I have been adjusting claims for the past forty years and elected to pursue the public adjusting side of claims four and a half years ago. I recently ran into a claim in which Safeco/Liberty appear to be in collusion with an outfit by the name of Materia Supply Werehouse, Inc. The more that I dig into this matter, the more that this situation is troubling.
In the early days, before Xactimate and Simsol or any estimating software property adjusters completed market surveys by calling several repair contractors in a given area. We recorded the unit costs with high and lows and did our best to identify a fair prevailing rate for given repair/replace applications. Now, the vast majority of the insurance carriers utilize Xactimate.
Yes, there are areas in Xactimate that still cause some concern, but all in all, I believe Xactimate does a pretty good job and most repair contractors accept the unit cost allowances provided in their respective areas. Most of the complaints are generated from the insurance adjusters not properly identifying the full scope of the damage required for the repairs at a property. A very hot and heated subject is overhead and profit.
Now comes along a Liberty Mutual/Safeco program in collusion with an outfit by the name of Material Supply Werehouse Inc. The carrier is peeling off 6 to 8 dollars a square on the roofing unit cost provided through Xactimate and stating the prevailing rate is being set by Material Supply Warehouse, Inc. Please also bear in mind, the carrier is dictating the price to the Material Supply Warehouse. Inc. folks according to my sources. Something about this scenario is inherently wrong and I am reaching out to this community for help.
1- Does anyone know if Material Supply Warehouse. Inc. is associated with Madsky Inc.?
2- Has anyone out there run into this scenario?
3- This program appears to have been implemented just in time for the 2019 hail season?
THIS IS A VERY SERIOUS ISSUE…INSURANCE CARRIERS CANNOT FIX PRICES!