I am seeing a trend in insurance companies including a line item that has wording like this:
This item includes a material allowance which reflects current material pricing in your economic region.
Material costs verified by Material Supply Warehouse LLC or some other "LLC" to set the price of materials. Then pay for installation for installation separately.
We are seeing as much as a 15% difference in our costs and their costs. Of course we could buy the cheapest stuff on the market, but I thought these “price lists” were “average market value”?
Is anyone else running in to this? What insurance companies do you see it? What course of action do you take?
My thoughts in the comments.
Thanks for your input!