# Over head and profit.



## dakzaag (Jan 6, 2009)

I had two very lengthy conversations with the same adjuster regarding a repair to a building. I simply discussed the cost of repairs and the extent of the damage. 

One phrase I used probably ten times if I used it once was "the majority of the damage is hidden beneath the roof and until the roof is removed, there is no way to possibly predict an accurate project scope."

The building in question had the roof lifted off by a strong storm and then the roof dropped back onto the building. It looked like nothing had happened at all. 

The customer is still waiting for me to come and do the work, they fought with the adjuster for 9 months until they recieved a settlement. I have no idea how they made out, but I was told by the adjuster that my estimate was 20 to 30 percent too high.

I told him to find another contractor.:clap:


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## mbryan (Dec 6, 2010)

Astrix said:


> ...


Thanks, I'll have to print that and read it!


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## larryb (May 23, 2008)

Property & Casualty insurance companies must pay contractor Overhead and Profit (O&P) on all claims (not just when two or three or more trades are involved) without deductions for roofing, carpet, etc. Any Independent Adjuster or staff adjuster and/or in house claims representative and/or claim department supervisor and/or executive level claims management personnel who is a part of and/or supports any refusal to pay O&P on 100% of each claim, regardless of whether or not a GC is involved, has likely committed a bad faith act and a violation of fair market trade practices. Not paying O&P on 100% of every claim when it has been charged for as part of the insured’s premium payments results in an illegal windfall to the insurance company in the form of unjust enrichment. Such acts may also be construed as and may constitute fraud on the part of all parties representing the insurance company whose actions result in non-payment of full O&P. 

Even if an adjuster and/or in house claims representative and/or their supervisors are simply following orders to attempt to withhold O&P payments from their insured’s, the responsible parties are still culpable for any wrong doing and are also therefore subject to the appropriate legal remedies which may include prosecution and/or substantial fines and/or imprisonment, if convicted. In addition, sub-contractor invoices are not required in order for O&P to be paid and are therefore not a valid reason or excuse for withholding O&P payments from the insured(s).


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