Department of Insurance Sits Down with Roofing Industry
Coming together is a beginning. Keeping together is progress. Working together is success. – Henry Ford
When I started this blog, there was initial hesitancy from multiple individuals on why a roofing manufacturer was educating or even talking about the world of insurance. Remember this blog is dedicated to connecting the insurance world with the roofing industry. Well, it seems GAF was not the only one to understand that the insurance and roofing markets need to work together. Just last week, the Roofing Contractors Association of Texas (RCAT) completed their first joint meeting with the Texas Department of Insurance (TDI) and invited roofing contractors to attend as well. In short, the worlds of roofing and insurance legislators took another step closer in working together to formulate a better experience for all.
The focus of the meeting was to allow a forum for the TDI to speak to members of RCAT and other roofing contractors about their positions on insurance topics. Keep in mind, insurance is regulated on a state by state basis, so what the TDI discussed about Texas may not hold true for OK, FL, CO, etc. During the meeting, they clarified a couple points regarding Public Adjusters vs. Contractors and the always interesting question regarding O&P. I’ve mentioned it before but Texas is adamant regarding the fact that contractors cannot act as both the Contractor to do the repair and the adjuster to represent and adjust the claim. The contractor can put together an estimate of damage, but cannot negotiate on behalf of the insured. The contractor can create an estimate in the presence of an insurance adjuster and answer adjusters questions but cannot act on behalf of the insured in the ACV or RCV payments. The TDI did attempt to clarify the O&P issue as well. They made it clear that if a roofing contractor is a licensed General Contractor, then they should receive the additional GCO&P as long as the work is reasonably likely to have a GC perform the repair. The TDI specifically stated that it does not mention a trade minimum to receive GCO&P anywhere in the by-laws regarding an insured’s right to be paid the contractors GCO&P. To me that was the first time I’ve heard an insurance representative mention that it does not specifically state “# of trades” as a pre-qualifier for GCO&P.
Overall the conference was relatively quick, mostly because the TDI was only responding to previously submitted questions and did not accept any “live” questions from the audience. But, I think the most important point to take away from this whole event is that both the insurance community and roofing contractor association understand that having an open dialogue will benefit legitimate contractors and reduce the apparent friction between both groups. RCAT and TDI mentioned that this type of interaction would not stop after this one seminar but would continue to grow. Significant change does not occur over night, the process is usually slow and painful but the end result should benefit both parties. I look forward to the next meeting and the next state that recognizes the importance of these interactions.