No one likes to be instructed to not do one thing. So, I’m penning this weblog publish understanding that my contractor pals, who I’ve written about in lots of posts similar to Restoration Contractors Offering Nice High quality Workmanship Are Policyholder Pals However Many Insurance coverage Firms Refuse To Pay For High quality, and The Hero Contractor: Being a Contender and Not a Pretender, could should be reminded to not shoot the messenger and that each one of us should observe the regulation.
I listened intensely to Tim Varga on the Georgia Affiliation of Public Insurance coverage Adjusters Fall Convention in Atlanta on Tuesday. Tim gave a presentation on Catastrophic Consulting and Demystifying the Unlicensed Observe of Public Adjusting (UPPA). Whereas he was making the presentation, which confirmed how roofing corporations could possibly be in violation of Georgia legal regulation relating to the follow of public adjusting, I made a easy Google search of “Georgia roof claims and insurance coverage assist.” Quite a few roofing corporations look like promoting to assist policyholders make roof insurance coverage claims, based mostly on the outcomes of my search.
Dr. Roof is one such advertiser. Dr. Roof presents providers that carefully resemble these sometimes offered by licensed public adjusters. They state that they are going to:
- Examine the property for harm
- Doc the harm with photographs and measurements
- Assessment the insurance coverage coverage
- Help in submitting the declare
- Meet with the insurance coverage adjuster
- Negotiate with the insurance coverage firm
These actions, notably reviewing the coverage to help within the insurance coverage declare, helping with declare submitting, and negotiating with the insurance coverage firm, appear to be crossing the road into public adjusting. In that case, Georgia has extreme legal penalties for even promoting to do such actions with out having a regulation or public adjuster license. Georgia defines what public adjusters can do and requires these doing so to be licensed. By providing providers which may be thought of public adjusting with out the correct licensing, Dr. Roof could possibly be violating state legal rules.
Particular problematic statements by Dr. Roof that could possibly be interpreted as providing public adjusting providers embody the next:
- “We’ll overview your insurance coverage coverage to make sure you obtain the total advantages you’re entitled to.”
- “Our crew will help you in submitting your declare and supply all needed documentation to your insurance coverage firm.”
- “We’ll meet along with your insurance coverage adjuster to debate the extent of the harm and needed repairs.”
- “If wanted, we’ll negotiate along with your insurance coverage firm to make sure you obtain honest compensation.”
These statements recommend that Dr. Roof is actively collaborating within the claims course of past the scope of a typical roofing contractor. If accused of unlicensed follow of public adjusting, Dr. Roof might face authorized penalties, together with fines, stop and desist orders, legal prosecution and different penalties as decided by Georgia regulation.
After I give courses to insurance coverage restoration contractors, I inform them they need to get the coverage to make sure they’ll decide how they’ll receives a commission. I additionally warn them to “keep in your lane” and to not get entangled with negotiating the declare and doing greater than reviewing the coverage for their very own pursuits. I beforehand wrote about this idea of staying in a single’s lane in Ought to You Rent an Lawyer to Repair Your Roof? Ought to You Rent a Roofer to Argue Your Roof Insurance coverage Declare in Courtroom:
A fundamental authorized rule could also be to ensure that all to recollect. Simply since you write one thing like, “I’m not a lawyer and never giving authorized recommendation,” doesn’t absolve you from the authorized penalties when your actions exhibit that you’ve got been working towards regulation with out a license. The identical is true for any individual conducting themselves as a public adjuster, engineer, and any variety of trades the place the state requires that the person be licensed. You can’t be unlicensed and do these actions with out breaking the regulation.
So, simply because this contractor advertises that it’s not a public adjuster doesn’t absolve its adjusting actions….
People hate to be instructed that we can not do one thing. I really feel the identical means. But, most states regulate who can repair roofs, who can present engineering providers, who can follow regulation, and who can follow public adjusting to guard our fellow residents from those that wouldn’t have the credentials.
I’ve written that Contractors Can not Legally Negotiate Insurance coverage Claims. On the identical time, I famous in that very same publish that it’s completely acceptable for restoration and contractors to debate pricing and strategies of fixing harm:
Contractors can and may focus on the harm they discover and prices of repairs with insurance coverage adjusters. The Arizona Division of Insurance coverage clearly indicated this was acceptable:
It isn’t uncommon for a property proprietor’s contractor to debate the main points of constructing harm with the insurance coverage firm’s adjuster, notably when there’s in depth or complicated harm. Usually the contractor’s experience is crucial to establish exactly what was broken, the extent of the harm, and the price to restore it….
So, the warning of this publish is to observe the regulation. If a restoration contractor has even the slightest concern that its internet advertising or actions are violating state regulation, the contractor ought to rent competent authorized counsel instantly to overview the promoting and its actions to make sure legal guidelines are adopted.
Thought for The Day
Honesty and integrity are completely important for fulfillment in life – all areas of life.
—Zig Ziglar