Insurance

Do I Need 3 Bids?

The short answer is NO! This article will explain how obtaining multiple bids or using a “preferred contractor” only helps insurance companies underpay claims.

With most home or business owners insurance policies your insurance company is responsible for paying the entire cost of repairing your home or business after you pay your deductible. Thus, your insurance company has a strong motivation to minimize their costs. Some insurance firms will go to great lengths to delay or deny claims or use other questionable tactics to save money.

Insurance companies have deep pockets and they pay lobbyist a tremendous amount of money to influence government officials to protect their interests rather than the interest of home or business owners.

If the insurance company already knows the market value of fixing or replacing damage to your home or business, then why would they suggest, or in some cases insist, that you get multiple bids? It’s because the insurance company wants to manipulate you into either:

1. Obtain a cheap bid from some “Chuck-In-A-Truck” that is willing to repair your home or business for less than what the insurance is paying.

2. Create a bidding war between the contractors so they lower their prices below market rates to win your business.

In either case, the price reduction benefit only goes to the insurance company. Your insurance company will only pay for what the contractor charges and will not pay you the difference.

Furthermore, low estimates encourage contractors to cut corners. Any contractor that is willing to accept a below market payment must cut corners somewhere to survive. Unfortunately for you, this may be that the contractor is: using poor materials, or the required materials.

Insurance Preferred Contractor

Another tactic used by some insurance companies to save money, is their insistence that you use their "Preferred Contractor". Insurance companies want you to use their Preferred Contractor because they have cut a deal with the contractor to accept very low margins in exchange for guaranteed work. Thus, these contractors are motivated to cut costs by cutting corners on the work that they do for home or business owners. Regardless of what your insurance company insists, you have the legal right to choose the contractor you want on your home or business.

Homeowners Insurance Canceled Because of the Roof?

Your homeowners insurance company may choose not to renew your homeowners policy at the end of the term if it deems your home’s roof is in poor condition. It’s very rare that your insurer would cancel your home insurance policy mid-term unless your roof was in really bad shape or you were behind on your payments.

Your roof’s age and materials factor into an insurance company’s decision of whether to renew your policy. But you may be able to prevent non-renewal with proper roof maintenance.

Reasons why a roof might cause cancellation

Home insurance companies sometimes cancel home insurance policies due to a roof’s condition. Here’s a closer look at some of the most common reasons why an insurer could cancel or decide not to renew your policy:

• Age: A home insurance company may hesitate to renew your policy if your roof is decades old and looks worn out.

• Poor maintenance: Stay on top of roof repairs to keep it in working order (and keep your policy active). Routine maintenance, like cleaning your gutters, is also important.

• Improper materials: Use newer roof materials when repairing your roof. Insurance companies often consider roofs made with outdated or unsafe materials as higher risk and are less likely to cover them.

• Current damage: Insurers may deem roofs that are already cracked or missing shingles as high-risk or not insurable.

Asbestos Roof

See Examples Below

Roof Damage

Organic Shingles

Clogged Gutters

How Should I Select A Contractor?

Reputation: See our reviews here

Quality: Roof installation process, quality control system, good materials.

Reliability: In business at least 5 years, will be around to service warranty.