Hurricane Dolly victims in the Rio Grand Valley, Texas, can expect more of the same predictable underpayment strategies.
Previous commentary is repeated in this topic for public notice.
To the general RGV public, and public officials,
After hurricane Dolly, the next “storm” to affect the Rio Grande Valley residents is going to be the flood of undervalued insurance loss claim settlements.
From much past experience in the RGV, and around Texas, “settlements” will be short at least $200.00 per $1000.00, or approximately 20%, and more, by insurance companies (Allstate, State Farm, TWIA, USAA, Nationwide, Safeco, Farmers, Etc.) NOT including proper “Contractor Overhead and Profit” loss value line items in their construction estimates to policyholders.
See Texas Department of Insurance Bulletin B0045-98 to verify Contractor “O&P” is owed loss claimants, whether a prospective primary / general contractor is used, or not.
Losses DO NOT have to be “complex” or “require” a primary / general contractor, or “need 2 or more trades work”, for one’s to be owed, and paid, for those premium pre-paid for loss values.
Too, primary / general contractor O&P IS NOT included in the individual (roofing, siding, carpeting, painting, fencing, etc.) trades “unit cost” line items.
Check the math, by looking for the primary / general “Contractor’s Overhead and Profit” value line items on the insurance adjuster’s estimate total. If it is missing proper O&P dollars in any fashion, you have been underpaid, and your own chosen contractor’s “Cost plus 10%” estimate can appear to be too high, when it is actually accurate, and fair.
Too, be aware that Allstate has a 29% O&P line item, (IF they turn that construction estimating function on), in their own special version of “IntegriClaim” . However, it only reflects the various INDIVIDUAL specialty trade contractors O&P loss values. They avoid paying the 20% primary / general contractor loss value they collected by such loss claim settlement practice.
Hope this helps, because this clever and stealth underpayment issue is definitely going to affect RGV policyholders, families, neighbors, business owners, and contractors, yet again.
As this underpayment issue surfaces, please contact the Texas Department of Insurance fraud division. You can ask for Kerry Franklin, Dennis Pompa, or another public servant. Insurance Fraud Toll-Free Hotline 1-888-327-8818. tdi.state.tx.us/fraud/index.html
Please contact us after you do so.
P.S. Did you know it is against Texas law for an insurer to drop you because of making a claim after a so-called “Act-of-God” / natural event like a hurricane?