restoration business sucks ass right now

[steve g]

just got my 3rd job this week that wants to cash out on the repairs. The story repeats itself the people agree to the repairs I call my people to schedule them the adjuster shows up in the mean time and writes up an estimate as soon as the people see it they think oh 2000 to repaint and put up base board. I think I will have joe the broke dick neighbor down the street do it because he is out of work and he will not charge us 2000 to do it, we will get to keep half the money.

from now on I am telling the customer up front that once the process is started we can't call off the dogs, its getting to the point of being ridiculous. I am pretty frustrated at this point, thinking about all the money I have lost. ummmmm about 5k this week alone. this has to be a direct result of the sucking economy there is no other way to explain it.

 

[Art Kelley]

just got my 3rd job this week that wants to cash out on the repairs. ,,,,2000 to repaint and put up base board. I think I will have joe the broke dick neighbor down the street do it because he is out of work and he will not charge us 2000 to do it, we will get to keep half the money.

.

Welcome to the new reality.

 

[Desk Jockey]

Yea, like I told you, we've seen a lot more of the customer doing what they are able to and leaving the hardest stuff for us.

A sign of the times I guess? Certainly makes it more difficult to navigate in these murky economic waters.

 

[joeynbgky]

I dont understand why the adjusters dont require to see the paperwork when the work is completed so that the homeowner cannot make money off the insurance companies

 

[Bjorn]

well if your not using the latest and greatest in marketing you just have the wrong customers

I tell you what


With my new programme you can automatically weed out the dead beats and only attract high class and big money no questions asked customers

Learn my Billion dollar restoration secrets

Down economy no big deal

I have a client who makes millions in Flint Michigan so don't tell me about a shitty economy

COMING TO YOUR TOWN SOON!

 

[ACE]

The cleaning side isn’t any better other than the fact that cleaning requires lower overhead than restoration and its easer cut expenses when needed. What % bad dept to you restoration guys have last year?

 

[GeneMiller]

someone hit my pickup and the agent said it would take about 2500 to fix. he offered me the check direct in case i just wanted to pocket it. the final cost on the repair done right was almost 6. he told me a lot of people are just taking the check and not getting the repairs. hard times

gene

 

[steve g]

the other thing that sucks is it seems like farmers must insure every dam person in the state, BTW IF YOU HAVE FARMERS SHIT CAN THEM NOW!!! they have an exclusive deal with servicemaster ONLY and they hate independents. they are in the top 3 most difficult companies to settle a claim with. they refuse to even put our name on the check even if its for 20grand. they just don't care if we get paid. I always get beat up on my bill. they nitpick everything.

hardest to settle claims

1 safeco

2 travelers

3 farmers

in that order.

 

[Hoody]

Steve,

I worked with Farmers in Utah more times than I did with others. Never kicked me off a job, never had a problem getting paid. We weren't on their preferred vendors list either. Not sure why you're having a problem.

 

[topnotchman]

I had problems with Farmers here. Very nit-picky, I've been through it. Safeco just wanted a lot of documentation but that wasn't a big deal. So far Farmers is the toughest here.

 

[Desk Jockey]

A little over 1% for 2010, that's a lot of work for no pay.

 

[tmdry]

Adjusters cannot use the words or tell their clients that they are writing a check so they're insurer can pocket it. The truth is that the adjuster and his company does not care what you do with the money (as they have no control what an insurer does with their check). What they do is give you a check right on the spot, you see the "cash" and think "better something than nothing", this is a trick that many adjusters do, it has absolutely nothing to do with the economy. All he did was write a check, save his company $ by not having to pay more, and moved on to the next claim. Adjusters have a limit of how much they can write a check on the spot, typically is $10k or less, depending on the claim type/carrier. An insurer can refuse the check if he/she believes or knows it is not enough to cover the damages/repairs. If they do accept the check, but do not spend or cash it. They can re-open their claim, so they'll get fairly compensated for their repairs that need to be done by the current supply & demand in their area.

In some claims involving a home under a mortgage, the check is sometimes written to both the homeowner and mortgage company. The mortgage company has their own in house or private adjuster who is sent out to inspect the property, this way they know for sure the work is getting completed by both the contractor and the homeowner. This is not necessary for water damage or personal vehicles. Usually involves structural damage and/or major renovations.

 

[joeynbgky]

Thanks Bill!!

To bad they just cant write a check to the contractor when the work is done... god knows we charge alot less than servpro and dont rip the whole house apart to make more money!

 

[tmdry]

Thanks Bill!!

To bad they just cant write a check to the contractor when the work is done.

