Hail Damage Contingency Agreements

I signed one of these agreements in
Atlanta, GA no details about materials, work or time or price, just whatever ins. pays plus $500 of my $1000 deductable. No one else signed on this form except me. After feeling uneasy about this I did some checking around and found a complaint filed with the BBB giving this co. a F rating. Then I decide to drive to the address on the form, turned out to be a UPS store where you rent mailboxes. The phone number on my caller id showed up under a different name, than the supposed owners name. Went to the city hall of the address to check for business license, none. I have seen work they do and they do finish it, but usually after finding more to go back to the ins. co. for, or the owner. I too worry about warranty issues. Oh, on the cont. contract if I cancell they are due a 20 per cent of total claim approval for there time and trouble. Although local companies do what they do for free. These guys make homeowners feel threathened.[list][/list]

You are not legally obligated to pay the 20% cancellation fee, because that Contingency Agreement is NOT a Contract.

A legal, enforceable binding contract requires many items to be included, least of all, a complete description of the work to be done, the types of materials to be used, a time frame for getting the project under way, the legal name of the business and legal official actual address of the business, not a PO Box, or Mail Boxes Etc. or Kinko’s address, and also the contractors License Number, if that trade is required to be licensed in that State.

If you choose to do business with an entity that you can not find and has a Grade of an “F”, what type of quality and customer service would you expect?

I would threaten and follow through with contacting your Local County and State Attorney Generals Office if they even dare to attempt to collect that 20% fee from you for canceling.

What is that 20% of? They have no contract, so pay them 20% of Nothing.

Ed

Ed, you’re the greatest.

For my part my stormchaser is local and I have looked at some jobs they have completed and they look just fine to an untrained eye. Since they have been working my neighborhood over pretty good I had a couple of normal roof contractors take a peek at their finished product also and they admitted it looked ok from the ground, but it’s pretty hard to tell what lies underneath in terms of quality.

It just makes little sense they can’t simply write out a detailed list of materials like other contractors. This would protect them also I would think.

In fact the most detail I got from a roofer was also in the form of a contingency depending on insurance, but this one was very specific in terms of what he would do. An excellent solid proposal and I was 100% comfortable he would do a great job.

Being specific in a contract helps both parties, being vague can lead to disappointment for everyone involved. There is no reason not to agree on the details ahead of time, it helps everyone understand the transaction more fully, why wouldn’t you want that?

It’s funny that what Ed says is exactly what our attorney said. Any % times zero equals zero. And since the original contract price in the contingency agreement was left undefined it is in fact zero.

The insurance estimate coming in and serving as the contract price I think is bullshit. The insurance company states in their settlement letter to you that you need to review the settlement with a qualified contractor of your choosing and verify you all agree on the work that needs to be done and the cost required to complete.

Ok, so alot of people here are against the Contingency Agreement.

So whats a poor roofer do to. Personally, I’m sick and tired of working for free. I get so fustrated when a homeowner doesn’t even know they have a claim, then after I inform them and write a proposal, they use my numbers to collect a check, hire some lowballer, and pocket the difference. :-X

We need more customers like you out there Island Native
:wink:

idiot savant,

Judging from some of the posts you have made in here I would suspect that you in fact are one of the lowballing roofers that makes my job so frustrating sometimes.

[quote=“THE OUTLAW ROOFER”]Ok, so alot of people here are against the Contingency Agreement.

So whats a poor roofer do to. Personally, I’m sick and tired of working for free. I get so fustrated when a homeowner doesn’t even know they have a claim, then after I inform them and write a proposal, they use my numbers to collect a check, hire some lowballer, and pocket the difference. :-X[/quote]

Just provide a true contract with a scope of work for like kind and quality along with the contingency agreement. Thats all that is needed to alleviate the customers concerns. Otherwise, they do not know what they are agreeing to.

You can also offer the proper options that they desire and provide them a choice of upgrading at their own out of pocket cost.

Ed

Ed,

I have a very clear contract myself. I specify how many layers will be torn off, what type of felt, ice and water, nails, where flashing will be done, warranty, etc.

I do not however specify the manufacturer until the job has been approved. However, I could do that in advance but I feel it is too much for a homeowner to take in all at once sometimes. I think it is extremely important for the homeowner to know exactly how their roof will be installed.

In regards to a contingency agreement being a binding contract I would disagree. We recently made some changes to our contingency agreement based on what our lawyer instructed and he feels that if filled out properly that it will hold up in court. We have yet to find out and hope we never have to, but if I do I will let you all know what happens.

I am considering that instead of the cancellation fee being a percentage of the insurance estimate that it be a standard fee. Lets say $75 an hour for time spent at a 10 hour minimum for the time it takes to measure, take pictures, and write an Zactimate.

What do you think about that?

[quote=“Authentic Roofer”]Ed,

I have a very clear contract myself. I specify how many layers will be torn off, what type of felt, ice and water, nails, where flashing will be done, warranty, etc.

I do not however specify the manufacturer until the job has been approved. However, I could do that in advance but I feel it is too much for a homeowner to take in all at once sometimes. I think it is extremely important for the homeowner to know exactly how their roof will be installed.

In regards to a contingency agreement being a binding contract I would disagree. We recently made some changes to our contingency agreement based on what our lawyer instructed and he feels that if filled out properly that it will hold up in court. We have yet to find out and hope we never have to, but if I do I will let you all know what happens.

I am considering that instead of the cancellation fee being a percentage of the insurance estimate that it be a standard fee. Lets say $75 an hour for time spent at a 10 hour minimum for the time it takes to measure, take pictures, and write an Zactimate.

