jim

New member

Joined: 09 Oct 2010
Posts: 10

3.45 Dollars($)

Posted: Sun Oct 10, 2010 2:41 am Post subject:

They are what a general contractor charges (adds on to the bill) for the services that he provides. He hires people to do the work correctly and is responsible for that work. He knows who to call and when and is there to monitor their work. He has the knowledge to make sure that the job is done correctly. The GC charges a total of 20% of the bill for his/her fee. All standard and acceptable. (but I could tell you terrible stories about this... most to do with clean up companies. )

tcope

Forum Expert

Joined: 22 Nov 2006
Posts: 5199

Location: Salt Lake City, UT
286.08 Dollars($)

Posted: Sun Oct 10, 2010 2:48 am Post subject:

Good copy; I've got a CFP background, but your expert input is certainly helping with the HO terminology. How and when does the inflation policy kick in on a claim?

jim

New member

Joined: 09 Oct 2010
Posts: 10

3.45 Dollars($)

Posted: Mon Oct 11, 2010 1:56 am Post subject:

Without seeing the specific language of the rider, it may mean that the policy provides a 1.8% automatic increase in policy coverage limits for every year the policy is in force. Most companies just refigure the property value at each anniversary, inflate the coverage, and send a premium due notice for the higher amounts. _________________ CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers.

MaxHerr

Moderator

Joined: 29 Nov 2009
Posts: 4629

Location: Pomona CA
210.19 Dollars($)

Posted: Wed Mar 30, 2011 11:47 am Post subject: mjGlOqtiBNsXqTRIwsx

About14574.. Dandy _________________ Register Now to have your Insurance queries solved.