What comes to mind when you hear “bad faith” being used in a sentence with “insurance claims processing”?
According to the International Risk Management Institute, Inc. (IRMI), bad faith is, A term describing blatantly unfair conduct that exceeds mere negligence by an insurance company. For example, a bad faith claim may arise if an auto liability insurer arbitrarily refuses to settle a claim within policy limits, where an insured's liability is incontrovertible. How Does Bad Faith Affect Contractors?Our local networking group for restoration contractors and claims professionals will be discussing “bad faith” with licensed public adjuster and respected claims umpire, Roger Howson. If you are in Washington State, or the PNW, reach out to The DYOJO regarding the Fellowship of Construction Knowledge and Entrepreneurial Development (FoCKED).
In preparation for our conversation, we discovered this helpful from the Law Offices of Edward Cross. Brian K. Theis outlines three factors involved in determining whether there have been violations of the covenant of good faith and fair dealing for insurance claims. How Does Bath Faith Affect Homeowners?Insurance policyholders, which includes all homeowners, want to have the confidence that their policy will make them whole in the event of a water for fire damage to their greatest asset; their homes. Use this information to educate yourself and bolster your ability to advocate for what is right during the claims negotiation process. If you want to prevent unfair conduct during an insurance claim:
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What is the right price for a home improvement or remodeling project, or for anything? The right price is what a willing buyer will pay a willing seller for their goods and services. It may be helpful to know what your competitors are charging, but the reality is that many contractors DO NOT know how to price things right. Often contractors miss scope elements, undervalue their labor, and don't understand overhead costs or profit goals. How Much Should Remodeling Cost?In the world of insurance claim repairs, a common estimating tool called Xactimate provides standardized pricing based on feedback from various sources. Unit pricing, rate and materials comparisons, national averages and other factors can help a contractor to confirm their pricing strategies. Market "norms" and software programs can be useful benchmarks but they do not account for all of the elements that go into drafting the right price for your services as a contractor. If you are a contractor and you want to sharpen your skills for estimating, check out Jon Isaacson's fourth book and estimating course - How Not To Suck At Estimating: Habits for Better Project Outcomes (Coming Soon). How Much Do Insurance Repairs Cost?Focus on the scope of work, the vision of the customer, and your unique approach to the project. Contractors and consumers should focus on the value exchange between the two parties. To that end, Steven Patrick, of Level the Playing Field, joined us for The DYOJO Podcast Episode 82. He shared an informative story about a plumber that was providing great value to their customers but once their boss told them they were, "Charging more than anyone," their mindset shifted from value to cost and their habits changed. Why Are Contractors So Expensive?Please don't misconstrue the words of this author to encourage anyone to "price-gouge" rather, most contractors should be charging more for their services, especially when they provide the service and quality to match. Most contractors are hesitant to raise their prices or charge what they should be charging to build their businesses (i.e. hire more people, pay their skilled labor more, invest in retirement, provide benefits, etc).
Thursdays are for The DYOJO Podcast - INFOtainment to help you shorten your DANG learning curve. Are you aware of the rules and regulations for testing materials such as wallboard, texture, and floor coverings prior to performing any demolition work? On the latest episode of The DYOJO Podcast (#83) we discuss the importance of identifying and mitigating hazards during water and fire damage restoration projects. There are broad rules such as those in the OSHA General Duty Clause, "The General Duty Clause from the OSHA Act of 1970 requires that, in addition to compliance with hazard-specific standards, all employers provide a work environment "free from recognized hazards that are causing or are likely to cause death or serious physical harm." There are also many specific rules regarding lead and asbestos sampling which are regulated by various entities such as Labor and Industries (LNI) in Washington State. We discuss some of these elements further in a recent article from The DYOJO Blog - thedyojo.com/blog/asbestos-testing-requirements-for-water-damage Many of the safety practices that contractors follow for mold remediation originate with asbestos abatement protocols. We discuss some of the resources for these topics including:
Project your team members, your customers, and your organization by educating yourself and your clients on the best practices and regulatory compliance associated with property restoration. THANK YOU TO OUR SPONSORS: Restoration Industry Association (RIA) Restoration Technical Institute (RTI) Office Services by Brandi Institute of Inspection Cleaning Restoration Certification (IICRC) THURSDAYS ARE FOR The DYOJO Podcast - INFOtainment to help you shorten your DANG learning curve. New episodes of The DYOJO Podcast are released on Thursdays via video through YouTube and/or audio is distributed through platforms such as Apple, Spotify, Google, etc. READ MORE in The DYOJO Blog Additional Resources from The DYOJO:
Do you know the asbestos testing requirements in your local jurisdiction? In the state of Washington, if you read the LNI (Labor and Industries) regulations, the letter of the law requires everything, regardless of age, to be tested for asbestos prior to demolition or remodeling. This would apply to water and fire damage scenarios where materials such as wet drywall are being removed. As a contracts you want to do your best to:
Test for lead and asbestos before you do any work It must be understood that these regulations are not suggestions, they are the law and compliance is mandatory. Many restoration contractors are adhering to high standards and best practices, yet they encounter pushback from insurance representatives or clients who are unaware of these compliance factors. Homeowners, adjusters, and property managers will benefit from documentation that educates them on the responsibilities of all parties to adhere to testing requirements. I was discussing this with a local mitigation contractor who was being questioned by a representative from the insurance company on a claim. It may be that this person has never heard of these laws or encountered a contractor charging for them, so we forwarded this citation from LNI in Washington, “Building owners and construction contractors both share responsibility for asbestos testing when doing work on the building. A good faith inspection for asbestos, performed by an AHERA certified building inspector is required before any remodel, repair, removal, or other work that could disturb suspect materials.” Educate homeowners and property managers on their responsibilities Previously we wrote more extensively on this topic for an article in Restoration and Remediation (R&R) Magazine on the responsibilities of property owners, property managers, and contractors. You may find that content helpful in your efforts to educate various parties during an insurance claim. For additional reference, see the picture attached to this article which was taken at our local landfill in Puyallup, WA. The landfill requires proof of clearance following asbestos testing prior to being able to dispose of worksite debris. Are you interviewing for an open project management position? What questions can you ask that will help you determine if this candidate has the potential to add to your unique culture, serve your clients with an excellent experience, and bring projects in on budget? We have been working through six key questions that we believe will help you get a well-rounded perspective on whether you have the right candidate for your organiztion. Project Manager Interview Question #1Our experience and our target audience is owners and managers in the property restoration industry. Many of these questions are readily adapted to project management in any of the disciplines in the skilled trades. You can learn more about developing your project management process, skills, and tools for development in Jon Isaacson's book - So, You Want To Be A Project Manager? The first question is designed to spark conversation, it is not meant to be a trick question or a trap for the candidate. We want to know what this person knows about the insurance claims process, as it is unique to the property restoration industry.
When we interview carpenters, we ask them to rate themselves on the skills and tasks that we will have them perform. For example, we would ask a candidate to rate themselves in experience and comfort with some of the following:
We have found that structuring our interview in this manner keeps us consistent in the process and facilitates a conversation with the candidate to get an idea of what scenarios they have been in and which capabilities fall within their areas of greatest competency. Most professionals have strengths and weaknesses, so we want to discuss those so we know where this person can immediately step in to help our team and what skills we can help them to develop. Help Your Team Members Grow Their SkillsetsGrowth is a two-way street, we can help them grow by pairing them with team members who can expand their skillsets and our team will grow by having them bolster our workforce. With as much emphasis as business persons place on recruitment and hiring, it is important for intentional restorers to understand the value of employee development and retention of talent.
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