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Colorado Senate Bill 38

10K views 21 replies 7 participants last post by  Roofmaster417 
#1 ·
#2 ·
I find the part about the deductibe a bit confusing.

I bid projects far and wide here in Wyoming. Most all of our residential is insurance work. We DO NOT negotiate with the insurance or the customer for that matter. Our price is our price if your insurance won't cover it then too bad!

However, some areas I have found that our prices are too high for insurance work to cover. In other ares our prices are lower and well within the realm of the insurance rate. This is do to logistical reasons as some parts of our state are simply less accessible than others.

With that said, our company gets a really good deal from one of the regional distrubuters. This allows our prices to be significantly lower than our competitors in some areas (yes we are raising our prices in these areas because I hate leaving money on the table). This leaves some room for the deductible to be (covered).

So, if my price is low enough to cover their deductible within our own price structure. Does this mean I would be breaking the law if this law were passed in Wyoming? As stated before. Our price is our price. Whatever's left over is yours to keep.

Granted this law is designed to keep stormers and predatory roofers at bay but I am a bit curious how this works as I am sure it come to Wyoming.
 
#3 ·
It's a bit confusing but from what Ive researched on it, this law could be a lot worse. They had wanted a clause in the law that required contractors to take a state test administered by the CRA which is pretty much a dictatorship in the making if that passed.

You should still price your jobs as you normally do. If you use Xactimate youre still going to have the same pricing except with Farmers since theyre using a different program now.

Companies that want to compete which is healthy I think, can still have discounts but I offer them as incentives. We used to say if you pay your deductible or half we will upgrade you for free to the next shingle up,aclass 4 or install ridge ventilation or a solar powered ventilation.

Now we will likely offer 1 Free solar powered ventilation unit or upgrade to Tamko Woodgate with Ridgeroll ventilation. I can sell my customers on the 25-30% decrease in their Xcel energy bill. I track vmy ventilation customers and 90% of them have seen dramatic difference in their bills since ventilating.

I also offer a 250 discount on any roof under 7500 and 500 up to 15000 and 1000 if over 15000.

Just dont call it a deductible and write an addendum and you should be fine and legal.
 
#4 ·
I do a ridiculous amount of insurance related work.I don't give deductions for anything.The SB 101 takes care of the deductible munchers here in the Sho-me state.

Deductibles are in place for a reason and that reason is mandated by the insurer and now its the law.I am VERY pleased with the SB 101.

I still negotiate with the insurers just now its a different terminology than "Negotiating'.

IMHO I feel that covering a deductible is unethical.IMO that is what is wrong with the roofing industry (One of them) Giving deductions,discounts,T.V's,Ipad's and whatever else the cashback contractors can conj our up.Giving these "Gifts" tips the scale in the givers favor.

It seems to me that winning a contract is all about what you can give the homeowners in terms of gifts and deductions.I guess the "Winning" a contract because of top notch installations and stellar reputation has gone out the window replaced by what I can give you for free to earn your business.

Nothing against anyone personally this is how I feel.
 
#5 ·
It will mandate that in order to get business you will have to show why they should sign with you and there will be some customers who cant get roofs because they dont have any money.. I was able to help a guy who had cancer get a new roof and he was unemployed filing for social security and his deductible was only 500 but the 500 needed to go to his medical costs and living expenses.I still made 3300 in profit.
 
#6 ·
Roofmaster: It is good to hear of another roofing contractor doing business as usual within this law. I figured it was better for the business than anything. Our company is built on solid work and a stellar reputation. That still goes a long way here in Wyoming.

If we give anything away it will be our own sales incentives that are produced whether it's an insurance job or not.

If you can help someone out then more power too you. I don't think I could deny some old cancerous guy who has a leaky roof. Thats the right thing to do and I think most of us on this site would do just that.

Anything that helps keep the stormers at bay is a good thing.
 
#7 ·
I agree,,taking care of those less fortunate is extremely important.Giving back or paying it forward to a community that has made you what you are is important.

I give inncentives and I have also done work for people who clearly could not afford it for nothing.There are exceptions to everything.

If a customer can afford a roof and they called me then I will give them what they ask for but why should I give them electronics or some of my hard earned money back to them because I was oh so fortunate to have them as a customer.

I have a heart and I feel for those less fortunate.But when it comes to insurance claims its bare knuckles.
 
#8 ·
I thought offering the deductible was already illegal???
It definitely seems unethical...
I know a woman who was 97. She has a woodruf on her home. It is in good condition. A contractor came and said I’ll get you a new roof, for Free. That’s right, no deductible. any you’ll have a brand new asphalt roof. (on a side note, there was some damage on the roof caused by the roofer while he was up there. He called it wind damage) I get called in by the insurance company. She tells me the story, shows me the 15 year (yea I’m calling it 15 year because itll be lucky if it last that long) shingle he proposed. This 97 year old woman says to me "isn’t the roof I have on there better than those"? I said yes at one time it was marketed as a Hailproof 50 year roof. I explained hers was in reasonable shape, I explained the history of the product and that hers hadn’t "failed" in the sense that most woodrufs failed. and I told her it may last another 15 years, but it’s tough to say. She thanked me and said "I knew that roofer was trying to be dishonest. This old lady who was sharp as a tack at nearly 100 years old realized that she could take advantage of the system, but knew it wasn’t right and really she wasn’t even making out in the deal.

