While our certified public adjusters at Morgan Elite Specialist Services are by no means legal entities or advisors, they do take pride in their knowledge and understanding of Texas Insurance Law.
We have recently been made aware that many contractors include language in their contracts indicating that they will, in some form or fashion, act on an insurance claim on behalf of their clients. Said contractors have been contacted directly by the Texas Department of Insurance and reprimanded. Although actions of this nature may stem from good intentions to provide top notch customer service practices, the days of ‘one stop shops’ in the insurance claims contracting field are seemingly gone.
To be clear, HB 1183 basically states that “no contractor can negotiate an insurance claim on behalf of an insured. Also, no contractor, insurance adjuster, or public insurance adjuster can both act as a contractor AND adjuster for an insured.”
While the bill may seem unfair to roofers and contractors, it was initiated to protect insureds from being grossly taken advantage of as they were at one point. We would like to offer some advice backed solely by good intentions to help safeguard the future of your ethics, business, and integrity:
1.) Have all contracts reviewed by an attorney: Ensure contracts do not contain language
that negates or does not coincide with Texas insurance laws.
2.) Do not initiate a claim: Advise homeowners or insurance policyholders to
initiate warranted claims. Provide all information pertinent to the loss which will
assist in properly filing a claim.
3.) Do not inspect or even be present during any insurance inspection: Aside from
providing quotes, roofers and contractors are not allowed to negotiate anything with
insurance companies. Unfortunately, we have seen instances where contractors have
been reported to TDI for making simple material requests to an insurance adjuster.
4.) Refer clients to public adjusters when sustained damages warrant a claim: When
attained, public adjusters and attorneys are the only parties aside from policy
holders that can legally negotiate claims with insurance companies.
Unfortunately, warranted insurance claims are increasingly denied and without assistance these denials seem to be reaching epidemic proportions. Our team at Morgan Elite Specialist Services, we are licensed professionals and experts in the insurance field.
Don't just take our word for it! According to OPPAGA, back in 2004, public adjusters were able to only get a 20% increase on insurance claims. Now, public adjusters are taking claims that would have only received $2,029 and negotiating for $17,187. That's an 750% increase in settlement! As the age old adage goes, the proof is in the pudding. We offer free consultations and inspections.
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