At some point, almost every contractor will encounter a client filing an insurance claim to recover from a loss. But unfortunately, there are several ways in which property may be damaged that are out of the owner’s control. 

  • Fires caused by lightning, Christmas trees and unattended heating elements,
  • Flooding from too much rain, spring runoff or faulty plumbing,
  • Storms, blizzards and ice damage,
  • Accidents, incidents and general foolhardiness,
  • Pests such as termites, bees, gophers and any other destructive critters.

When these insurance claim jobs come your way, it is important to handle them. Make sure contractors get paid, your customer is satisfied, the insurance company has the necessary documentation, and you may gain a new long-term client.

 

Communication With Your Customer

Insurance claim jobs are often initiated at a challenging time for a client. Not only have they lost property, but they may be unprepared to deal with insurance and construction. If they are a new client, they may not understand how the claim process works. It is important to remember that a restoration contract is made with the property owner, not the insurance company. While it’s a good idea to review the insurance adjuster’s estimate and suggest items they may have missed, you want to avoid communicating directly with the insurance company. The customer is ultimately responsible for payment to any contractors, so they should always be kept in the loop.

As with any new customer, credit checks should be done, deposits required, and a pre-lien completed before work is begun. The client may be relying on the insurance for reimbursement, but the work and the payment for it ultimately fall to the contractor and claimant.

 

Honesty is Still the Best Policy

Throughout the insurance claim process, it is important to document the state in which you find things and the results of your work. Keeping accurate records can help support the customer’s claims and aid in estimating future contracts. In addition, when you consistently provide quality work, accurate estimates, and helpful advice, word will spread through the insurance adjuster community and your community at large. Reviews, both online and by word of mouth, can be a source of business for years to come. Good reviews are earned most easily by honesty and trustworthiness in all your business dealings. 

For more information regarding news and tips for contractors, contact the Contractors Association of Minnesota and sign up for membership today.