By: Jason Sloan, Owner of CIBS
For many years all that was needed was 3 trades in order to get O&P. We have seen the insurers push back at an alarming rate on O&P. Why are they doing this?
In our honest opinion it corresponds to the economy recession of 2007-2008. New construction was all but halted. Many contractors that had built thriving business had to find new professions. A majority have gotten involved in insurance restoration work focusing mainly on roofing.
The reason for this is that hail and tornadoes occur every year. It’s a recession-proof industry, with the exception of pricing and O&P.
Insurance claims keep rising and with that their profits are getting cut, this does not sit well with them. The insurers are fighting back with limiting what is paid on claims in various ways.
- “Most insurers are holding code items until supplemented for and or while incurred.“ We deal with this by submitting code items per the ICC and the local building department. If not invoiced correctly many code items that have been approved may not get paid for.
- “Insurers are not paying for accessories and flashings that are undamaged on a roof or siding. The reason they give is that it’s not necessary and that roofers are completing the job without replacing those items.“ The bad part of this is we have seen roofers at an alarming rate not replacing accessories and flashings. This makes it very difficult for the contractors that are replacing all metal flashings and accessories to legitimize this. Not paying attention to what’s already paid for and what’s on the property can cost a lot in revenue.
- “These items are included in the scope of work.” We have heard this a lot lately, we handle this by calling their bluff and submitting Xactimate white paper on the item description.
- “O&P- we don’t go by 3 trades anymore, this job is not complex enough.” A job is as complex as you can explain it and show it is. Being able to discuss a claim with an adjuster with the pictures in front of them makes all the difference in the world. If they can’t make a decision then a supervisor needs to be contacted.
Contact us if you are having issues on files and let us free up your days.