It is against the law for a policyholder (PH) to profit from his loss. He can do his own repairs and submit the hours and your reasonable fee to make said repairs but they can exclude the profit (10%) but not he Overhead (also 10%). So on the end of a claim you will most times see Profit and Overhead at 10&10%. The accepted rule of thumb is three trades, drywall, carpenters, roofers, etc. to earn the O&P. They generally can keep the difference. If you bargained and got a better dear, good for you. You should be able to keep that difference. Just make sure the receipts are there.
Understood. I’m not trying to profit. My husband told the clm adj that he used to be a GC and I think she is thinking we will try to pocket some cash. Truth is, he doesn’t have the time to do the work himself and I don’t have the patience to wait for him to do it. lol But I was wondering why it wouldn’t be acceptable as long as the agreed upon amount is fair. Is it usual to require a GC to provide all their receipts at completion of a job? Why should a GC be required to only get paid wholesale prices when if I hire the trades myself, I pay retail? Doesn’t seem fair for the GC.
It is strange, but each ins. co. is different. It would be the adjuster that is being difficult. Probably something said about being ur own GC that set the adjuster off. All the GC has to do is give one receipt for repair work and receipts on his letterhead. They aren’t required to know the cost of each item.
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It is against the law for a policyholder (PH) to profit from his loss. He can do his own repairs and submit the hours and your reasonable fee to make said repairs but they can exclude the profit (10%) but not he Overhead (also 10%). So on the end of a claim you will most times see Profit and Overhead at 10&10%. The accepted rule of thumb is three trades, drywall, carpenters, roofers, etc. to earn the O&P. They generally can keep the difference. If you bargained and got a better dear, good for you. You should be able to keep that difference. Just make sure the receipts are there.
Understood. I’m not trying to profit. My husband told the clm adj that he used to be a GC and I think she is thinking we will try to pocket some cash. Truth is, he doesn’t have the time to do the work himself and I don’t have the patience to wait for him to do it. lol But I was wondering why it wouldn’t be acceptable as long as the agreed upon amount is fair. Is it usual to require a GC to provide all their receipts at completion of a job? Why should a GC be required to only get paid wholesale prices when if I hire the trades myself, I pay retail? Doesn’t seem fair for the GC.
It is strange, but each ins. co. is different. It would be the adjuster that is being difficult. Probably something said about being ur own GC that set the adjuster off. All the GC has to do is give one receipt for repair work and receipts on his letterhead. They aren’t required to know the cost of each item.
Thanks, Gary.
Victim, you are welcome. Feel free to ask any other questions concerning insurance at 3aclaim.com ask the adjuster section.