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Before you hire a loss management company-Read This
Have a fire? Maybe a water leak that destroyed a portion of your home? Well before you hire a loss management company that helps you deal with your insurance about your loss', take note of the some of the following information before you do anything.
For the last year we have done work for a management company remodeling and repair of burnt out homes. Taking up with this paticular group was a disaster. Not just for my husbands company but for the people they are suppose to be "looking out for"
1. Investigate the company! Some companies may be on the up and up but don't count on it.
2. Make sure you have an agreement spelled out word for word as to what is being done as per the insurance agent who inspects your home, after the incident. Be careful because they love to leave things out of the contract and and then at the end of it all you start wondering why somethings that the insurance company said were to be fixed, (and pay the management company for) were not done.
3. Third make sure you do not sign away your rights to your contents money. Part of the agreement is that the check goes thru the management company and at the end they deduct money from your contents check that were not covered in the contract you signed. I have seen people lose thousands of dollars by not realizing whatis happening.
4. Stand your ground, inspect what they are and are not doing for you. Complain to your insurance agent. They cannot get paid until you are satisfied. But don't be so naive that you think the insurance man is on your side either. That work with these people on a regular basis. matter of fact the field to do insurance work is very hard to break into. Because once they have regular companies they deal with they don't like to change that.
5. The insurance company will pay for you to rent a place untill you are able to move back home. You do not realize how much money is being squandered on this brilliant ideal. Insurance companies are paying anywhere from 2400.00 a month and up to place you in a house and pay for your keep which only includes necessary items like elec, gas, you know essentials.(I don't believe they pay for food or other expenses but I am not sure!!!)
6. Make sure you have the right insurance! I cannot express this enough, get good insurance that covers your CODE upgrades that may be necessary for your home if it's older. This is when your house has to be brought up to a standard in your community. This can run you lots of money. Things that were ok before the fire or incident suddenly are no longer good enough. Watch out for these costs, and the loss management will add on 20% or more to each contractors bid for items you may end up paying out of your pocket.
7. Deal with the extra contractors yourself. As I stated loss management adds money on to every bid they get for you. It pays for their time and then some.
8.Cover your contents and do not sign away anything to the loss management to handle.
You will get burned. They do not give this money to you untill they have collect every dime THEY think you owe them. Remember when you give up control to a company that does this, you can expect to pay through the nose for their service.
They have the whole game covered. From board up service right down to the chosen contractors they put in your home.
9. Request lien waivers from every contractor. You have to wait untill they get paid which is a challenge itself from the management company. They drag it out as long as they can. they make promises and they do not keep them and will tell you anything to
get you off their backs. But get it in writing.
10. Contractors are way under paid here. We did complete over hauls of houses that had burned(let's take 1 example a 3 bedroom ranch style with a full basement)
We ended up getting paid about 36000.00 for the job including materials. So we had to purchase materials and remodel top to bottom for that amount of money. That was our first job. We thought, ok well maybe we were very good accountants. That couldn't be right! We must being doing something wrong. After all why would you think that they wouldn't even give you enough money to pay to do the house. We ended up 5000.00 in the red on that one!
The prices for the next four went up some but in the end we either make only a few thousand for 2 or months of work or we ended in the red.
Beware of who you are dealing with. If you have questions ask, ask ask. Don't take their crap and especially watch your money coming from the insurance into the pockets of a loss management company, who is not looking out for you.
For more information on this subject you are welcome to comment and I will return your comments with an answer as best as I can.
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