What do you think about that?[/quote]

I can’t answer for Ed but here’s my 2 cents.

Too much to take in all at once? What part of the country are you from? :stuck_out_tongue: Thats a razz by the way.

Do you charge non insurance work customers for their estimates? To be fair I would only charge for additional time required in dealing with insurance.

To me it seems the only reason one wouldn’t include the brand is because they will install what ever the big box stores have on sale at the time. If your comfortable with a certain brand (and I think you like IKO) it would be in your best interest to include it. One of the major items on the contract

As long as your contingency agreement refers to the written specification contract, I don’t see a major problem with that at all.

That is the way that I do it, so that the full contract scope is part of the agreement, just contingent upon insurance company approval.

By doing it that way, you present a “Signed” Contract to the Insurance Company and they can not dicker with the prices, because (or IF),the home owner has a Replacement Cost Policy, the Insurance Company is Legally obligated to reimburse that home owner for the full value of the contract, minus their just deductible, plus any insurable code upgrades now currently required.

This way, YOUR rate for doing the roof is the accepted Replacement Cost, NOT the “Estimate” of the lowest possible negotiated price driven by Xactimate.

Anyone up for trading Contingency Agreements?

Ed

Yes I prefer IKO. I am happy to specify a manufacturer but I dont like going through color and shingle style because some homeowners take weeks to decide on that!

I always take multiple sample boards from multiple manufacturers for when I pick up a check from a customer and specify their selection at that time by laying the original over their copy and writing it in.

I would be willing to compare with you Ed. I dont have my newest one yet but I will trade my current one. pm me and I will give you my actual email address.

Just send it along to my e-mail address and when I get back to the office, I will have your e-mail address to reply to. Put your User Name in the Title and Contingency Agreement, so I notice it. I get between 60-120 e-mails per day.

I think I have about 3-5 different versions that I have acquired over the years.

Send to: EddiesDad@sbcglobal.net

Preferably, send it as an editable Word Document if you have that as an option.

By the way, I do not specify any manufacturer until they decide either. That allows them to choose from the various shingle samples from different manufacturers that I provide to them later and does not pigeon hole me to a brand that they may not have heard good things about from others before me.

Ed

Interesting…

Years ago I bid replacement windows for a local lady. It was a basic vinyl double hung. I didn’t specify a brand as our supplier occasionally changes manufacturers. It had been a while since I sold one so I was unsure what they carried.

Anyway, Window World had just come to town and was pushing their great $189 windows. They got the job. A couple weeks later they aired a radio ad with customer testimonials. I hear this local lady say how she was so happy blah blah… and that she even recieved one estimate without a specific brand of windows. http://www.21softs.com/emoticons/images/gah.gif

I always made a point to include the brands after that. Island Natives questioning is another example.

We choose the color later, but the brand and line are in when submitted. If they are unsure I’ll price options

Good stuff!

I have an agreement that I hijacked from one of these forums. I’ll find it and pass it along.

The problem I have is giving them a price. If I can get them to “approve the paperwork” before giving them the price, then maybe I can circumvent this

[quote=“Authentic Roofer”]idiot savant,

Judging from some of the posts you have made in here I would suspect that you in fact are one of the lowballing roofers that makes my job so frustrating sometimes.[/quote]

Why would you suspect that AR?

SES, That is funny. I hear that damn window world ad all the time and i think what the hell, what kind of window are they putting in for 189. I know I dont put that cheap of windows in or even offer them.

[quote=“Idiot Savant”]

[quote=“Authentic Roofer”]idiot savant,

Judging from some of the posts you have made in here I would suspect that you in fact are one of the lowballing roofers that makes my job so frustrating sometimes.[/quote]

Why would you suspect that AR?[/quote]

:shock:

Savant, why are you lowballing on Authentic LOL

Ok, so what if I were to call the “contingency contract” company and tell them I have canceled the claim and am using my own money to make repairs? Would they be any wiser? Not saying this is ethical, but for arguments sake? Ed the Roofer what say you?

A “Contingency Agreement” does not Legally meet the requirements of being a Legal Contract, but does establish, in writing with signatures, that there was an agreement in place.

Rather than lie to the Contingency Provider, tell them that you would prefer a local contractor who has been in the area servicing the community for years and will still be around in 5-10 years from now.

With that said though, if the contractor actually did more than just say, sign this agreement and call your insurance company and meet him and got it approved without having to fight for your clam, did he really provide you any service.

If he was the one who Championed your claim and got the claim paid for that otherwise might not have been, then there would seem to be an ethical bond to follow through with and allow them to earn their justly deserved profit though.

“To Thine Own Self Be True”

Is there any specific reason you would like to side step the contractor?

If not, then you are acting dishonestly, both to him, your insurance company and more so, to yourself.

Ed

I, unfortunately, signed a contingency contract as well without thinking “every” thing through. Now the “storm chaser” will not tell me verbally, or in writing, what materials will be used and how things will be done. They were not even going to use tyvek housewrap before putting new siding up. I had to pry that info out of them. It is difficult to contact them, and get them to return the calls. I even scheduled a day for them to bring out siding/shingle samples and the guy shows up without any samples telling me that they will drag me into court to collect money if they have to. I told him that I did not feel comfortable with them doing the work and wish to use another contractor who seems very honest. Additionally, I am having aluminum siding removed and they want to use the cheapest vinyl. I’m conflicted here. Btw, I live in Virginia so the laws may not protect me like the laws in your states do. Any ideas??