3 Simple Steps to Increase Your Chances of Getting Paid O&PApril 11, 2017
Overhead & profit (O&P) costs commonly arise when repairing significant damage – like windstorm or hail damage – to residential or commercial properties, as most general contractors (GCs) know. From obtaining permits to coordinating repairs and supervising subcontractors, GC’s O&P costs can add up, especially when property damage necessitates extensive repairs.
Although a property owner’s insurance policy should typically cover O&P costs, insurance companies often do whatever they can to avoid paying the full amount of a claim. That can mean that insurers undercut or deny contractors O&P costs even though these costs are covered and are part of a valid property damage claim.
If you’re fighting with an insurance company over O&P or any other aspect of a property damage claim, contact the Amaro Law Firm for help fighting back.
Our lawyers have decades of experience assisting contractors and their customers across Texas with hail and property damage claims. We specialize in handling bad faith insurance claims and in supporting contractors’ revenue streams. Our team has handled thousands of claims since Hurricane Ike.
If you’re preparing a property or hail damage repair estimate on behalf of a property owner, here is what you need to know to minimize the risk that the insurance company will deny paying the O&P expenses of the repair costs.
Overhead & Profit Costs: Why Insurance Companies Refuse to Pay O&P?
O&P costs can be challenging to secure from insurance companies because insurers will use whatever tactics they can to try to reduce or deny valid property damage claims. Some of the primary reasons for this include that:
- Insurers and their adjusters are focused on protecting the company’s profits and bottom lines, rather than protecting their clients or honoring their policies. This can mean that insurers may go so far as to violate the law and act in bad faith.
- Contractors and their customers may feel like they have no other option, making them accept lowball offers.
This can create an uphill battle for contractors and property owners when it comes to dealing with insurance companies and getting the full amount of the payout deserved (including O&P payments).
How to Get Paid Overhead & Profit on a Hail Damage Claim: Helpful Tips for Contractors
Knowing that insurers will be intent on minimizing or denying O&P costs for property and hail damage claims, here is what contractors should know and do to increase the chances of getting paid O&P:
- Get a written agreement for O&P payment upfront – Check the property insurance policy. If O&P is covered in (or not specifically excluded by) the policy, strongly urge the insurer to agree in writing to pay O&P costs before the repair work begins. This kind of written agreement from an insurance company can limit the chances of a future dispute over O&P.
- Meticulously document the O&P costs – Keep a detailed log in which you record the time, money and other resources expended in managing, coordinating and overseeing the necessary repairs. These records can verify the extent of the O&P costs, making it more difficult for insurers to try to undercut (or deny) them.
- Contact a lawyer – A skilled attorney can help you challenge the various tactics that insurers may use to try to avoid paying O&P. Additionally, Texas laws1 allow recovery for attorney fees in addition to actual damages. This means that a prevailing claim (for a contractor and the client) can result in damages that include the full amount of original damage claim and reasonable and necessary attorney’s fees.In other words, with the help and representation of an experienced lawyer, the insured can get his property repaired; the contractor can get paid at 100% of his estimates without having to worry about overhead expenses; and the attorneys overseeing the claim can be paid directly from the insurance company.
Level the Playing Field When Dealing with Insurers: Contact a Houston Hail Damage Claim Lawyer at the Amaro Law Firm
Don’t let an insurance company cheat you out of the overhead and profit payment (or other payouts) you deserve. Contact a Houston hail damage claim lawyer at the Amaro Law Firm to find out more about your options for fighting back.
Our attorneys get property damage and hail claims quickly paid in full using the knowledge and experience from successfully resolving hundreds of claims per year. We represent contractors, public adjusters, and policyholders who are unable to resolve their property damage claims.