Creating A Win-Win with InsuranceAgents and Adjusters on Water Loss As a contractor, we go out to do the work, and much like the U.S. Postal Service motto goes - ‘Neither snow nor rain nor gloom of night…stays us from our appointed rounds.” We are committed to taking care of our customer, the loss victim. We are also committed to providing a high-level of service to the other customer who is often part of the process, the representatives of the insurance carrier. We demonstrate this commitment by creating a quality estimate and submitting that estimate in a timely fashion. We do all of this while trying to take in to account the many rules and stipulations that often vary from carrier to carrier, and even representative to representative. Once submitted, the adjusters representing those carriers often voice objections — some substantial, some minor.

No doubt – the demands of the job, serving multiple clients whose interests may not always align and navigating a wide array of estimating issues and trying to get paid on a timely basis, can make you long for a different career path at times!

The reality is, there are always two sides to every complicated relationship and the contractor-adjuster relationship is no exception. The adjusters involved in processing water damage claims are just like you — they have a job to do. Yet, the insurance representatives you interact with actually share some common goals. When you can align, or dare we say, compromise with insurance adjusters in these common goals, you can cultivate win-win partnerships – and keep your profitability and sanity intact.

How the Adjuster-Contractor Relationship Benefits You Before you begin to build a win-win partnership with the insurance adjusters you work with, you need to understand how these relationships benefit you and your bottom line. A strong relationship helps you get paid faster, and you are more likely to have your name on the insurance check, speeding up the payment process.

Maintaining an acceptable job average is another benefit of strong relationships with adjusters. When you’ve worked hard to avoid conflict and satisfactorily resolve differences of opinion, most adjusters will be more inclined to work with you on the next job, and some will even voice their support of you with the agents. Cultivating this relationship will help future jobs go much smoother. This doesn’t mean you give in to every objection, but negotiate toward the middle ground that works for both sides.

Negotiating the Claim Although it would be easier if claim payment policies were uniform across the board, we all know that is simply not how the real world works. Which line items get paid, and which don’t, vary from carrier to carrier and sometimes from adjuster to adjuster with the same company. This is just one more complication in the relationship between contractors and insurance adjusters.

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Anticipating potential issues prior to submitting the estimate can be a huge step in making things work a little smoother. The first step in achieving this is paying attention to carrier differences when making an estimate. In fact, we recommend you capture these differences and take note of them. We keep a running list and update it frequently. It becomes a part of the DNA of our estimating process. Next, you need to justify your claim. By adding notes and pictures to line items that may be questioned, you often avoid objections. You can also call or email the adjuster before you submit the estimate, opening up communication about line items that might create a conflict or seem out of the ordinary. Be proactive. Start with and maintain a friendly attitude. This saying is an oldy but a goody - people do business with people they like.

So, what happens when you’ve done everything you can prior to submitting the estimate, but they still push back with issues? Speed is your friend. Move quickly and communicate with the adjuster as soon as you know there’s a problem. Sometimes the insurance carrier or company policy won’t allow for certain line items or certain quantities. Get clarity from the adjuster about what the issue is exactly, and look for ways to compromise. Perhaps there is another line item or a small adjustment that would help get this claim through and satisfy you both.

When the Mortgage Company is on the Insurance Check When homeowners are still paying on their mortgage and they experience a water damage, it is common for the insurance claim check to include their mortgage company’s name. Unfortunately for contractors, this can create additional complications and slow the process.

Ideally, even when the claim check includes the mortgage company, the check will still have made it into your possession. Remember, this is one of the benefits we see with a healthy adjuster-contractor relationship — you are more likely to receive the check from the carrier. If this is the case, your first task is getting the check endorsed by the mortgage company.

Begin by finding out if the mortgage company has a local office. Call them, see what they require to get the check endorsed, and then head into the office to talk through the claim and get the check endorsed.

If the mortgage company isn’t local, you will need to work with them over the phone. Remember, they can’t ‘see’ you on the phone, so be aware of how you sound. Try to make friends with someone within in the company, starting with the first person who answers the phone. Find out exactly what you need to do to get the check endorsed remotely.

Mortgage companies are often unwilling to talk with anyone other than the mortgage holder. You’ll need the customer to give you the legal rights to communicate with their mortgage company. The exact procedure for this varies, so be certain you have a full understanding of your local laws. For some contractors, it might make sense to include a release for communication with mortgage companies in the initial contract.

When the flood victim is behind on their mortgage payments, you can expect to experience further resistance. It isn’t uncommon for the lender to use the claim check toward what is owed on the mortgage. In this case, you will have to summon all your personal communications skills in order to get paid.

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Building Positive Relationships with Agents and Adjusters Just because the contractor-insurance relationship is complicated, doesn’t mean it has to be negative or adversarial. You can build positive relationships with insurance representatives as long as you are intentional about how you approach the relationship. We suggest a few methods for maintaining healthy relationships with insurance agents and adjusters.

The Agent-Contractor Relationship The primary focus of agents is prospecting new policy holders and retaining the ones they have, so why would it matter if they have a good relationship with you, a restoration contractor?

The truth is, while adjusters are typically the ones working directly with a claimant, there are often times when the agent is also in direct contact with their insured. In some cases, they’re the middle man between an insured and the carrier during the claims process.

Since agents have a vested interest in whether a claim is filed and the severity of the claim, you can position yourself to be of great value to them in addressing both those issues. Homeowners often turn to the agent as their first contact during a water damage event. An agent that knows and trusts your company to be their eyes and ears on the loss, is likely to refer and advocate for your company to the homeowner. But, if your relationship is weak or strained, the opposite can also be true. How do you get on an agent’s good side? Here are a few methods we’ve found to be highly successful:

● Agents want to remain informed. Contractors should implement real-time communication systems so keep all parties in the know.