Most carriers have rules against writing checks to contractors/companies, however there are ways to get over this "obstacle". One of the reasons they typically don't write a check to the contractor (right of the bat), is because it may look like they are in favor of that contractor. The company/adjuster can only "advise" their insurers, there's a lot more to it, just have to understand how they all work, and not get hung up on their politics.

 

[steve g]

Steve,

I worked with Farmers in Utah more times than I did with others. Never kicked me off a job, never had a problem getting paid. We weren't on their preferred vendors list either. Not sure why you're having a problem.

stevie, yeah I get paid too and don't get kicked off jobs, the only reason they don't kick people of jobs is because they got sued for doing it!!!! this is per a farmers adjuster. I don't have a problem getting paid however if its a larger job, they refuse to put our name on the check, if they did it, it would protect everyone. now with people loosing their homes, whats to say that the people don't pocket the money. the customer has to be happy with the work or they don't sign the check and give it to me. the insurance company does not have to worry about me taking off with the money and doing poor or incomplete work. they are just being assholes pure and simple.

steven, remember you were and employee, what keeps me up at night as an OWNER is putting 6 or 7k into a 15k job and the people keep the money let the house go back and I am screwed.

the other thing is yeah they do pay out, but they are not paying for masking charges, while EVERY other company does. they want the most documentation out of any company, no biggie but it does take extra time. add to this getting nit picked and beat up on my estimate. I get paid less for doing the most work with the most risk to not getting paid. did I say farmers sucks?? compare that to 2 other companies that will leave the check at their offices front desk made out to only MY company I have picked up checks for nearly 20k they don't care and I make sure to never break their trust, because being able to pick up checks from their office is a HUGE benefit. funny both those companies ask for the least adjustments to my bill, but if they wanted it, they will get what they want.

and lastly when you start your own business you are going to see how taking off 200 here on this job, 150 on the next one etc with no work ever sent your way. and no name on check, will lead to a certain amount of dissatisfaction shiteatinggrin

 

[Desk Jockey]

We do next to no work with farmers, their agents are good guys but their claims department sucks. They are just not worth the hassle of working with.

 

[HydroDude]

We offer a warranty on our service...1 year on product and 3 years on workmanship... drywall, paint and base board are product if the owner does not want us to paint, there is no warranty on the product or workmanship do to the fact if the product is not prepared properly ie; caulked, filled, primed or sealed before painting, the paint can peel, drywall can crack or crumble and baseboard can warp...just one example, once explained the insured and insurer agree to have us complete the project.

 

[Dolly Llama]

I dont understand why the adjusters dont require to see the paperwork when the work is completed so that the homeowner cannot make money off the insurance companies

why??

what business is it of yours OR theirs if the homeowner can negotiate a better price from other contractors ?
OR do it themselves if they're capable?
Or have laid off Joe down the road


you, me and they pay their premiums.
The siding blows off and you expect them them to cover what it would cost for a licensed contractor to fix it

is there something wrong if i go to Alsides, buy a couple square of siding, put up my scaffolding, and hang it myself??
Why should I "have" to pay YOU to do it?
Why can't I pay MYSELF??


same for a homeowner that wants to paint their own walls or nail their own molding up.
or maybe they know a carpenter, or painter or butcher, baker and candlestick maker that will come over on the weekends for $20 bucks and hour .



what the hell is wrong with some of you people???


.L.T.A.

 

[bob vawter]

i can't figger 'em out Larry................

 

[Desk Jockey]

We're spoiled and want it easy?

The reality is some companies are easy to work for, so when you run into the ones that want you to jump through hoops and perform tricks, you don't understand why they have to make it so difficult.

I do understand where you're coming from Larry, they are under no obligation to us, only the insured.

 

[floorguy]

funny my wife just got in a wreck, and it figured to be about 1500 to fix it (based on my mechanic and his body guy..nothing major either) they figured it to be like $4000 or so and totalled the durango....

got a check for $4800 less my $500 deduct and 500 buy back (which my mechanic gave me 700 for)

easy as hell, infact they said 1000 on buy back, and when we said %00 they jumped on it (should have started at 200 lol)

easiest time i have ever dealt with an ins company.....


and we barley switched over in like Sep..

 

[Dolly Llama]

I do understand where you're coming from Larry, they are under no obligation to us, only the insured.

a couple years ago the washing machine took a dump.
right on the BRAND NEW floor I installed in the BRAND NEW first floor laundry rm/half bath I JUST finished doing not two months before..... :shock:

I said f0ck it..and called Ins
I already had it dried by the time adjuster showed up a few days later .

she cut a check and explained what it was for..a new floor and installation costs
Then I said....