Really I don’t care about what a roofer charges unless I am doing an appraisal, I go to a job, tell the facts, and the insurance company and roofer work it out. But to me it seems unethical. The Deductible is there for a reason to make your rates lower. You are misrepresenting your bid if it is "hidden" in there and to me that seems like insurance fraud. But like I said, I don’t know much about insurance but it seems like practices like that are the reason my insurance is so expensive. Insurance isn’t there to get me a new roof when it wears out. Insurance is there to protect me in an extreme case where there is an actual quantifiable loss of Value or remaining service life. If someone’s shingle roof is hail damaged, it’s not leaking because of hail. They can save up that deductible. If they still can’t afford it than that is a different story but building the deductible into the cost is taking the money from somewhere else because I assure you, you’re not cutting into their profits, they just pass it onto the consumer.

Please dont take this as an attack in any way, I reread it and it sounds abrasive but I dont mean it in that was just expressing my opinion. :) Thanks for this post, this Document has some great info that may help me out in the future.
 
#9 ·
I agree with you about the deductible paying being insurance fraud. I have had numerous customers ask me about this and I explained to them I wouldn't risk my license and time in jail so they could pocket their deductible. I believe it is fraud, not by my standards but I am pretty sure according to the law of Illinois. I believe that there is no way for me to mark their deductible into the cost of the job and give it back to them and still feed my children.

I do not believe anyone who pays back a deductible is doing it out of the goodness of their heart. I believe those who do it are bribing the customer into signing their contract, period. God damn, firs free estimates, now we are paying the customers to do their roofs.... What's next? At what point will the insanity stop? AND then stormers wonder why there is legislation like this on the books? Hmmm let me see...
 
#10 ·
Grumpy and Pie,,,I agree 100%.And Pie your post was not by any means abrasive.I found it right on the money.

Grumpy and Pie its nice to know others share the same views regarding deductible coverage.When you pay/cover a deductible it is against the law,,,,Finally :thumbup:

People don't understand that when they cover the deductible the insurer is winning again.As it has been said covering the deductible leaves even more money on the table.

Most people that carry and have assumed the name "Storm Specialist" are no more knowledgeable about storm claims than the homeowners they are providing repairs for.

"Storm Specialist" lmao,,,What is that exactly ?? Big title even sounds professional but when it comes down to it if a chunk of ice the size of a 50 cent piece falls from the sky at terminal velocity and hits your roof/siding/gutters,,,it will leave a mark.

This deductible covering has been under my skin for a long time.
 
#11 ·
I refuse to eat deductibles, even though I do some storm work. I freaking hate it. Storm work is one of the reasons I started leaning towards commercial just to get away from the stormers, who are never roofers....just salesmen selling shingles.
 
#12 ·
Ding Ding Ding... Man you hit the nail on the head. That's exactly what I have been saying. As the residential market moves more towards the storm chaser business model, I have been moving more towards the commercial roofs.

But we are a dieing breed. And I suspect before I retire I will either have to begin doing storm work the way everyone else does or just abandon residential entirely. I also predict before I retire the stormers will be doing the very same with commercial as they now do with residential. Roofing just isn't my passion any more, in large part due to stormers.
 
#13 ·
I look at a ton of commercial work that has storm related damage. A lot of it is Blow-offs so really I am just analyzing the means of failure but Public adjusters are already all over Commercial work cause 10% of a million is way more than 10% of 20K. Roofers are doing it too. Fortunately for me I know low slope roofing products very well and have the means to prove or disprove damage. There will always be the element of storm chasers but 9 times out of 10 after I am on the roof explaining the real issues, the owner gets rid of that roofer and listens to my suggestions. I am pretty good at calling them when I see their names and then it’s a positive ID when they hand me their business card and its printed on a certain kind of membrane... Then the owner says, well I’m going with this guy cause it says right here it’s the world’s greatest roof... I actually enjoy that part. It makes my job rewarding when I can educate a building owner about his roofs. Sometimes I wish I could do what I do for free…. :yes:
 
#16 ·
your right... They may try it, but Commercial work typically goes to local guys who have a reputation. Ive been recommending commercial rooferss for years and I have NEVER reccommended a Residential roofer. Im not trying to descriminate, I guess its a liability I dont want to be involved with. To many cheats out there.

So How do I know if this Bill takes affect tomorrow?
 
#18 · (Edited)
So How do I know if this Bill takes affect tomorrow?

I can guaranty that it will go in affect.Majority of the people who whine about it and booh hoo are the ones the law is protecting homeowners and the insurance carriers from in the first place.

But chasers won't stand and fight,,,they just move on to another state that has no Senate Bills regarding insurance restorations.

All you have to do is adapt to the situation.
 
#17 ·
The NDL is a equalizer in commercial, to an extent. I have seen some chit that was supposedly approved that left me scratching my head. I don't see NDL as being a requirement too much when speaking with customers. I'm usually the one educating them on it.

As for what is being said about the commercial customer knowing there is no such thing as a free roof, the same can be said for residential customers too... though they are few and far between. Not many people manage their finances like a successful business and not many people can say no to a free roof, especially if they know they need one.
 
#21 ·
I was wondering how this had affected CO roofers? I know that storm hit the 6th. I still have seen a few signs that say "free roof".
 
#22 ·
I was wondering how this had affected CO roofers? I know that storm hit the 6th. I still have seen a few signs that say "free roof".
You will continue to see the "Free Roof"(ers) signs because the enforcement of the SB's is the big issue right now.

I still ask some locals what they are doing about the SB 101 and they reply with SB What ?? And I think yep,,,exactly.
 
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