# Mad Sky Managed Roof Program



## wvestal14 (Mar 15, 2016)

Anybody heard of this program? They heavily advertise on Facebook so I gave them a call out of curiosity. They have contracts with Liberty Mutual and Safeco and their insureds are encouraged to use the program or "opt in" when they call and make a roof claim. Mad Sky has you sign an "at will" contract and your company is assigned the claim (not multiple roofers racing to the house a la Home Advisor). Mad Sky writes the estimate on Xactimate and you get 40% of RCV for the roof labor (they pay for the material) and 90% of RCV for anything else on the claim (you pay both labor and material on that). Crunching the numbers it looks like you do make less per claim especially on smaller roofs (under $10K) but make up for it in volume and on accessories. On larger claims over $20K it is about the same. 

Anybody have any experience with this program or similar?


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## ScipioAfricanus (Sep 13, 2008)

Now, I have never used them or any other referral company when I was a GC so I apologize for not being able to contribute to the conversation there but his is the part of the post that got me, " it looks like you do make less per claim especially on smaller roofs (under $10K) but make up for it in volume". 

Never is all my years as a GC had I ever been able to make this kind of scenario work for me. When working at a discount on a small and/or single job, are you not still working at a discount at the same rate on multiple and/or larger jobs?

Andy.


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## wvestal14 (Mar 15, 2016)

Not necessarily. In Texas we normally make $3000 to $4000 profit per roof and most roofs are in the $15,000 to $20,000 range. But a lot of homes are two story steep with only shingles on the second story. So there could be 25-30 squares of 10/12 so the ratio of labor cost to material cost is higher. These are the $10,000 roofs that I was talking about. The larger roofs have a better labor to material ratio because normally they have lower pitches mixed in with some high pitch. The are only paying 40% of RCV to cover your labor costs where on smaller roofs the number work better for me if they paid 50%.


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## FremontREO (Sep 30, 2009)

I have seen many of these preferred vendor programs and it's a tough road for the contractor. 

You stated Mad Sky writes the Xactimate estimate--most managed claim programs have negotiated with the carrier that they won't charge for "X" ( steep charge or additional layers or drip edge etc etc). 

By shorting the estimate your %'s are smaller and contractors I have worked with don't last long cuz The only winner is the Insurance Carrier.


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## Zatol (Dec 4, 2005)

Sounds like you do all of the leg work for them. You go out and document the claim, take the photos and diagram the roof. They write the estimate and send it up to a desk adjuster to approve. If they approve, then you may get the work if the customer opts to use you. If they do not approve or if the customer does not use you then you would have done all of this work for free. 

40% of the RCV to cover your labor, debris removal and disposal, insurance, fuel, etc, is really not much. What if your measurement was wrong and you need another square of shingles? How do they handle that? Insurance company would say no to supplements because you measured it. Mad Sky would say you eat it, you measured it.

I would recommend steering clear of this deal. I see many pitfalls where you will come out on the losing end.

If you like this sort of work, look into Crawford Contractor Connection. You still do the legwork and you write the estimate, but your "fee" is only 4.5% of the RCV...


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