● Provide free inspections and estimates and work with the agent on claim determination.● Control the severity of the claim to keep costs low and to keep agents and policyholders happy.

Whenever possible, keep the scope of the job minimal by having a “dry-first” mentality. Avoid tearing out portions of the affected area when you can, and keep the homeowner in the home whenever it is possible.

● Remember that agents want a happy policyholder because they want to retain that customer. You want the same thing! Align yourself with an agent’s objectives and move forward on common ground.

The Adjuster-Contractor Relationship At first glance, it may be obvious why maintaining a positive relationship with insurance adjusters is essential. They’re deeply involved in the claim process and any interaction you have with them, positive or negative, could possibly be reported back to the agent. What may not be so clear, however, is how to go about cultivating this relationship. Avoid the us-versus-them mindset, remembering that adjusters and contractors may have different approaches, but they have the same ultimate goal — a happy homeowner and a closed file in a timely fashion.

Do your homework. Before you go head-to-head on a payment policy, you need to know if this is the carrier policy or if it is the adjusters individual approach. If a specific insurance carrier doesn’t pay a line-item, it is time to seriously consider if pushing the adjuster is worth the potential downside in damaging the relationship. Here are a few factors to consider before moving forward.

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● The relationship with the adjuster. Is payment on this line item worth causing tension in your relationship? Will pushing for payment tear down the reputation you have built with this carrier?

● The impact on your company culture. Will tension in the contractor-adjuster relationship create an ongoing culture of negativity inside your company?

● The financial impact. Pushing for payment isn’t always the most profitable course of action. What kind delays could this create in accounts receivable? Have you calculated the administrative costs of the time you and your staff are spending chasing down payment or arguing with adjusters?

● The homeowner-contractor relationship. Remember that there is a third party involved in these battles. Be careful pushing for payment as the loss victim could easily take issue with this, resulting in negative online reviews and harm to your company’s reputation.

Percentage Based Deductibles and the Increase in Customer Pay Work Insurance deductibles have been increasing over the last few years. While offering a basic deductible has long been the standard, in January of 2015 we saw more carriers begin to insure homeowners with a deductible that was a percentage-based on the value of their home. Often the percentage-based deductible is equal to, or higher than the mitigation cost.

Percentage-based deductibles are challenging for homeowners, leaving them with a decision between filing a claim or paying for it out-of-pocket. For many companies, the effect of this shift is that more homeowners are choosing not to file a claim. Our own company, Power Dry, has seen the number of self-pay homeowners rise by 57 percent since 2015. Here at More Floods, we’re of the opinion that this trend toward higher deductibles and more self-pays will increase in the coming years.

The Loss is Covered, but the Customer Doesn’t File a Claim Not all homeowners want to file a claim after becoming the victim of water damage. In some cases, the savvy homeowner has weighed the pros and cons of filing a claim and has decided that self-payment is the better choice. For instance, many homeowners have concerns about their premiums increasing after they have submitted a claim. And, if their deductible is high, they don’t see how a claim is going to save them money over the long term.

We all know that self-pay jobs are harder to sell. Homeowners who are wary of filing a claim will be shopping for the best deal. You can expect them to be talking to multiple contractors and getting multiple estimates. You can also expect price resistance to impact your closing percentage, since most homeowners simply don’t understand how costly water damage restoration is.

Because of this, your first responder will have to be well equipped with the best available moisture detection equipment and the skills to not just evaluate a job, but the tools and training to sell it. This should be someone capable of accurately assessing the worthiness of the claim, able to mitigate the cost of the damage, and work within the homeowner’s budget.

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Additionally, the work of selling to a self-pay customer begins long before the damage occurs. These homeowners will be seeking out the water damage restoration company with the best reputation and price, so the work of selling yourself begins with maintaining a great reputation online. Homeowner’s can judge you before you ever step foot on their doorstep.

Closing the Sale with the Homeowner Think of your first responders as part of your sales team. Self-pay homeowners are more likely to shop around, looking for the best deal, and the company that can work on their timeline. Knowing this must change the way you do business.

● Train your team members to close a sale. Each person responding to calls must be prepared to provide accurate on-site estimates. Additionally, customer service skills like listening well, being responsive, and practicing empathy must be top-of-mind when they arrive on the scene.

● Equip your team members to close a sale. Beyond training, there are materials your team members need to close a sale. Be certain that anyone reporting to a call is equipped with sales brochures and videos that outline the restoration process for homeowners. Be prepared to offer them financing tools for larger losses – there are financing companies in the industry for this.

● Let sales drive your team. When more homeowners are opting to self-pay, every process and system must be built with sales in mind. Answer the phones with a live person every time.

● Move quickly. The time between when the call is received to when the first responder shows up on the scene is more important than ever. Aim for a response time of less than an hour.

In addition to making each of these practices a priority, contractors will need to create new systems for tracking the percentage of sales they are closing. Reports that outline how many calls you are getting and what percentage of those are calls are resulting in a secured job should be created in real-time.

Navigating relationships with insurance companies and their representatives can be tricky, but it is very possible. With enough training and the right tools, you and your team can learn to build win-win partnerships with agents and adjusters and reap the rewards of doing so. At More Floods, we help water damage restoration business owners train their employees and develop effective systems for managing claims and payments.

To learn more, visit us at MoreFloods.com,or give us a call at 1-866-667-3356.

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