can someone tell me what it is like to deal with insurance companies, meaning how are they at paying when job is done,do they take a long time to pay ,i was told they hold some money back to make sure there are no problems.any input would be great.i would like to bid on these jobs ,but a lot of guys dont because they dont like waiting for there money. thanks
A lot depends on the specific company. Saying all insurance companies are alike is no more correct than saying all contractors are alike. Some firms are pretty straightforward, while others are crooks.
Best advice is to be fair and be honest. Charge them as your would anyone, and make sure that you and they fully understand the scope of the work to be done. The only caution is to take extra pains to document the job - before, during, and after.
If you're going to have trouble, it will most likely come from the customer, rather than the insurance company. I've had a few want me to give them my bill for them to 'forward' ... when their real intent was to mark up my bill and make themselves a 'commission.' Such antics WILL complicate things.
These days, I would assume a 90-day pay for any customer that's "corporate." Again, this will vary by firm. Some like to play games, while others don't.
"Research" the firm. That is, ask them for names of previous contractors - and ask them. Ask your insurance agent, your lawyer, your bank for any information they might have on the firm.
The usual warning signs apply: if they make a fuss over how 'big' they are, or how 'legitimate' thay are ... take warning. Be aware that similar-sounding names may have absolutely nothing to do with each other (ie: Hartford Life and Hartford Steam Boiler).
Take note some insurance companies take the 90 days and want it for bargain prices. They assume u use the cheapest posibble materials and methods. They also do not pay for upgrades unless the policy has that riders. For example older home with no gfci protection, to install gfci is not covered the customer must pay the differance. The code requires it you are now in the middle. Get everything in writing and don t let them presure you into rushing untill the work is authorized.
Insurance policies usually offer "code protection" or something similar. If the customer didn't buy it, that is between the agent and the customer. If the AHJ requires a code upgrade it is out of your hands. This can bring up some interesting conundrums. If you didn't have the "code" rider, it might be cheaper not to put in a claim and get your house fixed under the table for cash.
Around here it seems like the insurance adjusters have some Restoration company they hire. I have never seen where an insurance company hires an electrician straight out. It seems to be the restoration company picks who ever they desire to do the electrical part of a job,
Doug that is correct however the property owner has the right to use whomever the want do whatever is needed. I have been working for ServPro as a sub for some time know and there are many diffrent ways the companies payout. Many times the restoration companies get paid by the property owner from a check sent to them for the job. It gets pretty confusing sometimes. Lots of record keeping to CYA!