BEWARE of scams during storm season!

With Spring weather doing it's usual thing here in Nebraska, we want to inform our customers of the dangers caused by unscrupulous contractors. 

Hail and wind claims can have major problems when a homeowner is taken advantage of by a scammer.

A homeowner may be asked by a contractor to sign an agreement whereby the homeowner assigns all rights and benefits under his insurance policy to the contractor. The homeowner usually does not even realize he has done this, or doesn’t understand the implications of it.

Why this is an issue is because assignments of benefits are NOT necessary. 

• A contractor and insurer can always discuss the scope of work and a reasonable price for that work. In most claims, the contractor and adjuster reach an agreement as to the cost of repairing damaged property before a contract to perform the work is signed. Without an assignment, the homeowner can stay advised of these discussions. The insurer can and will keep the homeowner updated on the progress of his claim. In contrast, with an assignment of benefits in place, the homeowner is not kept “in the loop.” In fact, the insurer may be prohibited from even discussing the claim with the homeowner once an assignment is signed. The homeowner has no recourse for unsatisfactory work.
• After an assignment of benefits is signed, the contractor may raise the estimate or include work that was not actually needed. The claims adjuster will then have to re-adjust and re-negotiate the claim until the dispute is worked out. This leads to increased costs for the insurer, and delay for the homeowner. And if the insurer and contractor don’t get it resolved, litigation may ensue. Because an assignment of benefits gives all of the homeowner’s rights to the contractor, the contractor who is not satisfied with the amount will sue the insurer directly. Increased claims processing and litigation defense costs ultimately lead to increased premiums.
• The assignment of a roof/ hail claim to a contractor violates the basic insurance principle of insurable interest. Once the claim is assigned to the contractor, the contractor becomes the owner of the claim. However, the contractor has no insurable interest in the insured home. The contractor does not own nor live in the home, and it does not matter to the contractor whether the work is done quickly or correctly​

Claims are already hard enough to go through and with these storms passing through the area, scammers are already targeting homeowners!

​ If you have suspicions about a contractor that comes to your door, deny the service and find a trusted contractor. If you are unsure about who to trust, work closely with your insurance adjuster and agent.  They work with claims frequently and will have trusted business relationships with genuine contractors. 

We are here to serve YOU first!