Insurance, Bad Faith & Poor Claims Adjusting Hurts Small Roofing Company

July 04, 2018

As of July of 2018, the only contracts paid in full are direct to consumer. The only outstanding balances are those that remain unpaid by insurance carriers. 

Our Company decided to take on repair contracts with our clients involved in insurance claims. The carriers have done everything to delay the payment of approved claims. The adjusters are instructed to leave off needed components from their estimates and then deny payment for the components, such as, sheathing, drip edge, ridge, and needed labor hours for additional work not included in the adjuster's estimate. 

On one claim the adjuster intentionally left needed tasks off the estimate to delay and deny payment. ACR contracted to replace siding on Macon St. in Aurora, Colorado. The siding was covered by an electric panel that had to be detached and was not in new condition. The carrier, State-Farm, denied the needed repairs amounting to over five thousand dollars for the detach and reset resulting in replacement due to breaking on detach and code compliance. The adjuster stated that code compliance is covered under the policy except for the electrical panel unless directly effected by the storm. Before starting repairs the adjuster was asked for a certified copy of the policy but denied access to any exclusions like the electrical panel. Now Aurora Colorado Roofing appears to be stuck with the bill. The electrical was also not up to code with current building codes but State-Farm is refusing to cover the building code compliance named in the policy. 

Another client insured by USAA was mishandled by the carrier almost a hundred thousand dollars in work completed with the carrier delaying payment until they can find another company who is a specialist in the type of roofing. The carrier stated the delay was due to waiting for another contractor's bid for work already completed and billed. The independent adjuster filled us in with the instructions given to him to not include the most expensive components of the system. After making Aurora Colorado Roofing stop work for a week while they investigated, the carrier successfully delayed production for the whole company for a week and still provided an incomplete investigation excluding items without named exclusions and denied payment for items without a denial letter.

Aurora Colorado Roofing is calling for the review of all Insurance companies using Xactimate to pay claims. We ask that every file be reviewed for missing components and the carrier fined and consumer reimbursed for any items that were billed for but never paid. We ask for a change in law that the contractor must be paid for completed work within thirty days or the carrier is fined. We propose the fines go to further compliance with the carriers contractual payments.

Aurora Colorado Roofing is calling for the reform of appraisal law in Colorado. That the carrier must pay for both appraisal fees and umpire fees. Currently the carriers make the property owner pay appraisal fees to get a fair settlement. 

Currently a contractor cannot read policy to determine coverage. We request reform  that Adjusters may not read building codes to determine what is needed for code compliance due to the general lack of knowledge about construction in the Insurance industry. 

We request reform that claims cannot be settled with systems designed to lower claim settlements like Xactimate, if used it should only be used as an estimate not a limit to coverage. 

Starting Quarter 3 of 2018 Aurora Colorado Roofing will only take direct to consumer work. Any work involving the Insurance carrier the consumer must sign a Assignment Of Claim. The reason an AOC is now required is so we can go directly after the Insurance carrier for non payment, currently the carriers want us to sue our clients and they know we refused to do so. 

We hope to be around to continue to service our lifetime warranty on workmanship and are asking the public and public servants to stand up for the consumer and Contractor.

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