"you know sister, something is missing here.
I did the extraction and dry down on this job.
If I hadn't of had the knowledge and equipment, I'd of had to call someone to do it"

She didn't hesitate and cut me another check ..... 8)


..L.T.A.

 

[Hoody]

Steve,

I worked with Farmers in Utah more times than I did with others. Never kicked me off a job, never had a problem getting paid. We weren't on their preferred vendors list either. Not sure why you're having a problem.

stevie, yeah I get paid too and don't get kicked off jobs, the only reason they don't kick people of jobs is because they got sued for doing it!!!! this is per a farmers adjuster. I don't have a problem getting paid however if its a larger job, they refuse to put our name on the check, if they did it, it would protect everyone. now with people loosing their homes, whats to say that the people don't pocket the money. the customer has to be happy with the work or they don't sign the check and give it to me. the insurance company does not have to worry about me taking off with the money and doing poor or incomplete work. they are just being assholes pure and simple.

steven, remember you were and employee, what keeps me up at night as an OWNER is putting 6 or 7k into a 15k job and the people keep the money let the house go back and I am screwed.

the other thing is yeah they do pay out, but they are not paying for masking charges, while EVERY other company does. they want the most documentation out of any company, no biggie but it does take extra time. add to this getting nit picked and beat up on my estimate. I get paid less for doing the most work with the most risk to not getting paid. did I say farmers sucks?? compare that to 2 other companies that will leave the check at their offices front desk made out to only MY company I have picked up checks for nearly 20k they don't care and I make sure to never break their trust, because being able to pick up checks from their office is a HUGE benefit. funny both those companies ask for the least adjustments to my bill, but if they wanted it, they will get what they want.

and lastly when you start your own business you are going to see how taking off 200 here on this job, 150 on the next one etc with no work ever sent your way. and no name on check, will lead to a certain amount of dissatisfaction shiteatinggrin

I understand your concerns I have the same ones as well. I remember Farmers putting both parties names on the check, which is why I was confused. Do you think it depends on the adjuster ? State Farm is the one we had problems with only writing the check to the homeowner.

I was at a sewage loss on Christmas Eve of 09, and worked well into Christmas Morning on it, a State Farm claim. They had a fridge downstairs in the affected area that had been turned off for a few days before the loss. They had tried to get us to haul it out for them as they hadn't been able to. I let them know they could call a local appliance place and they would haul it away and even give them $30 for it. I took pictures and documented the conversation, went over the documentation with them after we were finished and had them sign it. The pictures showed the food being spoiled for days, before the loss, as well as her signature where our documentation was. She gets the check for 8000 and change, and claims it was our fault we unplugged it. She decided to only send us a check for 5,000 in change and keep the rest to cover a new fridge/freezer and the food loss. The plug was 4 ft up the wall, and no wiring was affected from the loss, and the fridge was set up on a pallet there was only 1" of water. The long of the short of it was we sued her for the remaining 3000, and the judge said there would be pending insurance fraud charge if she did not pay in full.

Larry - I have been on a some jobs where the homeowners have done some extraction, and content moving. The ins companies have cut them checks. Or we would add that time into our bill, and cut them a check.

 

[Cameron1]

We never start a job without a credit card guarantee. It does not matter how big or small t.he job is. To date we have never been kicked off a job, never been played, nor call on or questioned about money.

For us, it is all about communication and constant talking with the homeowner.

The key I think, is to be willing to walk when someone(the homeowner) wants to change your rules for doing Business. You have to be willing to walk if someone wants to tell you how to do your job.

 

[Nate The Great]

I can understand your frustration about going through the process then they say never mind. Us as restorers, make the gravy money on the dry outs. I still don't see what's the big deal as you made the most money with equipment rental. If it's under a $1,000.00 for repairs, then we can do it without a contractor's license as our flooring license doesn't cover it. Once the dry out is done, it's referred to a couple contractors and out of our hands.

 

[steve g]

I can understand your frustration about going through the process then they say never mind. Us as restorers, make the gravy money on the dry outs. I still don't see what's the big deal as you made the most money with equipment rental. If it's under a $1,000.00 for repairs, then we can do it without a contractor's license as our flooring license doesn't cover it. Once the dry out is done, it's referred to a couple contractors and out of our hands.

actually I run about a 50% gross margin on repairs SO IT IS WORTH IT BIG TIME I carefully put in everything that needs to be done. I also keep my expenses low. yeah the big margin is in the dryout but repairs if you know how to work xactimate to its fullest has a healthy margin too.